2016-05-10T11:52:14-05:00 2015-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2014-07-01 233009874 THE ALLENTOWN SPECIALTY HOSPITAL INC ALLE 6107763228 GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 181033295 RONALD J PETULA SVP OF FINANCE & CFO 6107763228 2016-04-29 1 JULIUS C GREEN CPA JD P00350393 2159720701 2014 2016-08-17 19:52:53Z GOOD SHEPHERD SPECIALTY HOSPITAL - ALLENTOWN RONALD J PETULA GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 181033295 17625663 0 X WWW.GOODSHEPHERDREHAB.ORG X 1999 PA TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING. 8 3 0 1 0 0 776 41 17486261 17624023 182 1589 154 10 17487373 17625663 0 0 0 0 6789403 7033419 0 0 0 8087100 8668617 14876503 15702036 2610870 1923627 18347638 20942465 1224669 1895869 17122969 19046596 X GOOD SHEPHERD'S MISSION IS: "MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION." 0 0 14846744 17624023 THE ALLENTOWN SPECIALTY HOSPITAL, INC. DBA GOOD SHEPHERD SPECIALTY HOSPITAL - ALLENTOWN ("GSSH") IS A 32-BED FACILITY PROVIDING ACUTE CARE FOR MEDICALLY STABLE BUT COMPLEX PATIENTS WHO REQUIRE LONG PERIODS OF HOSPITALIZATION. GSSH WAS THE FIRST LONG-TERM ACUTE CARE HOSPITAL IN THE LEHIGH VALLEY REGION AND WAS ONE OF THE FIRST IN THE COUNTRY TO OFFER PATIENT MONITORING BY TELE-INTENSIVISTS THROUGH STATE-OF-THE-ART TECHNOLOGY. GSSH'S PATIENTS REQUIRE EXTENSIVE NURSING CARE AND ARE OTHERWISE TOO ILL TO BE DISCHARGED TO HOME, A NURSING FACILITY, OR AN ACUTE REHABILITATION HOSPITAL. GSSH'S MAJOR PROGRAMS OF SERVICE ARE THE COMPLEX MEDICAL PROGRAM, TRANSITIONAL REHABILITATION PROGRAM AND THE PULMONARY VENTILATOR PROGRAM, WHICH TYPICALLY EXCEEDS NATIONAL VENT WEANING AVERAGES. IN FISCAL YEAR 2015, GSSH DISCHARGED A TOTAL OF 392 INPATIENTS AND HAD 10,757 TOTAL PATIENT DAYS. 14846744 1 0 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 X 0 0 0 0 0 0 0 0 0 0 0 0 0 X 8 3 0 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA FL MN X RONALD J PETULA SVP OF FINANCE & CFO 6107763228 GOOD SHEPHERD PLAZA 850 SOUTH 5TH ALLENTOWN PA 181033295 JOHN KRISTEL CHAIR/PRESIDENT/CEO 8.50 51.50 X X 0 610853 28391 SAMUEL A MIRANDA JR VICE CHAIR/SVP & CNO 5.00 55.00 X X 0 263939 61877 JAMES J DALEY MD TRUSTEE 1.00 59.00 X 0 200068 19492 PETER T ENDER MD TRUSTEE 1.00 X 0 0 0 SUSAN L LAWRENCE TRUSTEE 1.00 X 0 0 0 WILLIAM GOULD TRUSTEE 1.00 X 0 0 0 GREGORY WUCHTER TRUSTEE/ADMINISTRATOR 60.00 X 110956 0 25358 RONALD PETULA SVP & CFO 8.50 51.50 X X 0 243942 16527 DANIEL C CONFALONE SECRETARY/TREASURER/SVP & 0.00 0.00 X 0 327606 0 110956 1646408 151645 1 1 1 0 LEHIGH VALLEY HOSPITAL CEDAR CREST I-78 ALLENTOWN PA 18103 MEDICAL SERVICES 1390726 HEALTH NETWORK LABS 2024 LEHIGH STREET ALLENTOWN PA 18103 LABORATORY SERVICES 326823 SODEXHO OPERATIONS LLC 4880 PAYSPHERE CIRCLE CHICAGO IL 60674 DIETARY/FOOD SERVICES 251176 CROTHALL HEALTHCARE INC 1200 SOUTH CEDAR CREST BLVD ALLENTOWN PA 18103 HOUSEKEEPING SERVICES 159323 LVPG 2100 MACK BOULEVARD ALLENTOWN PA 18103 MEDICAL DIRECTOR FEES 110000 7 41 41 NET PATIENT SVC REV 623000 17624023 17624023 17624023 1589 1589 MEDICAL RECORDS 900099 10 10 10 17625663 17624023 0 1599 X 143138 143138 5510770 4965109 545661 228769 206125 22644 748880 674752 74128 401862 362879 38983 2188 2188 1656804 1656264 540 309216 290929 18287 722187 722187 13938 760 13178 4634 3452 1182 134884 134884 CORPORATE ALLOCATION 3581007 3581007 MEDICAL SUPPLIES 1879112 1879112 FOOD 179414 176929 2485 REPAIRS & MAINTENANCE 49787 24937 24850 135446 24280 111166 15702036 14846744 855292 0 2698637 3202854 112975 90936 2526992 2022466 545343 504526 14990683 17144149 18347638 20942465 645165 1304685 579504 591184 1224669 1895869 X 17122969 19046596 17122969 19046596 18347638 20942465 1923627 0 X X 0 1 X 1 0 X 0 0 0 0 0 0 0 0 1 2188 2188 0 PART II-B, LINE 1: THE ALLENTOWN SPECIALTY HOSPITAL, INC. HAD LOBBYING EXPENDITURES THROUGH A CERTAIN PERCENTAGE OF MEMBERSHIP FEES PAID TO THE NATIONAL ASSOCIATION OF LONG TERM HOSPITALS(NALTH) AND THE HOSPITAL AND HEALTHSYSTEM ASSOCIATION OF PA (HAP) DURING THE FISCAL YEAR ENDING JUNE 30, 2015. $2,188 WAS THE PORTION OF THE MEMBERSHIP FEES THAT WERE DEEMED TO BE USED TOWARDS LOBBYING. 190276 185611 4665 2336716 1836855 499861 504526 AMOUNTS DUE FROM AFFILIATES 17144149 17144149 ESTIMATED THIRD-PARTY PAYOR SETTLEMENTS 591184 591184 X 17606025 -19638 -19638 17625663 0 17625663 15682398 0 15682398 19638 19638 15702036 PART X, LINE 2: GOOD SHEPHERD PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY IN RECORDING TAX LIABILITIES IN THE FINANCIAL STATEMENTS. MEASUREMENT AND RECOGNITION OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. GOOD SHEPHERD'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES. GOOD SHEPHERD'S FEDERAL INCOME TAX RETURNS FOR THE YEARS ENDED PRIOR TO JUNE 30, 2012 NO LONGER REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 2D - OTHER ADJUSTMENTS: BAD DEBTS NETTED AGAINST REVENUE ON FINANCIAL STATEMENTS -19,638. PART XII, LINE 4B - OTHER ADJUSTMENTS: BAD DEBTS NETTED AGAINST REVENUE ON FINANCIAL STATEMENTS 19,638. 1 1 X 1 X 0 1 1 1 0 1 1 1094 1094 0.00010 1094 1094 0.00010 643 643 0.00000 168136 168136 0.01070 168779 168779 0.01070 169873 169873 0.01080 1 20508 2461 11081401 9628897 1452504 X 1 1 1 1 THE ALLENTOWN SPECIALTY HOSPITAL INC 850 SOUTH 5TH STREET ALLENTOWN PA 181033295 53020100 X LONG-TERM ACUTE CARE HOSPITAL THE ALLENTOWN SPECIALTY HOSPITAL INC 1 0 0 1 X X X X X X X X X 12 1 1 0 1 X WWW.GOODSHEPHERDREHAB.ORG/ABOUT/COMMUNITY-HEALTH-NEEDS-ASSESSMENT X X 1 13 1 WWW.GOODSHEPHERDREHAB.ORG/ABOUT/COMMUNITY-HEALTH-NEEDS-ASSESSMENT 0 0 1 X 200.000000000000 X X X X X 1 1 X X X 1 X WWW.GOODSHEPHERDREHAB.ORG/SITES/GOODSHEPHERDREHAB.ORG/FILES/DOCUMENT X X X X X 1 X 0 X X X X 0 X X 0 0 THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 5: THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY ("HCCLV") SHARED AND DISCUSSED SECONDARY DATA FINDINGS WITH SEVERAL KEY HEALTH EXPERTS VIA ONE-ON-ONE INTERVIEWS CONDUCTED BETWEEN MARCH AND OCTOBER 2012:- ALBERTO CARDELLE, PHD, MPH CHAIR AND PROFESSOR OF THE DEPARTMENT OF HEALTH STUDIES AT EAST STROUDSBURG UNIVERSITY'S SCHOOL OF PUBLIC HEALTH- VICKY KISTLER, DIRECTOR OF THE ALLENTOWN HEALTH BUREAU- KRISTEN WENRICH, INTERIM DIRECTOR (NOW DIRECTOR) OF THE BETHLEHEM HEALTH BUREAU- DIANE LEUTHARDT, DEVELOPMENT DIRECTOR, LEHIGH VALLEY CHAPTER OF THE AMERICAN LUNG ASSOCIATION- KAREN SCHIAVONE, SENIOR CANCER CONTROL SPECIALIST, AMERICAN CANCER SOCIETY- CARLY HOOD, SENIOR DIVISION DIRECTOR, AMERICAN HEART ASSOCIATION- MOLLY DEMARCO, PHD, MPH, CENTER FOR HEALTH PROMOTION AND DISEASE PREVENTION, UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL- ALEXANDRA LIGHTFOOT, ED. D CENTER FOR HEALTH PROMOTION AND DISEASE PREVENTION, UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL- MELVIN JACKSON, MSPH, COMMUNITY EXPERT CONSULTANT, STRENGTHENING THE BLACK FAMILY, INC.- LISSETTE LAHOZ, EXECUTIVE DIRECTOR OF NEIGHBORHOOD HEALTH CENTERS OF THE LEHIGH VALLEYCOMMUNITY LEADERS AND REPRESENTATIVES ALSO TOOK PART IN ONE-ON-ONE AND SMALL GROUP DISCUSSIONS AND LARGE COMMUNITY DIALOGUES BETWEEN SEPTEMBER AND DECEMBER 2012- PHYLLIS ALEXANDER-NEIGHBORHOOD COORDINATOR, CITY OF ALLENTOWN- ERNEST PERRY- EXECUTIVE DIRECTOR, PROMISE NEIGHBORHOODS OF THE LEHIGH VALLEY- GARY MILSBAUGH- EXECUTIVE DIRECTOR, ALLENTOWN RESCUE MISSION- PASTOR GREG EDWARDS- CEO, RESURRECTED COMMUNITY DEVELOPMENT CORPORATION- LORNA VELASQUEZ- EXECUTIVE DIRECTOR, HISPANIC CENTER LEHIGH VALLEY- JULIO GURIDY- PRESIDENT, ALLENTOWN CITY COUNCIL- KEVIN EASTERLING- EXECUTIVE DIRECTOR OF THE MARTIN LUTHER AND CORETTA SCOTT KING MEMORIAL- JOSH CHISHOLM- EXECUTIVE DIRECTOR, CONGREGATIONS UNITED FOR NEIGHBORHOOD ACTIONS- JEFF GLAZIER- ALLENTOWN CITY COUNCIL- JOSEPH ROY- SUPERINTENDENT, BETHLEHEM AREA SCHOOL DISTRICT- MARCI RONALD- VICE PRESIDENT, COMMUNITY IMPACT, UNITED WAY OF THE GREATER LEHIGH VALLEY- ANA MARTINEZ- SCHOOL OUTREACH WORKER, ALLENTOWN SCHOOL DISTRICT- ROGER HUDAK- CHAIRMAN, BETHLEHEM'S MAYOR'S SOUTH SIDE TASK FORCE- ROSS MARCUS- NORTHAMPTON COUNTY HUMAN SERVICES DIRECTOR- ANDREW WEISS- ALLENTOWN SCHOOL DISTRICT BOARD OF DIRECTORSEXTENSIVE COMMUNITY-BASED PARTICIPATORY RESEARCH (C-BPR) DIALOGUES WERE HELD IN TWO FEDERALLY-DESIGNATED MEDICALLY UNDERSERVED AREAS OF OUR REGION. FACILITATED BY NATIONAL EXPERT C-BP RESEARCHERS, FOUR 3-HOUR DIALOGUES WERE HELD WITH 170 COMMUNITY LEADERS AND MEMBERS TO DISCUSS AND PRIORITIZE HEALTH-CARE FINDINGS AND ISSUES IDENTIFIED IN THE COMMUNITY HEALTH PROFILE. THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 6A: THE HCCLV INCLUDES REPRESENTATION FROM THE DOROTHY RIDER POOL HEALTH CARE TRUST, GOOD SHEPHERD REHABILITATION NETWORK, LEHIGH VALLEY HEALTH NETWORK, SACRED HEART HEALTHCARE SYSTEM, ST. LUKE'S UNIVERSITY HOSPITAL AND HEALTH NETWORK AND THE KIDSPEACE PSYCHIATRIC HOSPITAL. THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 7D: IN NOVEMBER 2012, THE ROAD TO HEALTH, AN EASY TO NAVIGATE COMMUNITY HEALTH PROFILE (THE WRITTEN REPORT OF FINDINGS) WAS MADE WIDELY AVAILABLE TO THE PUBLIC.- AVAILABLE IN ENGLISH AND SPANISH- ELECTRONICALLY SENT TO OVER 300 STAKEHOLDERS- ACCESSIBLE ON ALL OF THE HCCLV MEMBERS' WEBSITES- OVER 400 HARD COPIES MADE AVAILABLE THROUGHOUT THE LEHIGH VALLEY- LINKS TO THE REPORT WERE PRINTED ON THE FRONT PAGE OF THE LARGEST NEWSPAPERS IN THE AREA, AS WELL AS ON ELECTRONIC VERSIONS OF THE NEWSPAPERS- THE ROAD TO HEALTH WAS ALSO SENT TO THE ELECTED OFFICIALS SERVING IN THE LEHIGH VALLEY- COPIES CAN ALSO BE REQUESTED THROUGH A DEDICATED EMAIL ACCOUNT ESTABLISHED EXCLUSIVELY FOR THE HCCLV THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 11: PRIORITIES IDENTIFIED FROM THE 2013 CHNA AND WHAT GSRN HAS OR HAS NOT ADDRESSED:A. ACCESS TO POST-ACUTE CARE- GSRN HAS CONTINUED TO FUNCTION AS THE COMMUNITY'S LEADER IN SUPPORTING DISABILITY-SPECIFIC GROUPS & SERVICE PROVIDERS, ESPECIALLY THROUGH LEADERSHIP OF THE DISABILITY FRIENDLY COMMUNITY COLLABORATIVE WHOSE MISSION IS TO ADVOCATE FOR DISABILITY RIGHTS AND CELEBRATE GREATER ACCESSIBILITY IN THE LEHIGH VALLEY. - GSRN FOSTERS THE DIRECT OR CONSULTATIVE PROVISION OF POST-ACUTE SERVICES AND LENDS STAFF EXPERTISE AND/OR SUPPORT TO DISABILITY-FOCUSED COMMUNITY ORGANIZATIONS SUCH AS THE NEIGHBORHOOD HEALTH CENTERS OF THE LEHIGH VALLEY, OUR LOCAL FQHC. - GSRN HAS PRODUCED AND DISTRIBUTED EDUCATIONAL VIDEOS, WEBINARS AND PRINT MATERIALS ABOUT POST-ACUTE HEALTH ISSUES, MEDICAL REHABILITATION, SPECIFIC DISEASES THAT CAUSE OR RESULT IN TEMPORARY OR PERMANENT DISABILITY AND CARE-GIVING RESOURCES, TO NAME BUT A FEW EXAMPLES, IN ORDER TO HELP PEOPLE WITH DISABILITIES BETTER UNDERSTAND AND MANAGE THEIR OWN AND THEIR FAMILY MEMBERS' HEALTH NEEDS. B. COLLECT & DISSEMINATE HEALTH INFORMATION- GSRN HAS NOT BEEN ABLE TO SHARE HOSPITAL UTILIZATION DATA FOR SPECIFIC DIAGNOSES WITH OTHER LOCAL NOT FOR PROFIT HOSPITAL MEMBERS OF THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY BECAUSE NOT ALL MEMBERS WERE WILLING TO RECIPROCATE.C. ADDRESS THE SOCIAL DETERMINANTS OF HEALTH & HEALTH DISPARITIES- GSRN HAS CONTINUED TO INCREASE THE NUMBER AND KINDS OF EARLY DETECTION & DISEASE OR DISABILITY-SPECIFIC SCREENING AND EDUCATIONAL PROGRAMS AND EVENTS FOR PEOPLE OF ALL AGES IN OUR COMMUNITY. SOME EXAMPLES ARE STROKE, SPINAL CORD INJURY, TRAUMATIC BRAIN INJURY, CONCUSSION, MUSCULAR DYSTROPHY AND MULTIPLE SCLEROSIS.- GSRN HAS NOT YET ESTABLISHED A POOL OF VOLUNTEER PROFESSIONALS TRAINED IN PHYSICAL, OCCUPATIONAL AND SPEECH REHABILITATION TO DEPLOY IN UNDER-SERVED PARTS OF OUR REGION ON A REGULAR BASIS AS COMMUNITY HEALTH WORKERS. D. PROMOTE HEALTHY LIFESTYLES & BEHAVIORS- GSRN CONTINUES TO WORK WITH PATIENTS, PARENTS, SIBLINGS OF PATIENTS AND CHILDREN & YOUTH AGENCIES TO EDUCATE THEM ABOUT, BUILD AWARENESS OF AND INSTILL A COMMITMENT TO SAFE & HEALTHY BEHAVIORS TO PREVENT DISABILITY. THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 13H: THE SPECIALTY HOSPITAL HAS A WRITTEN CHARITY CARE POLICY. ALL PATIENTS ARE NOTIFIED OF GOOD SHEPHERD'S CHARITY CARE AVAILABILITY PRIOR TO THE START OF THEIR CARE. GENERALLY, PATIENTS AUTOMATICALLY QUALIFY UNDER THE SPECIALTY HOSPITAL'S CHARITY CARE POLICY IF THEIR INCOME IS LESS THAN 200% OF THE CURRENT FEDERAL POVERTY GUIDELINES. HOWEVER, OTHER FACTORS ARE ALSO USED TO DETERMINE ELIGIBILITY INCLUDING:- SOURCES OF INCOME- LIVING EXPENSES- OTHER PERSONAL ASSETS AND LIABILITIES- DEMOGRAPHIC INFORMATION- ONGOING HEALTHCARE NEEDSQUALIFICATION UNDER THE SPECIALTY HOSPITAL'S CHARITY CARE POLICY ENTITLES PATIENTS TO COMPLETELY FREE CARE. THE SPECIALTY HOSPITAL DOES NOT OFFER A PROGRAM OF DISCOUNTED CHARITY CARE. HOWEVER, PATIENTS THAT DO NOT QUALIFY FOR CHARITY CARE AND HAVE NO INSURANCE ARE OFFERED A DISCOUNTED PRIVATE PAY RATE FOR SERVICES, PAYABLE AT THE TIME OF SERVICE. THE DISCOUNTED PRIVATE PAY RATE IS DETERMINED CONSIDERING THE ESTIMATED COST OF SERVICES PROVIDED. THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 22D: THE SPECIALTY HOSPITAL PROVIDES POST-ACUTE MEDICAL CARE. SERVICES PROVIDED ARE NOT CONSIDERED EMERGENCY MEDICAL CARE. WITH RESPECT TO MEDICALLY NECESSARY CARE, THE AMOUNT THAT THE SPECIALTY HOSPITAL BILLS FOR SERVICES PROVIDED TO FINANCIAL ASSISTANCE POLICY-ELIGIBLE INDIVIDUALS IS CHARGES. THEY ARE THE SAME CHARGES AS ARE BILLED TO ALL OTHER INDIVIDUALS OR THIRD-PARTY PAYORS. HOWEVER, PATIENTS THAT DO NOT QUALIFY FOR CHARITY CARE AND HAVE NO INSURANCE ARE OFFERED A DISCOUNTED PRIVATE PAY RATE FOR SERVICES, PAYABLE AT THE TIME OF SERVICE. THE DISCOUNTED PRIVATE PAY RATE IS DETERMINED CONSIDERING THE ESTIMATED COST OF SERVICES PROVIDED. PART V, SECTION B, LINE 16 FINANCIAL ASSISTANCE POLICY WEBSITE AVAILABILITY THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 16B WEBSITE: WWW.GOODSHEPHERDREHAB.ORG/SITES/GOODSHEPHERDREHAB.ORG/FILES/DOCUMENT PART I, LINE 3C: GOOD SHEPHERD LONG-TERM ACUTE SERVICES, INC., D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL (THE "SPECIALTY HOSPITAL") HAS A WRITTEN CHARITY CARE POLICY. ALL PATIENTS ARE NOTIFIED OF GOOD SHEPHERD'S CHARITY CARE AVAILABILITY PRIOR TO THE START OF THEIR CARE. GENERALLY, PATIENTS AUTOMATICALLY QUALIFY UNDER THE SPECIALTY HOSPITAL'S CHARITY CARE POLICY IF THEIR INCOME IS LESS THAN 200% OF THE CURRENT FEDERAL POVERTY GUIDELINES. HOWEVER, OTHER FACTORS ARE ALSO USED TO DETERMINE ELIGIBILITY INCLUDING:- SOURCES OF INCOME- LIVING EXPENSES- OTHER PERSONAL ASSETS AND LIABILITIES- DEMOGRAPHIC INFORMATION- ONGOING HEALTHCARE NEEDSQUALIFICATION UNDER THE SPECIALTY HOSPITAL'S CHARITY CARE POLICY ENTITLES PATIENTS TO COMPLETELY FREE CARE. THE SPECIALTY HOSPITAL DOES NOT OFFER A PROGRAM OF DISCOUNTED CHARITY CARE. HOWEVER, PATIENTS THAT DO NOT QUALIFY FOR CHARITY CARE AND HAVE NO INSURANCE ARE OFFERED A DISCOUNTED PRIVATE PAY RATE FOR SERVICES, PAYABLE AT THE TIME OF SERVICE. THE DISCOUNTED PRIVATE PAY RATE IS DETERMINED CONSIDERING THE ESTIMATED COST OF SERVICES PROVIDED. THE SPECIALTY HOSPITAL'S POLICY ALSO PROVIDES FOR CHARITY CARE FOR CERTAIN PATIENTS UNDER UNIQUE CIRCUMSTANCES. THESE CIRCUMSTANCES INCLUDE PATIENTS WHO MAY EXPERIENCE SIGNIFICANT FINANCIAL HARDSHIP OR PERSONAL FINANCIAL LOSS REGARDLESS OF THEIR INCOME, INCLUDING PATIENTS WHO MAY BE CLASSIFIED AS "MEDICALLY INDIGENT." THESE UNIQUE CIRCUMSTANCES ARE REVIEWED BY ADMINISTRATION, PURSUANT TO POLICY. THE GOOD SHEPHERD AUDITED FINANCIAL STATEMENTS PROVIDE THE FOLLOWING DISCLOSURES WITH RESPECT TO CHARITY CARE:"GOOD SHEPHERD PROVIDES A SIGNIFICANT AMOUNT OF CHARITY CARE TO PATIENTS WHO MEET CERTAIN CRITERIA REGARDLESS OF THEIR ABILITY TO PAY. THE CRITERIA FOR CHARITY CONSIDERS FAMILY SIZE, SOURCES OF INCOME, LIVING EXPENSES, NET WORTH, ONGOING HEALTHCARE NEEDS, AS WELL AS OTHER PERTINENT INFORMATION. BECAUSE GOOD SHEPHERD DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS REVENUES. GOOD SHEPHERD MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE IT PROVIDES. THE COSTS ASSOCIATED WITH THE CHARITY CARE SERVICES PROVIDED ARE ESTIMATED BY APPLYING A COST-TO-CHARGE RATIO TO THE AMOUNT OF GROSS UNCOMPENSATED CHARGES FOR THE PATIENTS RECEIVING CHARITY CARE. THE LEVEL OF CHARITY CARE PROVIDED BY GOOD SHEPHERD AMOUNTED TO APPROXIMATELY $536,000 IN 2015 AND $522,000 IN 2014. GOOD SHEPHERD RECEIVED $2,905 AND $2,450 IN CONTRIBUTIONS RESTRICTED FOR CHARITY CARE DURING 2015 AND 2014, RESPECTIVELY." PART I, LINE 6A: THE SPECIALTY HOSPITAL'S COMMUNITY BENEFIT ACTIVITIES ARE INCLUDED WITHIN AND REPORTED AS PART OF AN ANNUAL REPORT TO THE COMMUNITY, PUBLISHED ON A CONSOLIDATED BASIS BY GOOD SHEPHERD REHABILITATION NETWORK (GSRN). THIS REPORT INCLUDES THE COMMUNITY BENEFIT ACTIVITIES PROVIDED BY GSRN, AS WELL AS BY ITS CONTROLLED ENTITIES (INCLUDING THE SPECIALTY HOSPITAL). THIS REPORT IS DISTRIBUTED AND MADE AVAILABLE TO THE PUBLIC IN SEVERAL MANNERS, INCLUDING BEING AVAILABLE ON THE GSRN WEBSITE. A COMMUNITY BENEFIT REPORT IS NOT REQUIRED TO BE FILED WITH THE COMMONWEALTH OF PENNSYLVANIA AND, ACCORDINGLY, GSRN HAS NOT FILED ONE.IN ORDER TO BETTER UNDERSTAND THE ORGANIZATIONAL, FINANCIAL AND OPERATIONAL COMPLEXITIES OF THE ORGANIZATIONS CONTAINED WITHIN GSRN, THE FOLLOWING INFORMATION IS PROVIDED:THE SPECIALTY HOSPITAL'S FINANCIAL RESULTS ARE REPORTED AS A COMPONENT OF THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD). SEPARATE AUDITED FINANCIAL STATEMENTS ARE NOT PREPARED FOR THE SPECIALTY HOSPITAL. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF GOOD SHEPHERD INCLUDE THE FOLLOWING CORPORATIONS:- GOOD SHEPHERD REHABILITATION NETWORK (GSRN), THE CONTROLLING PARENT CORPORATION, FORMERLY GOOD SHEPHERD HOME- GOOD SHEPHERD REHABILITATION HOSPITAL (THE HOSPITAL)- GOOD SHEPHERD HOME LONG-TERM CARE FACILITY, INC. (LTC)- GOOD SHEPHERD LONG-TERM ACUTE SERVICES, INC., D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL (THE SPECIALTY HOSPITAL)- GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION (SUPPIL)- GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP (THE RRG)- GOOD SHEPHERD GROUP, LLC (GS GROUP)GOOD SHEPHERD'S PRIMARY OPERATIONS ARE CONDUCTED WITHIN THE HOSPITAL, WHICH PROVIDES COMPREHENSIVE INPATIENT REHABILITATION SERVICES AND OUTPATIENT REHABILITATION SERVICES AT NUMEROUS LOCATIONS. THE LTC OPERATES TWO SKILLED NURSING FACILITIES WHICH SERVICE THE NEEDS OF SEVERELY DISABLED ADULTS. THE SPECIALTY HOSPITAL PROVIDES SERVICES THAT REPRESENT THE FIRST STEP IN THE POST ACUTE CARE PROCESS OF RECOVERY. THE RRG IS A SELF INSURANCE COMPANY THAT PROVIDES PRIMARY LIABILITY INSURANCE AND RISK MANAGEMENT SERVICES. SUPPIL PROVIDES SUPPORTIVE INDEPENDENT HOUSING TO PERSONS WITH DISABILITIES UNDER SECTION 811 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. GS GROUP WAS ESTABLISHED TO DEVELOP A WHEELCHAIR DEVICE TO ASSIST REHABILITATION PATIENTS.IN ADDITION TO THE ORGANIZATIONS DESCRIBED ABOVE, IN JANUARY 2007, GSRN ENTERED INTO A JOINT VENTURE AGREEMENT WITH THE TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA (THE UNIVERSITY) TO CREATE PHILADELPHIA POST ACUTE PARTNERS, LLC D/B/A GOOD SHEPHERD PENN PARTNERS (GSPP). GSPP WAS CREATED TO ESTABLISH AND OPERATE A NEW LONG-TERM ACUTE CARE HOSPITAL, TO ASSUME THE OWNERSHIP OF AND CONTINUE TO OPERATE ALL OF THE OUTPATIENT OPERATIONS OF THE UNIVERSITY, TO CARRY OUT THE DAY-TO-DAY OPERATIONS OF THE HOSPITAL OF THE UNIVERSITY OF PENNSYLVANIA'S (HUP'S) INPATIENT REHABILITATION UNIT, AND TO PROVIDE THE UNIVERSITY AND ITS AFFILIATES WITH CERTAIN CLINICAL AND/OR STAFFING SERVICES RELATING TO REHABILITATION. GSRN IS A 70% OWNER OF GSPP; HOWEVER, THE OPERATIONS OF GSPP ARE NOT CONSOLIDATED WITHIN THE CONSOLIDATED FINANCIAL STATEMENTS OF GOOD SHEPHERD AS GSRN IS NOT DEEMED TO HAVE CONTROL OVER GSPP. AS A RESULT, GSRN RECORDS THEIR INVESTMENT IN GSPP UNDER THE EQUITY METHOD OF ACCOUNTING WITHIN THE GSRN CONSOLIDATED FINANCIAL STATEMENTS. PART I, LINE 7: THE SPECIALTY HOSPITAL USED A COST-TO-CHARGE RATIO IN DETERMINING THE FIGURES REPORTED IN THIS TABLE. THIS COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2 RATIO OF PATIENT CARE COST-TO CHARGES. PART I, LN 7 COL(F): THE AMOUNT OF BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $19,638. PART II, COMMUNITY BUILDING ACTIVITIES: WHILE MINIMAL COMMUNITY BUILDING ACTIVITIES ARE PROVIDED DIRECTLY WITHIN THE SPECIALTY HOSPITAL, GSRN, THE SPECIALTY HOSPITAL'S PARENT COMPANY, PROVIDED $15,245 OF SUCH ACTIVITIES DURING THE 2015 FISCAL YEAR. THESE ACTIVITIES TOOK THE FORM OF EXECUTIVE AND GOVERNMENT AND COMMUNITY RELATIONS BOARD MEMBERSHIPS, PARTICIPATION IN THE PARTNERSHIP FOR A DISABILITY FRIENDLY COMMUNITY, AMERICAN MEDICAL REHABILITATION PROVIDERS ASSOCIATION (AMRPA) BOARD AND UNITED WAY BOARD AND COMMITTEE MEMBERSHIPS AS WELL AS VARIOUS WORKFORCE DEVELOPMENT ACTIVITIES.THESE ACTIVITIES WERE NOT PROVIDED FOR PURPOSES OF MARKETING, TO INCREASE REFERRALS OF PATIENTS WITH THIRD-PARTY INSURANCE COVERAGE, IN FULFILLMENT OF REGULATORY REQUIREMENTS OR CURRENT STANDARDS OF CARE, OR TO BENEFIT PERSONS AFFILIATED WITH GSRN. RATHER, THE PRIMARY PURPOSE OF THESE COMMUNITY BUILDING ACTIVITIES IS TO BENEFIT THE COMMUNITY AND SHOULD BE CONSIDERED AS A COMPONENT OF COMMUNITY BENEFIT. FOR EXAMPLE, PARTICIPATION IN THE PARTNERSHIP FOR A DISABILITY FRIENDLY COMMUNITY DIRECTLY BENEFITS THE DISABILITY COMMUNITY. SPECIFICALLY, THE PARTNERSHIP EDUCATES AND EMPOWERS INDIVIDUALS WITH DISABILITIES AND THEIR CAREGIVERS TO BETTER CARE FOR THEMSELVES AND TO IDENTIFY AND UTILIZE RESOURCES THAT ARE ALREADY AVAILABLE TO THEM WITHIN THE COMMUNITY. WITHOUT SUCH EDUCATION AND EMPOWERMENT, THERE IS A RISK THAT THOSE INDIVIDUALS WITH DISABILITIES EITHER DO NOT RECEIVE THE CARE OR ASSISTANCE THEY REQUIRE, OR THEY OVER-RELY ON THE SERVICES OF THE MEDICAL COMMUNITY FOR EVEN THE MOST BASIC OF NEEDS. THE VALUE OF THE COMMUNITY BUILDING ACTIVITIES PROVIDED DURING THE 2015 FISCAL YEAR WAS DETERMINED BASED UPON ACTUAL REPORTED HOURS VALUED AT THE AVERAGE SALARY AND BENEFIT RATE PER HOUR OF ALL GOOD SHEPHERD EMPLOYEES. CONSERVATIVELY, NO APPLICATION OF INDIRECT OR OVERHEAD COSTS WAS APPLIED TO THESE DIRECT COSTS.ALL GSRN COSTS, INCLUSIVE OF THE COSTS ASSOCIATED WITH COMMUNITY BUILDING ACTIVITIES, ARE ALLOCATED TO GSRN'S SUBSIDIARY CORPORATIONS BASED UPON A COMPREHENSIVE ALLOCATION METHODOLOGY WHICH CONSIDERS DEPARTMENTAL RESOURCE UTILIZATION AND RELATIVE NET PATIENT SERVICE REVENUE, AMONG OTHER FACTORS. PART III, LINE 2: TOTAL BAD DEBT EXPENSE (AT COST) WAS DETERMINED BY APPLYING THE COST-TO-CHARGE RATIO, DERIVED FROM WORKSHEET 2 RATIO OF PATIENT CARE COST-TO CHARGES TO TOTAL THE NET OF ACTUAL BAD DEBT WRITE-OFF'S AND RECOVERIES PROCESSED DURING THE 2015 FISCAL YEAR. PART III, LINE 3: TOTAL BAD DEBT EXPENSE (AT COST), PER PART III, SECTION A, LINE 2, WAS USED AS A STARTING POINT. THEN, THE ESTIMATED POVERTY PERCENTAGE (12%), OF THE SPECIALTY HOSPITAL'S 5-COUNTY PRIMARY SERVICE AREA, WAS DETERMINED BASED UPON THE EXAMINATION OF COMMONWEALTH OF PENNSYLVANIA REPORTS, GENERATED FROM THE MOST RECENTLY-PUBLISHED US CENSUS DATA. PART III, LINE 4: THE FOLLOWING IS THE TEXT OF THE FOOTNOTE TO GOOD SHEPHERD'S AUDITED FINANCIAL STATEMENTS (WHICH CONTAIN THE ACCOUNTS OF THE HOSPITAL) THAT DESCRIBES BAD DEBT EXPENSE:"ACCOUNTS RECEIVABLE, PATIENTS ARE REPORTED AT NET REALIZABLE VALUE. ACCOUNTS ARE WRITTEN-OFF WHEN THEY ARE DETERMINED TO BE UNCOLLECTIBLE BASED UPON MANAGEMENT'S ASSESSMENT OF INDIVIDUAL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF PATIENT ACCOUNTS RECEIVABLE, GOOD SHEPHERD ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, GOOD SHEPHERD ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY. FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS, GOOD SHEPHERD RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE BILLED RATES AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS.GOOD SHEPHERD'S ALLOWANCE FOR DOUBTFUL ACCOUNTS FOR SELF-PAY PATIENTS INCREASED FROM 58% OF SELF-PAY ACCOUNTS RECEIVABLE AT JUNE 30, 2014, TO 67% OF SELF-PAY ACCOUNTS RECEIVABLE AT JUNE 30, 2015. IN ADDITION, GOOD SHEPHERD'S SELF-PAY ACCOUNT WRITE-OFFS (NET OF RECOVERIES) INCREASED FROM $341,000 IN 2014 TO $642,000 IN 2015. GOOD SHEPHERD DID NOT CHANGE THEIR FINANCIAL ASSISTANCE POLICY IN 2015 AND 2014. GOOD SHEPHERD DOES NOT MAINTAIN A MATERIAL ALLOWANCE FOR DOUBTFUL ACCOUNTS FROM THIRD-PARTY PAYORS, NOR DID IT HAVE SIGNIFICANT WRITE-OFFS FROM THIRD-PARTY PAYORS." PART III, LINE 8: THE COSTING METHODOLOGY UTILIZED IN THE DETERMINATION OF THE MEDICARE ALLOWABLE COSTS REPORTED IN THE SPECIALTY HOSPITAL'S COST REPORT IS QUITE COMPREHENSIVE. DIRECTLY ALLOCATED COSTS ARE USED AS A STARTING POINT AND OTHER COSTS ARE STEPPED-DOWN TO THE SPECIALTY HOSPITAL BASED UPON INDUSTRY-ACCEPTABLE ALLOCATION METHODOLOGIES. THE SPECIALTY HOSPITAL HAS NOT REPORTED A MEDICARE SHORTFALL IN PART III, SECTION B (MEDICARE), LINE 7. HAD THERE BEEN A SHORTFALL, IT SHOULD BE CONSIDERED AS A COMPONENT OF COMMUNITY BENEFIT BECAUSE THE SPECIALTY HOSPITAL TREATS ALL MEDICALLY NECESSARY PATIENTS, REGARDLESS OF THEIR ABILITY TO PAY AND REGARDLESS OF WHETHER THE EXPECTED REIMBURSEMENT IS ADEQUATE TO COVER ALL RELATED AND NECESSARY EXPENSES. PART III, LINE 9B: THE SPECIALTY HOSPITAL HAS A WRITTEN BILLING AND COLLECTION POLICY AND SUCH POLICY COVERS THE PROCEDURES NECESSARY TO BILL AND COLLECT FOR THE MEDICAL SERVICES PROVIDED TO PATIENTS. PATIENTS KNOWN TO QUALIFY FOR FINANCIAL ASSISTANCE UNDER THE SPECIALTY HOSPITAL'S CHARITY CARE POLICY (AS EVIDENCED BY A PROPERLY COMPLETED AND APPROVED CHARITY CARE APPLICATION) ARE NOT SUBJECT TO THE COLLECTION PROVISIONS OF THIS POLICY. RATHER, THEIR ACCOUNT BALANCES ARE WRITTEN-OFF FROM THE PATIENT ACCOUNTING RECORDS AS CHARITY CARE. IN INSTANCES WHERE THE HOSPITAL BELIEVES A PATIENT MAY QUALIFY FOR CHARITY CARE AND THE PATIENT DOES NOT OR CAN NOT COMPLETE THE REQUIRED CHARITY CARE APPLICATION, THE HOSPITAL MAKES REASONABLE EFFORTS TO INDEPENDENTLY SUPPORT THE APPROPRIATE WRITE-OFF OF THE PATIENT ACCOUNT BALANCES AS CHARITY CARE. IN INSTANCES WHERE REASONABLE EFFORTS ARE INSUFFICIENT OR INCONCLUSIVE TO SUPPORT THE APPROPRIATE WRITE-OFF OF THE PATIENT ACCOUNT BALANCES AS CHARITY CARE, THE PATIENT ACCOUNT BALANCES BECOME SUBJECT TO THE COLLECTION PROVISIONS OF THE HOSPITAL'S BILLING AND COLLECTION POLICY. PART VI, LINE 2: IN 2012, THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY (HCCLV) WAS FORMED TO MEASURE AND IMPROVE THE BROADLY DEFINED HEALTH OF THE LEHIGH VALLEY. CREATED BY THE NOT-FOR-PROFIT HEALTH CARE SYSTEMS OF THE LEHIGH VALLEY, HCCLV'S OBJECTIVE IS TO COOPERATIVELY DEVELOP A WORLD-CLASS COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) PROCESS AND PRODUCE A JOINT ACTION PLAN THAT WILL GALVANIZE AND COORDINATE ACTION TO PROVIDE A DRAMATIC, DEMONSTRABLE AND SUSTAINED IMPACT ON THE HEALTH OF THE CITIZENS OF THE LEHIGH VALLEY.GSRN'S PARTICIPATION IN THE JOINT CHNA IS PRIMARILY FOCUSED ON ADDRESSING THE NEEDS OF PERSONS WITH DISABILITIES AND THOSE WITH MEDICAL REHABILITATION NEEDS. THE COORDINATED CHNA PROCESS PROVIDES THE NOT-FOR-PROFIT HEALTH CARE SYSTEMS THE OPPORTUNITY TO FULFILL THE REQUIREMENT OF SECTION 9007 OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT OF 2010 TO PERFORM A CHNA EVERY THREE YEARS COMMENCING WITH THE HOSPITAL'S FIRST FISCAL YEAR AFTER THE EFFECTIVE DATE OF IRC SECTION 501(R)(3). PARTICIPATION IN THE COORDINATED CHNA PROCESS ALSO ENABLES EACH HOSPITAL TO RESPOND AFFIRMATIVELY TO THE CHNA-RELATED QUESTIONS LISTED UNDER SCHEDULE H, PART V.ASIDE FROM THE CHNA PERFORMED EVERY THREE YEARS, GOOD SHEPHERD ASSESSES MARKET POTENTIAL AND DEMAND FOR SERVICES THROUGHOUT VARIOUS REGIONS. ON AVERAGE, THESE ASSESSMENTS ARE PERFORMED ON AN ANNUAL BASIS AND DO NOT SPECIFICALLY TARGET NEEDS BUT RATHER OPPORTUNITIES TO EXPAND SERVICE TO OTHER AREAS IN NEED. PART VI, LINE 3: 1) GOOD SHEPHERD'S MISSION IS AS FOLLOWS:"MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION."GOOD SHEPHERD VIGOROUSLY PURSUES THEIR MISSION REGARDLESS OF A PATIENT'S ABILITY TO PAY.2) IN EACH INPATIENT ROOM, GOOD SHEPHERD PROVIDES A REFERENCE BINDER OF IMPORTANT INFORMATION TO ALL INPATIENTS. THIS BINDER SUPPLEMENTS THE PATIENT'S ADMISSIONS PACKAGE AND INCLUDES A NOTICE OF FINANCIAL AID WHICH INCLUDES THE FOLLOWING WORDING:"IF YOU HAVE LITTLE OR NO HEALTH INSURANCE TO PAY FOR THE SERVICES YOU RECEIVE FROM GOOD SHEPHERD AND WORRY THAT YOU MAY NOT BE ABLE TO PAY FOR PART OR ALL OF YOUR CARE, WE MAY BE ABLE TO HELP. GOOD SHEPHERD PROVIDES CHARITY CARE TO PATIENTS BASED ON THEIR INCOME, ASSETS AND FINANCIAL NEEDS. IN ADDITION, IF YOU DO NOT MEET THE CRITERIA TO BE ELIGIBLE FOR CHARITY CARE, WE WILL HELP YOU ARRANGE FOR AN INTEREST-FREE PAYMENT PLAN TO RESOLVE ANY BALANCES YOU OWE."3) CHARITY CARE INFORMATION IS AVAILABLE ON THE GOOD SHEPHERD WEBSITE. IN PARTICULAR, PATIENTS MAY ACCESS A COPY OF THE NOTICE OF FINANCIAL AID AND A CHARITY CARE APPLICATION.4) GOOD SHEPHERD PUBLISHES AND DISTRIBUTES A NOTICE OF PAYMENT RESPONSIBILITY TO ALL PATIENTS. THE FIRST PARAGRAPH OF THIS FORM STATES THE FOLLOWING:"GOOD SHEPHERD IS A NON-PROFIT CHARITABLE ORGANIZATION THAT PROVIDES HEALTHCARE SERVICES TO ALL MEDICALLY APPROPRIATE PATIENTS WHO SEEK CARE REGARDLESS OF THEIR FUNDS TO PAY FOR SERVICES. THIS INCLUDES THE UNINSURED AND THE UNDER INSURED."THE NOTICE GOES ON TO STATE:"IT HAS BEEN BROUGHT TO OUR ATTENTION THAT YOU POTENTIALLY LACK THE FINANCIAL RESOURCES TO PAY FOR YOUR MEDICAL CARE. YOUR ADMISSION TO GOOD SHEPHERD IS CONTINGENT UPON YOUR ASSISTANCE IN HELPING US SECURE PAYMENT OF YOUR MEDICAL BILL FOR THE CARE BEING PROVIDED TO YOU. TO ADDRESS THE PAYMENT OF YOUR BILL, WE ARE REQUESTING THAT YOU APPLY FOR MEDICAL ASSISTANCE BENEFITS THROUGH THE PENNSYLVANIA MEDICAID PROGRAM AND APPLY FOR GOOD SHEPHERD'S CHARITY CARE PROGRAM."5) EACH PATIENT BILL OR STATEMENT INCLUDES THE FOLLOWING STATEMENT:"THE GOOD SHEPHERD SPECIALTY HOSPITAL IS A NON-PROFIT ORGANIZATION AND OFFERS CHARITY CARE TO THOSE WHO QUALIFY. IF YOU DO NOT HAVE THE FUNDS TO PAY, PLEASE CONTACT US."6) TRANSLATION SERVICES ARE AVAILABLE TO ANY NON-ENGLISH-SPEAKING PATIENT. THESE SERVICES ALSO INCLUDE ASSISTANCE WITH CHARITY CARE ELIGIBILITY AND OTHER FINANCIAL MATTERS. 7) AS PART OF INTERNAL DEPARTMENTAL ORIENTATION AND TRAINING, ADMISSIONS, CARE MANAGEMENT AND PATIENT ACCOUNTING PERSONNEL ARE TRAINED IN GOOD SHEPHERD'S CHARITY CARE POLICIES AND PROCEDURES. PART VI, LINE 4: BASED UPON PA HEALTH CARE COST CONTAINMENT COUNCIL DATA FOR THE 2014 CALENDAR YEAR, THE HOSPITAL'S PRIMARY SERVICE AREA IS COMPRISED OF THE FOLLOWING FIVE PENNSYLVANIA COUNTIES. IN ADDITION, THE HOSPITAL'S MARKET SHARE PERCENTAGE IS INDICATED FOR EACH COUNTY WITHIN ITS PRIMARY SERVICE AREA.GSSH - LEHIGH - 94%NORTHAMPTON - 95%CARBON - 71%MONROE - 77%BERKS - 35%LEHIGH, NORTHAMPTON AND BERKS COUNTIES ARE A MIX OF URBAN, SUBURBAN AND RURAL COMMUNITIES WHILE CARBON AND MONROE COUNTIES ARE PRIMARILY RURAL. THE FOLLOWING HOSPITALS ARE LOCATED WITHIN EACH OF THESE COUNTIES:CARBON COUNTYTWO (2) NOT-FOR-PROFIT ACUTE CARE HOSPITALSLEHIGH COUNTYFIVE (5) NOT-FOR-PROFIT ACUTE CARE HOSPITALS TWO (2) NOT-FOR-PROFIT INPATIENT REHABILITATION HOSPITALS (THE HOSPITAL - NOTE ONE LICENSE IN TWO LOCATIONS)ONE (1) NOT-FOR-PROFIT LONG-TERM ACUTE CARE HOSPITAL (THE SPECIALTY HOSPITAL)TWO (2) SPECIALTY GENERAL ACUTE CARE HOSPITALS- ONE (1) FOR-PROFIT SPECIALTY GENERAL ACUTE CARE HOSPITAL L AND ONE (1) NOT-FOR-PROFIT SPECIALTY GENERAL ACUTE CARE HOSPITAL NORTHAMPTON COUNTY TWO ACUTE CARE HOSPITALS - ONE (1) FOR-PROFIT ACUTE CARE HOSPITAL AND ONE (1) NOT-FOR-PROFIT ACUTE CARE HOSPITALONE (1) FOR-PROFIT SPECIALTY GENERAL ACUTE CARE HOSPITALMONROE COUNTYONE (1) NOT-FOR-PROFIT ACUTE CARE HOSPITALBERKS COUNTYTHREE (3) NOT-FOR-PROFIT ACUTE CARE HOSPITALS- NOTE TWO FACILITIES SHARE ONE LICENSEONE (1) FOR-PROFIT INPATIENT REHABILITATION HOSPITALONE (1) FOR-PROFIT SPECIALTY GENERAL ACUTE CARE HOSPITALTHESE COUNTIES HAVE THE FOLLOWING DEMOGRAPHICS AND CHARACTERISTICS:1. AVERAGE INCOME LEVEL AND POVERTY RATES (US CENSUS 2014 ESTIMATES MEDIAN HOUSEHOLD INCOME AND POPULATION PERCENTAGE BELOW THE POVERTY LEVEL)CARBON COUNTY - $49,913 AND 13.0%LEHIGH COUNTY - $55,681 AND 12.8% NORTHAMPTON COUNTY - $61,041 AND 10.0%MONROE COUNTY - $57,748AND 13.3%BERKS COUNTY - $55,798 AND 14.3%2. RATES OF UNINSURED OR UNDERINSURED PERSONS (US CENSUS 2014 ESTIMATES)CARBON COUNTY - 6,757 INDIVIDUALS OR 10.5% OF THE COUNTY POPULATIONLEHIGH COUNTY - 37,597 INDIVIDUALS OR 10.7% OF COUNTY POPULATIONNORTHAMPTON COUNTY - 24,831 INDIVIDUALS OR 8.4% OF THE COUNTY POPULATIONMONROE COUNTY - 20,334 INDIVIDUALS OR 12.2% OF THE COUNTY POPULATIONBERKS COUNTY - 41,038 INDIVIDUALS OR 10.1% OF THE COUNTY POPULATION3. PERCENT OF FAMILIES WHO ARE ELIGIBLE FOR MEDICAL ASSISTANCE (PA DOH-LATEST AVAILABLE DATA) CARBON COUNTY -2011 PERCENTAGE ELIGIBLE FOR MEDICAL ASSISTANCE - 15.0%LEHIGH COUNTY -2011 PERCENTAGE ELIGIBLE FOR MEDICAL ASSISTANCE - 16.9%NORTHAMPTON COUNTY -2011 PERCENTAGE ELIGIBLE FOR MEDICAL ASSISTANCE - 12.6%MONROE COUNTY -2011 PERCENTAGE ELIGIBLE FOR MEDICAL ASSISTANCE - 16.1%BERKS COUNTY -2011 PERCENTAGE ELIGIBLE FOR MEDICAL ASSISTANCE - 17.8%4. POPULATION AGE BREAKDOWN (2014 ESTIMATED PENNSYLVANIA POPULATION > AGE 65 IS 16.7%)CARBON COUNTY - POPULATION > AGE 65 - 19.7%LEHIGH COUNTY - POPULATION > AGE 65 - 16.0%NORTHAMPTON COUNTY - POPULATION > AGE 65 - 17.4%MONROE COUNTY - POPULATION > AGE 65 - 15.1%BERKS COUNTY - POPULATION > AGE 65 - 15.9%5. PERCENTAGES OF NON-ENGLISH-SPEAKING POPULATIONSCARBON COUNTY - DATA UNAVAILABLE FROM CENSUSLEHIGH COUNTY - PERCENT OF POPULATION NOT PROFICIENT IN ENGLISH; 3.9% NORTHAMPTON COUNTY - PERCENT OF POPULATION NOT PROFICIENT IN ENGLISH; 1.8% MONROE COUNTY - PERCENT OF POPULATION NOT PROFICIENT IN ENGLISH; 1.5% BERKS COUNTY - PERCENT OF POPULATION NOT PROFICIENT IN ENGLISH; 3.6% 6. AREAS DESIGNATED AS FEDERALLY MEDICALLY UNDERSERVED AREAS OR POPULATIONS (DECEMBER, 2015)CARBON COUNTY- BOROUGHS OF: LANSFORD, NESQUEHONING, AND SUMMIT HILL LEHIGH COUNTY - ALLENTOWN SERVICE AREA - CT 0004.00 AND CT 0005.00NORTHAMPTON COUNTY -EASTON SERVICE AREA - CT: 144.00 AND SOUTH BETHLEHEM SERVICE AREA -CT: 109-113MONROE COUNTY - STROUDSBURG BOROUGH (MDC 74888) BERKS COUNTY - CITY OF READING SERVICE AREAS - CT: 1, 2, 10, 11, 13, 14, 17, 19, 21, 22, 23 AND 257. SPECIAL POPULATIONS WITHIN THE AREA SERVED, INCLUDING ETHNIC AND CULTURAL GROUPSCARBON COUNTY - BACHELOR'S DEGREE OR HIGHER, PCT OF PERSONS AGE 25+ 14.9% VS.28.1% IN PALEHIGH COUNTY - HISPANIC OR LATINO POPULATION - 20.3% VS. 6.1% IN PANORTHAMPTON COUNTY - HISPANIC OR LATINO POPULATION - 11.3% VS. 6.1% IN PAMONROE COUNTY - HISPANIC OR LATINO POPULATION - 13.9% VS. 6.1% IN PABERKS COUNTY - HISPANIC OR LATINO POPULATION - 17.6% VS. 6.1% IN PASOURCES: #1, 2, 4, & 7 US CENSUS STATE AND COUNTY QUICK FACTS; #3 PA DOH COUNTY HEALTH REPORTS(2013 REPORT, BUT 2011 DATA; MORE CURRENT UPDATES APPEAR UNAVAILABLE); #5 COUNTY HEALTH RANKINGS RWJ FOUNDATION 2015 REPORT; #6 US DEPT HEALTH & HUMAN SERVICES- HEALTH RESOURCES AND SERVICE ADMINISTRATION. PART VI, LINE 5: WITH RESPECT TO HOW THE SPECIALTY HOSPITAL FURTHERS ITS EXEMPT PURPOSE BY PROMOTING THE HEALTH OF THE COMMUNITY, THE FOLLOWING INFORMATION IS PROVIDED:1) THE GSRN BOARD OF TRUSTEES GOVERNS ALL OF THE ENTITIES DESCRIBED IN PART I, LINE 6A (INCLUDING THE SPECIALTY HOSPITAL). THE GSRN BOARD OF TRUSTEE MEMBERS (BOARD MEMBERS) ALL LIVE IN THE SPECIALTY HOSPITAL'S PRIMARY SERVICE AREA AS DEFINED IN PART VI (SUPPLEMENTAL INFORMATION), LINE 4. THE VAST MAJORITY OF THE BOARD MEMBERS ARE NOT EMPLOYEES OR CONTRACTORS OF THE SPECIALTY HOSPITAL. NONE OF THE BOARD MEMBERS ARE FAMILY MEMBERS.2) THE SPECIALTY HOSPITAL ALSO MAINTAINS A SEPARATE BOARD OF TRUSTEES. ALL OF THE MEMBERS OF THIS SEPARATE BOARD LIVE IN THE SPECIALTY HOSPITAL'S PRIMARY SERVICE AND MOST ARE MANAGEMENT EMPLOYEES OF THE SPECIALTY HOSPITAL.3) THE SPECIALTY HOSPITAL EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS PRIMARY SERVICE AREA. ALL APPLICANTS ARE APPROVED BY THE SPECIALTY HOSPITAL'S MEDICAL EXECUTIVE COMMITTEE. 4) THE SPECIALTY HOSPITAL PARTICIPATES IN THE MEDICARE, CHAMPUS, TRICARE AND OTHER GOVERNMENT SPONSORED HEALTHCARE PROGRAMS.5) THE COMMONWEALTH OF PENNSYLVANIA DOES NOT RECOGNIZE THE LONG-TERM ACUTE CARE HOSPITAL LEVEL OF SERVICE. ACCORDINGLY, THE SPECIALTY HOSPITAL DOES NOT PARTICIPATE IN THE PENNSYLVANIA MEDICAID PROGRAM. HOWEVER, PATIENTS THAT QUALIFY FOR THE PENNSYLVANIA MEDICAID PROGRAM WOULD ALSO MEET GOOD SHEPHERD'S CHARITY CARE CRITERIA. FINALLY, THE SPECIALTY HOSPITAL ACCEPTS MEDICAID PATIENTS FROM OTHER STATES.6) THE SPECIALTY HOSPITAL OPERATES IN A PRIMARY SERVICE AREA, WHICH INCLUDES ONLY ONE OTHER FREE-STANDING LONG-TERM ACUTE CARE HOSPITAL (A FOR-PROFIT FACILITY).7) TO THE EXTENT THE SPECIALTY HOSPITAL GENERATES SURPLUS OPERATING MARGINS AND/OR FREE CASH FLOW, THE AMOUNTS ARE COMPLETELY REINVESTED WITHIN THE SPECIALTY HOSPITAL AND/OR THE OTHER AFFILIATED CORPORATIONS UNDER THE CONTROL OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN). SUCH REINVESTMENT CAN TAKE THE FORM OF INFRASTRUCTURE IMPROVEMENTS, INVESTMENTS IN MEDICAL EQUIPMENT AND TECHNOLOGY, OR OTHER INVESTMENTS INTENDED TO ENHANCE PATIENT SATISFACTION, IMPROVE THE QUALITY OF CARE, CONFORM WITH SAFETY CODES OR REGULATIONS, ETC.8) THE SPECIALTY HOSPITAL AND OTHER AFFILIATED CORPORATIONS UNDER THE CONTROL OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN) ARE INVOLVED IN HEALTH PROFESSIONS EDUCATION, PARTICULARLY FOR NURSING AND THERAPY. PART VI, LINE 6: WITHIN THE GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD), THE GOOD SHEPHERD REHABILITATION HOSPITAL (THE HOSPITAL), PROVIDES "CHARITY CARE AND CERTAIN OTHER COMMUNITY BENEFITS AT COST" AS REPORTED ON THEIR SCHEDULE H TO FORM 990. THESE AMOUNTS AGGREGATE $11,366,440 OR APPROXIMATELY 13.4% OF THE HOSPITAL'S EXPENSES. THROUGH ITS GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION (SUPPIL) SUBSIDIARY, GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD), PROVIDES SUPPORTIVE INDEPENDENT HOUSING TO PERSONS WITH DISABILITIES UNDER SECTION 811 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. THESE SERVICES WERE OPERATED AT A LOSS, WHICH TOTALED $137,820 FOR THE FISCAL YEAR ENDED JUNE 30, 2015, AND WHICH WAS FUNDED BY GOOD SHEPHERD. THE LOSS WAS DETERMINED AFTER REDUCING SUPPIL RENTAL REVENUE AND OTHER INCOME BY THE DIRECTLY ASSIGNED EXPENSES INCURRED TO OPERATE THE PROGRAM.GSRN IS A 70% OWNER OF GSPP; HOWEVER, THE OPERATIONS OF GSPP ARE NOT CONSOLIDATED WITHIN THE CONSOLIDATED FINANCIAL STATEMENTS OF GOOD SHEPHERD AS GSRN IS NOT DEEMED TO HAVE CONTROL OVER GSPP. AS A RESULT, GSRN RECORDS THEIR INVESTMENT IN GSPP UNDER THE EQUITY METHOD OF ACCOUNTING WITHIN THE GSRN CONSOLIDATED FINANCIAL STATEMENTS. THROUGH ITS OWNERSHIP IN THE GSPP UNCONSOLIDATED AFFILIATE, GSRN PROVIDES THE FOLLOWING COMMUNITY BENEFITS, WHICH TOTAL TO $4,319,791:FINANCIAL ASSISTANCE AT COST $ 403,791UNREIMBURSED MEDICAID 2,882,000COMMUNITY HEALTH IMPROVEMENT SERVICES 96,000HEALTH PROFESSIONS EDUCATION 826,000RESEARCH 105,000COMMUNITY BUILDING ACTIVITIES 6,000SUBSIDIZED HEALTH SERVICES 0COMMUNITY BENEFIT OPERATIONS 1,000TOTAL $4,319,791THESE AMOUNTS ARE REPORTED ABOVE AT THEIR FULL COST ALTHOUGH GOOD SHEPHERD HAS A 70% OWNERSHIP INTEREST IN GSPP. PART VI, LINE 7 N/A 1 1 0 0 0 0 0 1 0 JOHN KRISTEL CHAIR/PRESIDENT/CEO 0 443652 0 167201 0 0 0 13950 0 14441 0 639244 0 0 SAMUEL A MIRANDA JR VICE CHAIR/SVP & CNO 0 227723 0 36216 0 0 0 50612 0 11265 0 325816 0 0 JAMES J DALEY MD TRUSTEE 0 200068 0 0 0 0 0 4996 0 14496 0 219560 0 0 RONALD PETULA SVP & CFO 0 204453 0 39489 0 0 0 6092 0 10435 0 260469 0 0 DANIEL C CONFALONE SECRETARY/TREASURER/SVP & 0 0 0 0 0 327606 0 0 0 0 0 327606 0 0 PART I, LINE 3 THE CEO IS COMPENSATED BY GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), AN AFFILIATED TAX-EXEMPT ORGANIZATION. THE ALLENTOWN SPECIALTY HOSPITAL, INC. RELIED ON GSRN'S USE OF ALL CRITERIA SPECIFIED IN LINE 3 TO ESTABLISH COMPENSATION EXCEPT FOR REVIEW OF WRITTEN EMPLOYMENT CONTRACTS. PART I, LINES 4A-B DANIEL CONFALONE - $327,606 SEVERANCE IN CALENDAR YEAR 2014, THERE WAS ONE EMPLOYEE PARTICIPATING IN A SERP PLAN (SAMUEL MIRANDA). CONTRIBUTIONS OF $37,953 WERE MADE DURING THE YEAR. AT THE END OF 2014, THE SERP PLAN WAS TERMINATED AND THE FUND BALANCE WAS TRANSFERRED OUT. PART I, LINE 7 GSRN HAS A PERFORMANCE COMPENSATION PROGRAM IN PLACE WHICH IS APPROVED BY THE BOARD. CERTAIN MEMBERS OF MANAGEMENT CAN RECEIVE AN ANNUAL PERFORMANCE PAYMENT ONLY WHEN PRE-DEFINED AND PRE-APPROVED FINANCIAL AND NON-FINANCIAL GOALS ARE ACHIEVED. FOR FISCAL YEAR 2015, A PERFORMANCE PAYMENT WAS ACHIEVED. THE ACTUAL PAYMENT OCCURS IN OCTOBER OF THE FOLLOWING FISCAL YEAR. THIS IS NOT GUARANTEED EACH YEAR. FORM 990, PART V, LINE 1: ACCOUNTS PAYABLE PAYMENTS ARE CONSOLIDATED UNDER A COMMON REPORTING SYSTEM. SINCE TOTALS FOR EACH VENDOR MAY CONTAIN TRANSACTIONS FROM MULTIPLE CORPORATIONS, THE NUMBER OF 1099'S FILED ON BEHALF OF THE ALLENTOWN SPECIALTY HOSPITAL, INC. BY THE COMMON REPORTING AGENT CANNOT BE SEPARATELY IDENTIFIED AND DETERMINED. FORM 990, PART V, LINE 2: THE SALARY AND BENEFIT EXPENSES REPORTED ON FORM 990, PART IX, AND THE EMPLOYEE INFORMATION REPORTED ON FORM 990, PART VII, ARE THE ALLENTOWN SPECIALTY HOSPITAL, INC. D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL - ALLENTOWN'S ("GSSH") ALLOCATED PAYROLL COSTS BASED ON TIME SPENT. ALL INDIVIDUALS WORKING AT GSSH ARE EMPLOYEES OF THE GOOD SHEPHERD REHABILITATION HOSPITAL ("GSRH") AND ARE REPORTED ON ITS FORM W-3 UNDER EIN: 23-1371947. GSRH IS AN AFFILIATED TAX-EXEMPT ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A THE SOLE CORPORATE MEMBER OF THE ORGANIZATION IS THE GOOD SHEPHERD LONG TERM ACUTE CARE SERVICES, INC. ("LTACS"). THE SOLE CORPORATE MEMBER OF LTACS IS THE GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), A RELATED TAX-EXEMPT ENTITY. THE GOVERNING BOARD OF THE ORGANIZATION SHALL BE APPOINTED BY THE BOARD OF GSRN. IN ADDITION, ANY AMENDMENTS TO THE ORGANIZATION'S BYLAWS MUST BE APPROVED BY THE BOARD OF LTACS. FORM 990, PART VI, SECTION A, LINE 7B SEE EXPLANATION FOR FORM 990, PART VI, SECTION A, LINE 7A. FORM 990, PART VI, SECTION B, LINE 11 THE IRS FORM 990 IS PREPARED USING INFORMATION SOLICITED FROM OFFICERS, DIRECTORS, TRUSTEES, BOARD COMMITTEE MEMBERS, AND MANAGEMENT. THIS GROUP OF INDIVIDUALS ARE PROVIDED A DRAFT RETURN BEFORE THE FINAL RETURN IS FILED. QUESTIONS, COMMENTS, AND ADDITIONAL INFORMATION PROVIDED BY THIS GROUP ARE INCORPORATED INTO THE FINAL RETURN. THE FINAL RETURN IS REVIEWED AT A COMMITTEE LEVEL OF THE BOARD PRIOR TO IT BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C THERE IS A SYSTEMATIC PROCESS COORDINATED THROUGH THE GOVERNANCE COMMITTEE WHERE THE CONFLICT OF INTEREST STATEMENTS COMPLETED ANNUALLY BY BOARD MEMBERS AND SENIOR LEADERSHIP TEAM MEMBERS ARE REVIEWED BY THE GOVERNANCE COMMITTEE. WHENEVER THE COMMITTEE FEELS THE CONFLICT STATEMENT IS EITHER INCOMPLETE OR FEELS SOMETHING MAY BE MISSING, THE COMMITTEE WILL ASK MANAGEMENT TO PURSUE FURTHER DUE DILIGENCE. WHEN A BOARD MEMBER DOES HAVE AN INHERENT CONFLICT, THE TRUSTEE IS ASKED TO EITHER ABSTAIN FROM VOTING OR EXCUSE HIMSELF FROM THE ROOM DURING THE DISCUSSION AND VOTING. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN) DELEGATES RESPONSIBILITY FOR ADHERENCE TO ALL LEGAL AND REGULATORY REQUIREMENTS AFFECTING EXECUTIVE COMPENSATION TO THE HUMAN RESOURCES/COMPENSATION COMMITTEE OF THE BOARD (THE COMMITTEE). THE COMMITTEE IS PERMITTED TO ENGAGE EXTERNAL RESOURCES AS NECESSARY TO EDUCATE THE COMMITTEE REGARDING NEW LEGAL OR REGULATORY GUIDELINES, MARKET TRENDS AND TO SUPPORT DELIBERATIONS AND DECISION MAKING RELATED TO EXECUTIVE COMPENSATION. THE COMMITTEE SELECTED AND UTILIZES AN INDEPENDENT COMPENSATION CONSULTANT, MERCER - A MARSH & MCCLENNAN COMPANY, (THE CONSULTANT) AS A RESOURCE TO ASSIST WITH DECISIONS RELATED TO EXECUTIVE COMPENSATION. ACCORDING WITH THE COMMITTEE'S ANNUAL WORK PLAN, THE CONSULTANT PRESENTED A REASONABLENESS OPINION FOR 2015 ON JUNE 9, 2015 AND FOUND THE FOLLOWING: "MERCER (US), INC. CERTIFIES THAT IT (1) IS A COMPENSATION-CONSULTING FIRM, (2) PERFORMS COMPENSATION VALUATION STUDIES OF THIS TYPE ON A REGULAR BASIS, AND (3) IS QUALIFIED TO PERFORM THE VALUATIONS OF THE TYPE OF PROPERTY OR SERVICES INVOLVED. IN MERCER'S VIEW, BASED ON OUR ANALYSIS OF COMPETITIVE COMPENSATION AND BENEFIT PRACTICES FOR FUNCTIONALLY COMPARABLE POSITIONS IN SIMILARLY SITUATED ORGANIZATIONS, TOTAL REMUNERATION FALLS WELL WITHIN A REASONABLE RANGE OF COMPETITIVE MARKET PRACTICE". THE REASONABLENESS OPINION WAS REVIEWED WITH THE COMMITTEE AT THEIR JUNE 2015 MEETING. ALL OF THE COMPENSATION MEETINGS ARE FORMALLY DOCUMENTED CONSISTENT WITH BEST GOVERNANCE PRACTICES. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G PHYSICIANS FEES: PROGRAM SERVICE EXPENSES 293,631. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 293,631. PHARMACY: PROGRAM SERVICE EXPENSES 350,968. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 350,968. TRANSPORTATION: PROGRAM SERVICE EXPENSES 15,741. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 15,741. LAUNDRY & HOUSEKEEPING: PROGRAM SERVICE EXPENSES 251,771. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 251,771. LABORATORY: PROGRAM SERVICE EXPENSES 354,145. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 354,145. RADIOLOGY: PROGRAM SERVICE EXPENSES 116,183. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 116,183. THERAPY: PROGRAM SERVICE EXPENSES 20,325. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 20,325. DIALYSIS: PROGRAM SERVICE EXPENSES 128,367. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 128,367. DIETARY: PROGRAM SERVICE EXPENSES 93,677. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 93,677. OTHER: PROGRAM SERVICE EXPENSES 31,456. MANAGEMENT AND GENERAL EXPENSES 540. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 31,996. FORM 990, PART XI, LINE 2C: THE PROCESSES USED BY THE COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE ORGANIZATION'S FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAVE NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART VI, LINE 1: THE EXECUTIVE COMMITTEE IS COMPRISED OF THE CHAIRS OF ALL THE BOARD COMMITTEES AS WELL AS THE CHAIR AND VICE CHAIR OF THE BOARD. ALL EXECUTIVE COMMITTEE MEMBERS ARE MEMBERS OF THE BOARD OF TRUSTEES. THE EXECUTIVE COMMITTEE CAN ACT ON BEHALF OF THE BOARD OF TRUSTEES IN MOST CASES. ANY FUNDAMENTAL CHANGES WILL GO TO THE FULL BOARD. GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 232215800 OPERATES TWO SKILLED NURSING FACILITIES FOR THE SEVERELY DISABLED PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 233073390 PROVIDES INDEPENDENT LIVING APTS FOR DISABLED, LOW-INCOME ADULTS PA 501(C)(3) LINE 9 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD REHABILITATION HOSPITAL GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 231371947 PROVIDES COMPREHENSIVE INPATIENT AND OUTPATIENT REHABILITATION SERVICES PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD REHABILITATION NETWORK GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 232216041 PROVIDES MANAGEMENT SERVICES IN SUPPORT OF ITS TAX-EXEMPT AFFILIATES PA 501(C)(3) LINE 7 N/A 0 PHILADELPHIA POST-ACUTE PARTNERS LLC 1800 LOMBARD STREET PHILADELPHIA PA 19146 208283421 OPERATES INPATIENT REHAB HOSP, ACUTE CARE HOSP & 8 OUTPATIENT FACILITIES PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD RECIPROCAL RISK RENTENTION GROUP 7301 RIVERS AVENUE SUITE 230 NORTH CHARLESTON SC 29406 204065112 RISK RETENTION GROUP SC N/A C 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 1 1 1