2016-05-11T09:19:08-05:00 2015-06-30 990 2014-07-01 232367707 Lehigh Valley Hospital - Muhlenberg LEHI 4848840130 2100 Mack Blvd Allentown PA 181035622 Edward F O'Dea Exec VP & CFO 6104027501 2016-05-11 2014 2016-08-17 19:52:53Z Brian A Nester 2100 Mack Blvd Allentown PA 181035622 500002728 0 X www.lvhn.org X 1985 PA Our mission is to heal, comfort and care for the people of our community by providing advanced and compassionate health care of superior quality and value, supported by education and research. 14 8 1961 388 0 158483 471859 675687 239574035 245361575 7498103 15806181 6541482 4288869 254085479 266132312 0 0 0 0 99084447 100259899 0 0 635496 125294650 126364207 224379097 226624106 29706382 39508206 473768583 502394561 167470309 167279368 306298274 335115193 X Our mission is to heal, comfort and care for the people of our community by providing advanced and compassionate health care of superior quality and value, supported by education and research. 0 0 218092879 258922299 LVH-Muhlenberg is a non-profit corporation organized and existing under the laws of the Commonwealth of Pennsylvania, which owns and operates a general, acute patient care facility totaling approximately 882,000 square feet and operates 139 medical/surgical beds, 28 cardiac care beds, and 28 intensive care beds as of June 30, 2015. LVH-Muhlenberg offers a full range of inpatient and outpatient services, with the exception of obstetrics. LVH-Muhlenberg is a subsidiary of LVHN, which is LVH-Muhlenberg's sole corporate member.LVH-Muhlenberg is located on the northern edge of the City of Bethlehem. It is located at the intersection of Route 22 and Route 378 and is highly accessible from these highways with entrance/exit ramps located less than one-quarter mile from LVH-Muhlenberg. The local public transportation system, LANTA/METRO, has a bus stop located near the entrance of LVH-Muhlenberg.LVH-Muhlenberg provides a broad range of services, including the following:Acute CareAmbulatory SurgeryAnatomical PathologyBlood BankCancer ServicesCardiac CatheterizationCardiac RehabilitationCardiovascular LabChest Pain ServiceClinical Psychology ServicesCT ScannerDental ClinicDiagnostic Radioisotope FacilityDiagnostic Radiology DepartmentEchocardiography ServicesElectrocardiographyElectroencephalographyElectrophysiologyEmergency Department/Express ERGI LabHistopathologyHome HealthIndustrial RehabilitationInterventional RadiologyMagnetic Resonance ImagingMammographyNeuro Diagnostics LaboratoryNon-invasive Vascular LaboratoryNuclear MedicineOccupational HealthOccupational TherapyOpen Heart SurgeryOutpatient ServicesPain ManagementPathology(HNL Clinical and Anatomic) Pediatric Ambulatory SurgeryPediatric Specialty ServicesPerioperative ServicesPeripheral Vascular SurgeryPharmacyPhysical TherapyPodiatry ServicesPost Anesthesia Care UnitPsychiatric Inpatient UnitPsychiatric Outpatient UnitPulmonary/Vascular RehabRadiation TherapyRenal DialysisRegional Heart CenterRehabilitation ServicesRespiratory TherapySleep LabSocial Service DepartmentSpeech TherapySports MedicineStress Test LaboratoryStroke CenterTele-Intensivist ServicesThoracic SurgeryValet ServicesVascular Medicine and SurgeryVolunteer Services DepartmentUltrasoundWound CareACCREDITATION, APPROVAL AND MEMBERSHIPLVH-Muhlenberg is currently accredited by TJC under the most recent three-year accreditation effective July 2015. LVH-Muhlenberg's facilities and services are licensed by the Pennsylvania Department of Health and have been fully certified for Medicare and Medicaid reimbursement. LVH-Muhlenberg's licenses, accreditations, approvals and memberships are as follows:Licenses and AccreditationsThe Joint CommissionDepartment of Health, Commonwealth of PennsylvaniaDepartment of Human Services, Commonwealth of PennsylvaniaPathology Laboratory: Bureau of Laboratories, Department of Health, Commonwealth of Pennsylvania College of American Pathologists American Association of Blood Banks HCFA, CLIA CertificationPennsylvania State Board of PharmacyPA Department of Environmental Protection, with agreement state status with Nuclear Regulatory CommissionAmerican College of RadiologyApprovalsU.S. Department of Health & Human Services - Hospital certified for participation in Health Insurance for the Aged and Disabled Program (Medicare)MEMBERSHIPSAmerican Hospital AssociationHospital Association of PennsylvaniaAmerican Association of Medical CollegesCouncil of Teaching HospitalsAssociation for Hospital Medical EducationMAGNET STATUS FOR NURSING EXCELLENCEIn August 2002, the American Nurses Credentialing Center (ANCC) granted Magnet designation to LVH and LVH-Muhlenberg, the first full-service hospitals in Pennsylvania to receive the recognition. Developed by the ANCC in 1994, the Magnet designation is the American Nurses Association's highest honor for excellence in nursing and recognizes both hospitals as national leaders in nursing education, research, patient satisfaction, quality care, job retention and the central role of nursing in the organization. Magnet designation is for a period of four years, at which time an organization must reapply. The reapplication process is intense, necessitating that hospitals demonstrate increasingly higher standards than previous applications. In 2006 and 2011, LVHN hospitals were redesignated as Magnet hospitals, continuing to demonstrate the required evidence of a practice environment in which professional nurses and interdisciplinary colleagues deliver the highest standards of quality care. Evidence associated with designation for a fourth time was submitted April 1, 2015, earning LVH and LVH-Muhlenberg a January 4 - 7, 2016 site visit to verify, clarify and amplify the written evidence. In October, 2013, Lehigh Valley Health Network was honored with the prestigious Magnet Prize for innovations in telehealth. The Magnet Prize recognizes innovative nursing programs and practices in ANCC Magnet-designated organizations. The $25,000 purse is being used to continue, advance, and disseminate the winning innovation. Estimated Value of Free Care, Community Service, Charitable Contributions, and Professional and Community Education Medicare Shortfall 16,402,972, Medical Assistance Shortfall 9,130,082, Uncompensated Charity Care 2,641,000, Bad Debt 4,314,430, Clinics Subsidy 707,346, Real Estate Taxes Paid on Owned and Leased Property 577,424, Financial Support to City of Bethlehem 45,000, Support to City of Bethlehem Health Bureau 20,343, Physical Examinations - Firefighters & HazMat Personnel 41,208, Value of Volunteer Assistance 802,855, Department of Community Health in-kind, Division of Education - Office of Student Affairs in-kind, Helwig Diabetes Center Education & Outreach Programs in-kind, Pastoral Care 90,069, Patient Representative - Press, Ganey Survey 63,011, Foreign Language & Sign Language Interpreting Service in-kind, Community Health Education Publications 70,718, Patient Education Publications 111,068, Materials to Promote Health-Related Activities 59,875, Physician Referral & Health Information Line in-kind, Community Outreach in-kind, Voluntarism in-kind, Transportation for Discharged Patients 13,644, Infection Control Community Service in-kind, Dental Screenings and Free Procedures in-kind, Library Services to the Community in-kind, Stroke Center Community Education Programs in-kind, Sleep Disorders Center Community Education in-kind, Patient Care Services - Community Service (includes support groups and other programs) in-kind, HealthWorks Workplace Safety Activities 877. Total 51,157,805 218092879 1 1 0 0 0 0 0 0 0 1 1 0 1 0 1 1 0 1 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 1 0 0 1 71 0 1 1961 1 1 1 0 0 0 0 1 1 0 0 0 0 X 14 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 PA X X X The Organization 4848840130 2100 Mack Blvd Allentown PA 181035622 Richard Fleming Honorary Trustee 1.00 X 0 0 0 Alison Byerly PhD Trustee 1.00 X 0 0 0 Robert M Dickler Trustee 1.00 X 0 0 0 Steven R Follett Trustee 1.00 X 0 0 0 William F Hecht Trustee 1.00 X 0 0 0 Robert J Motley MD Trustee 1.00 60.00 X 0 316233 36954 Brian Nester DO Trustee/CEO 1.00 60.00 X X 0 1002894 31340 Joseph Patruno MD Trustee 1.00 60.00 X 0 292902 22196 Jarret R Patton MD Trustee 1.00 60.00 X 0 303097 42442 Anthony P Veglia MD Trustee 1.00 X 0 0 0 Gregory Brusko DO Trustee 1.00 60.00 X 0 459355 41506 William Mason Trustee 1.00 X 0 0 0 Susan C Yee Trustee 1.00 X 0 0 0 Kathryn P Taylor Vice-Chair 1.00 X 0 0 0 Martin K Till Chair 1.00 X 0 0 0 Edward F O'Dea Treasurer 1.00 60.00 X 0 660544 42762 James A Rotherham Assistant Treasurer 1.00 60.00 X 0 268373 51620 Thomas Kennedy Esq Secretary 1.00 X 0 0 0 Thomas V Whalen MD Assistant Secretary 1.00 60.00 X 0 887248 21172 Robert X MurphyJr MD Administration 60.00 X 638948 0 41506 Kayla R Long Pharmacy 60.00 X 148466 0 12782 Rhonda Thomas Pharmacy 60.00 X 155470 0 12318 Joseph Tomko Pharmacy 60.00 X 134837 0 19356 Jessica Price Pharmacy 60.00 X 134574 0 5994 Ronald W Swinfard MD Former Trustee/CEO 0.00 0.00 X 0 2364927 33636 1212295 6555573 415584 35 1 1 0 Crothall Healthcare 13028 Collection Center Drive Chicago IL 60693 Housekeeping Services 3652091 Sodexho Inc & Affiliates PO Box 360170 Pittsburgh PA 152516170 Dietary Services 2975585 Harmelin Media 525 Righters Ferry Rd Bala Cynwyd PA 19004 Advertising Services 578010 Kadent Healthcare Corp 645 Penn Street Reading PA 19601 Collection Services 288188 Paths LLC 9 Executive Campus Cherry Hill NJ 080024502 Collection Services 223310 11 675687 118694 675687 Outpatient Revenue 624100 147244843 147244843 Inpatient Revenue 624100 98116732 98116732 245361575 5721168 5721168 3240329 2754280 486049 486049 486049 240937604 230852591 10085013 10085013 10085013 590654 263545 327109 327109 Misc. Income 900099 2578000 2578000 Health Network Labs 621500 861072 861072 Lehigh Valley PHO 900003 36639 36639 3475711 266132312 258922299 0 6534326 X 1304252 1304252 79184023 75454422 3420296 309305 3965822 3779199 171019 15604 9885842 9494803 363723 27316 5919960 5641732 254756 23472 5700 2700 3000 26478785 25110710 1368075 881128 785981 95147 339033 337065 1968 702364 701366 998 5790398 5790398 248726 238788 9938 310542 310542 5364223 5364223 13019095 13017583 1512 1873386 1873386 Purchased Services 28016689 25551591 2205299 259799 Medical Supplies 26718823 26718823 Bad Debt Expense 11913761 11913761 Other Supplies 1778727 1778727 2922827 2922827 226624106 218092879 7895731 635496 1059 1011 13739584 8372970 644518 438300 32575949 33822155 261121 4464280 3119704 3058888 502471 446752 237036005 123887126 116087937 113148879 278810119 310129976 25186731 25822575 2839390 2688775 473768583 502394561 13292052 13731388 39847 44629 143166194 141504170 10972216 11999181 167470309 167279368 X 303757313 332712303 1969747 1426039 571214 976851 306298274 335115193 473768583 502394561 X 39508206 -10553216 -138071 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 820370 7275 46653 600 23545 850153 765903 13342 54095 3100 9870 820370 728286 3955 38943 183 5098 765903 719801 1113 17225 -3257 13110 728286 658946 2800 65103 290 6758 719801 0.00000 0.78000 0.22000 0 0 9733605 9733605 160770019 77798532 82971487 5752990 3444184 2308806 56357051 42005627 14351424 4422340 638783 3783557 113148879 Investment-Lehigh Valley Physician Hospital Organization 5.0% 1144323 C Investment-Health Network Laboratories 14.40% 18467252 C Investment-LVHN Reciprocal Risk Retention Group 5000 C Investment-Westgate Professional Center, Inc. 6206000 C 25822575 Pension Liability 2860882 Haz Mat Remediation Liability 599225 Insurance Liability 3785004 Security Deposits 1200 SWAP Liability 4752870 11999181 X Part V, Line 4: The endowment funds are used for continuing education, scholarships, research, clinical equipment, and nursing awards. Part X, Line 2: In 2008, the Organization adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 has become part of ASC 740. FIN 48/ASC 740 establishes that the financial statement effects of a tax position taken or expected to be taken are to be recognized in the financial statements when it is more likely than not, based on technical merits, that the position will be sustained upon IRS examination. FIN 48 became effective for fiscal year 2008 for the Organization. The Organization has analyzed tax positions taken on federal income tax returns for all open tax years for the taxable entities and has determined that as of June 30, 2015, there are no uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. The Organization has analyzed specific criteria regarding the exempt 501(c) 3 status for the tax exempt entities and has determined that as of June 30, 2015 the Organization is compliant with the qualifications for exemption from Federal income tax. Golf & Tennis 387133 387133 130322 Muhlenberg Summer Festival 203521 203521 133223 590654 590654 263545 263545 327109 1 1 X 1 X 1 X 1 1 0 1 1 2641000 2641000 0.01230 17619685 8489602 9130083 0.04250 20260685 8489602 11771083 0.05480 515813 515813 0.00240 18936856 3479898 15456958 0.07200 1939741 1232395 707346 0.00330 21392410 4712293 16680117 0.07770 41653095 13201895 28451200 0.13250 1 4314430 1050937 58969989 50661555 8308434 X 1 1 1 LVHN Reciprocal Risk Retention Group Malpractice Insurance 0.16670 0.00000 0.00000 2 Health Network Laboratories LLC Laboratory Services 0.14690 0.00000 0.00000 3 Health Network Laboratories LP Laboratory Services 0.14400 0.00000 0.00000 4 Lehigh Valley Physician Hospital Organization Inc Health Care Services 0.05000 0.00000 0.00000 1 1 Lehigh Valley Hospital - Muhlenberg 2545 Schoenersville Road Bethlehem PA 18017 www.lvhn.org 134601 X X X X X Lehigh Valley Hospital - Muhlenberg 1 0 0 1 X X X X X X X X X 12 1 1 1 1 X www.lvhn.org X X 1 14 0 1 0 1 X 200.000000000000 400.000000000000 X X 1 1 X X X X 1 X www.lvhn.org X www.lvhn.org X www.lvhn.org X X X X 1 X 0 X X X X 1 X 0 0 Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 5: The Council's community needs assessment focused on the health status of the Lehigh Valley (Lehigh and Northampton Counties). The CHNA approach incorporated best practice standards as recommended by the American Public Health Association and the Association for Community Health Improvement of the American Hospital Association. The Council employed several health assessment techniques that used both qualitative and quantitative data. The assessment began by using existing community health measures from, but not limited to, the Centers for Disease Control and Prevention (CDC), US Census Bureau, Dartmouth Atlas of Healthcare, Pennsylvania's Department of Health, and the University of Wisconsin's County Health Rankings. Community input was elicited through health opinion surveys, social reconnaissance with 84 key community members, and interviews with leading health experts. Findings from these efforts comprised a community health profile.Community dialogues were conducted using a Community-Based Participatory Research (CBPR) approach in two federally-designated medically underserved areas. The dialogues were facilitated by a national expert in CBPR in four 3-hour sessions with 170 community members in attendance. The findings from the Community Health Profile were discussed at length. These findings were strongly corroborated by the community members and stakeholders, who listed mental health, oral health, health disparities, racism, poverty, unhealthy lifestyles, poor education, and limited access to care as major barriers to health. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 6a: The Health Care Council of the Lehigh Valley includes representation from Lehigh Valley Health Network, Good Shepherd Rehabilitation Network, Sacred Heart HealthCare System, Saint Luke's University Hospital and Health Network, KidsPeace Psychiatric Hospital, and The Dorothy Rider Pool Health Care Trust. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 7d: The Community Health Needs Assessment was mailed to key community leaders and was provided press coverage in the community newapaper and local television station. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 18d: Collection activities are limited to hospital sending four statements requesting payment. The statements include information about the hospital's Financial Assistance Policy, soliciting the patients participation in the Financial Assistance Program. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 22d: The hospital facility used the average of its negotiated commercial insurance rates and Medicare rates when calculating the maximum amounts that can be charged. Part V, Section B, Line 16 Financial Assistance Policy Website Availability Lehigh Valley Hospital - Muhlenberg Part V, Section B, line 16a website: www.lvhn.org Lehigh Valley Hospital - Muhlenberg Part V, Section B, line 16b website: www.lvhn.org Lehigh Valley Hospital - Muhlenberg Part V, Section B, line 16c website: www.lvhn.org Part I, Line 6a: The Community Benefit Report is issued by Lehigh Valley Health Network - EIN 22-2458317, the parent company of Lehigh Valley Hospital - Muhlenberg. Part I, Line 7: The costing methodology is cost to charge ratio for programs with gross charges and direct costs for programs without gross charges. Part I, Line 7g: The clinics subsidy of $707,346 is the difference between the cost of services provided in the hospitalclinics and the payments received for those services. The clinics at LVH-Muhlenberg include thedental clinic that is operated in conjunction with the dental residency program, and the outpatientmental health clinic (Base Service Unit) which provides evaluation, counseling and case managementservices to residents of Lehigh and Northampton counties. The Clinics Subsidy does not include thecost of any Uncompensated Charity Care as reported above. Clinic costs do include $18,822 of thewage and benefits expense of dental residents who provided care to clinic patients. Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 11,913,761. Part III, Line 2: Patient accounts written off as bad debt are identified. The cost to provide care to these patients is calculated by multiplying the total charges written off as bad debt by the cost to charge ratio. Part III, Line 3: This amount is the cost to provide care to uninsured patients that do not participate in the process to determine if they are eligible for financial assistance. The cost is determined using cost to charge ratios. The rationale for including the cost to provide care to uninsured patients that do not participate in the financial assistance process is the hospital's experience with uninsured patients that do participate in the financial assistance program. When the hospital evaluates uninsured patients for financial assistance, the most common finding is that uninsured patients have income less than 400% of the Federal poverty guideline and qualify for financial assistance. The hospital believes that uninsured people who choose not to participate in the financial assistance process and have their accounts written off as bad debt, have income that would qualify for the hospital financial assistance program. Part III, Line 4: BAD DEBTS - The Organization records a provision for bad debts related to uninsured accounts net of the AGB discount to record the net self-pay accounts receivable at the estimated amounts the Organization expects to collect. Coinsurances and deductibles within the third-party payer agreements are the patient's responsibility so the Organization includes these amounts in the self-pay accounts receivable and considers these amounts in its determination of the provision for bad debts based on historical collection experience.In instances where the Organization believes a patient has the ability to pay for services and, after appropriate collection effort, payment is not made, the amount of services not paid is written-off as bad debts. Amounts recorded as Provision for bad debts do not include charity care. The Provision for bad debts for the years ended June 30, 2015 and 2014, was $11,914,000 and $14,250,000 respectively. Part III, Line 8: The source of the Medicare allowable costs relating to revenue received from Medicare is the FY '15 Medicare Cost Report. The revenue and expenses are both determined using Medicare principles. The hospital is providing the community a benefit in excess of Medicare payments. Part III, Line 9b: Financial Counseling staff will determine whether patients meet eligibility criteria for financial assistance. Accounts that do not meet the eligiblilty requirements will be referred to an external receivables follow up agency, and if not paid referred to a collection agency and subsequently transferred to bad debt status if the accounts remain unpaid. Part VI, Line 2: The Health Care Council of the Lehigh Valley (HCCLV) used quantitative and qualitative methods to identify both the major causes of death and illness, and the barriers to improving the health and well-being of community residents. The HCCLV's approach has incorporated best practice standards recommended by the American Public Health Association and the Association for Community Health Improvement. These procedures included using multiple data sources and input from stakeholders including community organizations and community members. Quantitative data were collected from The Centers for Disease Control, US Census Bureau, Dartmouth Atlas of Healthcare, Pennsylvania Department of Health's Vital Statistics and County Profiles, University of Wisconsin's County Health Rankings, National Cancer Institute State Cancer Profiles, Institute for People, community opinion surveys, and a Lehigh Valley disability survey. Qualitative data were collected using community focus groups and social reconnaissance, a process that intensely examined community dynamics with regards to health. Part VI, Line 3: Consistent with the mission and values of Lehigh Valley Health Network, it is the policy to provide medical care to all individuals without regard to their ability to pay for services. The Financial Assistance Policy applies to uninsured and under-insured individuals who participate in the process to evaluate their ability to pay for LVHN services.Patients are identified by LVHN registration, Benefits and Verification, Customer Service, and Financial Counselors as being in financial need. The Financial Counselors help patients complete the application for Financial Assistance. LVHN follows the Federal Poverty Guidelines to evaluate eligibility. Patients whose family income falls below 200% of the Federal Poverty guideline will have their entire balance forgiven for their qualifying services at a participating LVHN provider. Patients with a family income below 400% of the Federal Poverty guidelines will have a portion of their balance forgiven for qualifying services at a participating LVHN provider. Patients are evaluated for no cost or reduced premium insurance plans. The LVHN Financial Counselors will offer information to patients who are interested in seeing if they qualify for these programs offered by commercial insurance companies.Patients often express financial concern or need by contacting the LVHN Customer Service departments. The Customer Service representatives explain the programs available; Financial Assistance and support in applying for Medical Assistance or insurance through the Federal Health Insurance Exchange. Patients will be referred to the Financial Counselors who work with patients to apply for Pennsylvania Medical Assistance. The Financial Counselors are located onsite. The Financial Counselors visit patients in their inpatient rooms, in the Cancer Center, and in the Emergency Department. In addition, LVHN advertises Financial Assistance in the local newspaper, on our public website and on the statements sent to our patients. Part VI, Line 4: The primary service area of LVH-Muhlenberg is comprised of seventeen (17) zip codes located primarily in eastern Lehigh County and western Northampton County. Most are within a ten-mile radius of LVH-Muhlenberg Based on U.S. Census Bureau data for the year 2010 census, the population of the primary service area was approximately 413,156 people. During fiscal year 2015, approximately 80.1% of the discharges from LVH-Muhlenberg were residents of the primary service area. According to the American Community Survey (U.S. Census) the estimated population for the 17 zip code area in 2014 was 472,481.The 2010 population of the secondary service area was approximately 294,855. During fiscal year 2015, approximately 12.7% of the discharges from LVH-Muhlenberg were residents of the secondary service area. Based on U.S. Census Bureau data, the current population of the combined primary and secondary LVH-Muhlenberg service areas is projected to increase approximately 5.4% (CAGR* - .59%) by the year 2017, based on the extrapolation of the population CAGR from Census year 2000 - 2010. Part VI, Line 5: Lehigh Valley Hospital - Muhlenberg qualifies as an Institution of Purely Public Charity in Pennsylvania. This regulation is referred to as Act 55. To be considered a purely public charity, nonprofits must: (1) advance a charitable purpose; (2) donate or render gratuitously a substantial portion of its services; (3) benefit a substantial and indefinite class of persons who are legitimate subjects of charity; (4) relieve the government of some burden; and (5) operate entirely free from private profit motive.LVHM is required to reapply for this charitable status every five years and currently qualifies through February 28, 2021. Part VI, Line 6: Lehigh Valley Health Network's (LVHN) Community Health Improvement Plan is a set of priorities and strategies to be pursued by LVHN-CC and Muhlenberg sites. Much of the work that went into developing these priorities is embodied in a Community Health Needs Assessment (CHNA) that was undertaken by the Health Care Council of the Lehigh Valley (HCCLV). The HCCLV is an ongoing, collaborative effort of the region's not-for-profit healthcare provider systems. This Plan outlines the steps that LVHN-CC and Muhlenberg sites will work in partnership on to address health needs for the community they serve. To the extent possible, all priorities will be addressed at each facility. However, there may be priorities that will not be addressed at each facility. This Plan includes four priority areas that address each of the top health issues in our region, particularly for the most vulnerable residents of the community. These priorities were selected by the HCCLV by considering the root causes contributing to health needs: 1) improving access to quality health care; 2) enhancing the dissemination of health information; 3) addressing social determinants of health and health disparities; and 4) promoting healthy lifestyle behaviors. Within each priority area, strategies have been identified as critical to addressing these health needs and, thereby improving the health status of our community members. Part III, Section B. Medicare, Line 8 Medicare program costs included in the annual LVHN Community Benefit Report not included or allowable in the Medicare Cost Report totaled $24,711,406. The costs of Medicare Managed Care, included in this amount is $8,730,590. The remaining $15,980,816 of costs not included in the Medicare Cost Report consists primarily of LVPG practice subsidies, Physician costs in excess of allowable amounts, non reimburseable interest expense, LVAS subsidy, and disallowable related organization costs. X X X X X 1 1 0 0 0 0 0 0 0 Robert J Motley MD Trustee 0 304579 0 10000 0 1654 0 0 0 36954 0 353187 0 0 Brian Nester DO Trustee/CEO 0 763245 0 131250 0 108399 0 0 0 31340 0 1034234 0 0 Joseph Patruno MD Trustee 0 278625 0 6000 0 8277 0 0 0 22196 0 315098 0 0 Jarret R Patton MD Trustee 0 272566 0 20000 0 10531 0 0 0 42442 0 345539 0 0 Gregory Brusko DO Trustee 0 397786 0 37092 0 24477 0 0 0 41506 0 500861 0 0 Edward F O'Dea Treasurer 0 465134 0 113322 0 82088 0 0 0 42762 0 703306 0 0 James A Rotherham Assistant Treasurer 0 228561 0 42000 0 -2188 0 13528 0 38092 0 319993 0 0 Thomas V Whalen MD Assistant Secretary 0 595783 0 177710 0 113755 0 0 0 21172 0 908420 0 0 Robert X MurphyJr MD Administration 447367 0 166366 0 25215 0 0 0 41506 0 680454 0 0 0 Kayla R Long Pharmacy 154171 0 500 0 -6205 0 0 0 12782 0 161248 0 0 0 Rhonda Thomas Pharmacy 143624 0 14480 0 -2634 0 0 0 12318 0 167788 0 0 0 Joseph Tomko Pharmacy 134064 0 500 0 273 0 0 0 19356 0 154193 0 0 0 Ronald W Swinfard MD Former Trustee/CEO 0 614891 0 145893 0 1604143 0 0 0 33636 0 2398563 0 0 Part I, Lines 4a-b Robert Murphy, MD $30,485 Gregory Brusko, DO $25,082 Ronald W. Swinfard, MD $46,899 Jarret Patton, MD $17,876 James A. Rotherham $13,528 Thomas V. Whalen $101,462 Edward F. O'Dea $80,464 Robert J. Motley $16,699 These amounts are accruals to a nonqualified supplemental executive retirement plan. A Lehigh County General Purpose Authority 911886539 52480GAY0 2008-06-04 18876416 construct, renovate & equip facilities 0 0 0 B Lehigh County General Purpose Authority 911886539 52480GBG8 2011-04-01 54648270 refund 9/12/96 & 4/21/99A issues; reissuance of 7/7/05 and 6/5/08 issues 0 0 0 C Lehigh County General Purpose Authority 911886539 52480GCB8 2012-12-12 75067274 construct, renovate & equip facilities; refund 10/17/01 and 5/21/03 issues 0 0 0 A 1948700 18932776 247575 464911 18220290 2010 0 0 1 1 B 4913520 54648270 54528750 119520 2011 1 0 1 1 C 75067274 58470215 896598 15700000 461 2012 1 1 1 1 A 0 0 1 0 0 0 0 0 0 B 0 0 1 0 1 1 Merrill Lynch & Goldman Sachs 20.000000000000 0 0 0 0 0 C 0 0 1 0 0 0 0 0 0 0 0 Susan C Yee-Trustee Partner in 94 Brodhead Associates - Trustee of LVHN/LVH/LVHM/LVHH/HWC 123964 94 Brodhead Associates leases office space to LVPG at fair market value. 0 Kathryn P Taylor-Trustee Board Member of Capital Blue Cross - Trustee of LVHN/LVH/LVHM 42120587 Capital BlueCross is a third party insurer doing business with LVHN. 0 X 5050 fair market value X 4 6101 fair market value X Family Activity Items 140 32599 fair market value X Gift Cards 92 22432 cost X Electronics 4 1886 cost X Jewelry 1 1300 fair market value 0 0 0 Form 990, Part VI, Section A, line 6 The Organization's sole corporate member is Lehigh Valley Health Network, Inc. Form 990, Part VI, Section A, line 7a The Organization's sole corporate member, Lehigh Valley Health Network, Inc., has the power to elect, appoint, approve, or reject members of the Organization's governing body. Form 990, Part VI, Section A, line 7b The Organization's sole corporate member, Lehigh Valley Health Network, Inc., has the power to approve or reject certain major operating decisions made by the Organization's governing body. Form 990, Part VI, Section B, line 11 The process to review the 990's includes: Draft 1 of the returns is reviewed in detail with a focus on accuracy, completeness, and perspective by the LVHN Vice-President,Finance-Controller and the LVHN Corporate Legal Counsel. Draft 2 of the returns is reviewed by the Executive Vice President & Chief Financial Officer. All Compensation disclosures are reviewed by the Director - Compensation - Human Resources. Draft 3 of the returns is reviewed together with the President & CEO, the Executive Vice President & Chief Financial Officer, the Vice-President,Finance-Controller and the Director-Tax. Final returns are reviewed with the LVHN Board Leadership Group (the Board Chair and three Vice Chairs). Copies of all 990's are provided to the full Board prior to filing. Form 990, Part VI, Section B, line 12c In January 2016, LVHN implemented an electronic tool designed to send notifications and track disclosures reported on Conflict of Interest Questionnaires. The Network also expanded the scope of the Conflict of Interest or Commitment Policy, such that additional colleagues are now required to complete a questionnaire each year. Prior to January, the VP, Internal Audit and Compliance Services issued a notice to Board Members and members of the Senior Management Council when it was time for them to submit their conflict of interest questionnaires. The VP also instructed members of the Senior Management Council to identify and request completed conflict of interest questionnaires from individuals who had potential conflicts of interest and to provide her with the identity of those individuals. Compliance Services tracked completion of the questionnaires. All physicians on LVHN's medical staff are also required to complete a conflict of interest questionnaire annually. Medical Staff Services monitors this process to ensure that all physicians comply. Potential conflicts are managed by the LVHN Conflict of Interest Committee and/or by the Board of Trustees, depending on whose interest(s) pose the conflict and the nature of the conflict. Form 990, Part VI, Section B, line 15 2015 Executive Compensation Review In compliance with the rebuttable presumption of reasonableness process outlined in the Intermediate Sanctions regulations (issued under Section 4958 of the Internal Revenue Code); Sullivan Cotter and Associates, Inc. (Sullivan Cotter) qualifies as an independent executive compensation expert, specializing in the health care industry. Sullivan Cotter provides advice to the Lehigh Valley Health Network Executive Compensation Committee of the Board of Trustees to support its attainment of the rebuttable presumption of reasonableness under the Intermediate Sanctions regulations. They also support the committee in ensuring that the LVHN executive compensation program is competitive and aligned with the organization's executive compensation philosophy. Chief Executive Officer Total Compensation Review: Program Analysis: Analyze the market position of total compensation (base salary, incentive, benefits, and perquisites) for LVHN's President and Chief Executive Officer (CEO) in relation to CEO market data obtained for a defined peer group of comparable health systems. This includes the preparation of tally sheets for the President and CEO as well as an analysis of Form 990 compensation data. They assess the alignment of the President and CEO's compensation with LVHN's compensation philosophy and note the implications of the review. Sullivan Cotter's analyses and findings are summarized in a report to the Committee that provides a reasonableness opinion for the Intermediate Sanctions compliance. The report was provided by Sullivan Cotter at the August 17, 2015 Executive Compensation Committee Meeting. Senior Management Council (SMC) Total Compensation Review: Program Analysis: Analyze the market position of total compensation (salaries, incentives, benefits, and perquisites) for LVHN's SMC executives and Clinical Chairs (approximately 30 total positions) in relation to comparable positions in peer organizations. This includes the preparation of tally sheets for each individual. Sullivan Cotter's analyses and findings are summarized in a report to the Committee that also provides an opinion of reasonableness for Intermediate Sanctions compliance. . The report was provided by Sullivan Cotter at the August 17, 2015 Executive Compensation Committee Meeting. Summary of Methodology To conduct this analysis, Sullivan Cotter: Collected background information regarding LVHN's operations, structure, size and scope, as well as each position's duties. Compiled market data for SMC executives consistent with the Executive Compensation Philosophy approved by the Committee during its September 16, 2014 meeting: The market data used for LVHN system executives in this assessment are an equally weighted blend of (1) a peer group of 33 not-for-profit health systems located in the Northeast region (excluding New York City) with net operating revenues between $1.0 billion and $4.3 billion (average of $1.8 billion), and (2) national data reflecting organizations of similar scope and size to LVHN. National data are used where peer group data are not available. Peer group and national market data were abstracted from Sullivan Cotter's 2014 Survey of Manager and Executive Compensation in Hospitals and Health Systems, as well as other published compensation surveys reflecting pay at comparably sized organizations, which included national hospitals and national medical groups. Sullivan Cotter notes that no market data are provided for the SVP, Medical Services as the responsibilities of that position are unique, so no benchmark data are available. They recommend that the Committee assess the compensation for that position based on internal equity considerations. Compiled market data for the LVHN clinical chairs prepared by the Association of American Medical Colleges (AAMC) for the chairs of clinical departments in medical schools, LVHN's traditional comparator group for these jobs. Adjusted the market data to an effective date of January 1, 2016 at an annualized rate of 3.0% based on salary increase trends. Compared each component of LVHN's benefit program against typical market benefit practices in health systems and hospitals based on multiple published surveys, supplemented by Sullivan Cotter's proprietary data and experience. Developed market total compensation data by combining market TCC with typical market benefit costs. Compared LVHN's TC to market rates and assessed overall positioning. For physician executives having both clinical and administrative roles, relevant market data were collected based on FTE allocation. Sullivan Cotter has not completed an assessment of the physician's productivity or the Fair Market Value (FMV) of their clinical compensation, as LVHN has advised that such amounts are appropriate and within FMV. Sullivan Cotter used the following methodology to assess the competitiveness and reasonableness of LVHN's executive total compensation levels: Collected background information regarding LVHN's operations, structure, size and scope. Collected information on each Senior Management Council (SMC) member's current compensation. Data collected include base salaries, annual incentive opportunity levels (target and Maximum), actual annual incentive payout amounts, annual costs of all standard and supplemental benefits and annual cost and description of executive perquisites. Reviewed job descriptions and organizational charts to identify each position's functional responsibilities and reporting relationships. Selected the appropriate benchmark position match for each position and applied premiums/discounts to the market data in instances where LVHN's job duties differ materially from benchmark position matches. Position matches and market adjustments were reviewed with LVHN's Senior Vice President, Human Resources and Compensation staff. LVHN's projected FY2015 net revenues and physician FTE's were used as the scope size for each entity. Form 990, Part VI, Section C, line 18 Anothers Website - Guidestar. Upon request - hard copies with senior management and marketing. Form 990, Part VI, Section C, line 19 The Organization makes its financial statements available to the public through its Annual Report to the community. The Annual Report is distributed to all attendees at the Organizations annual public meeting. In addition, it is distributed via mail to members of the community. The Organizations governing documents and conflict of interest policy are not made available to the public. Form 990, Part IX, line 11g Physician Fees: Program service expenses 7,408,460. Management and general expenses 0. Fundraising expenses 0. Total expenses 7,408,460. Lab Test Fees: Program service expenses 14,058,424. Management and general expenses 0. Fundraising expenses 0. Total expenses 14,058,424. Other Program Service Fees: Program service expenses 3,643,826. Management and general expenses 1,368,075. Fundraising expenses 0. Total expenses 5,011,901. Form 990, Part XI, line 9: Temporarily & Permanently Restricted Cash -138,071. Form 990, Part XII, Line 2c The Audit Committee of the Board of Trustees assumes responsibility for oversight of the audit and selection of an independent auditor. Form 990, Part VII, Line 1a Hours worked by these individuals reflect the combined hours spent as a Board Officer and an Employee of the organization. All compensation, benefits, etc. reported are for work as a member of senior management of the organization. The remainder of the officers, trustees, listed above are volunteers and receive no compensation. Lehigh Valley Health Network 1200 S Cedar Crest Blvd Allentown PA 18103 222458317 Parent Company PA 501(c)(3) Line 11c, III-FI N/A 0 Lehigh Valley Hospital 1200 S Cedar Crest Blvd Allentown PA 18103 231689692 Health Care Organization PA 501(c)(3) Line 3 Lehigh Valley Health Network 0 Lehigh Valley Physician Group 1200 S Cedar Crest Blvd Allentown PA 18103 232700908 Physician Practice Organization PA 501(c)(3) Line 3 Lehigh Valley Health Network 0 Muhlenberg Realty Corporation 1200 S Cedar Crest Blvd Allentown PA 18103 232245513 Real Estate Rentals PA 501(c)(3) Line 11c, III-FI Lehigh Valley Health Network 0 Lehigh Valley Health Network Realty Holding Co 1200 S Cedar Crest Blvd Allentown PA 18103 232586770 Real Estate Holding Co. PA 501(c)(2) Lehigh Valley Health Network 0 Northeastern Pennsylvania Health Corporation 700 E Broad St Hazleton PA 18201 232421970 Health Care Organization PA 501(c)(3) Line 3 Lehigh Valley Health Network 0 Hazleton Health & Wellness Center 700 E Broad St Hazleton PA 18201 232580968 Staffing Services PA 501(c)(3) Line 11a, I Northeastern Pennsylvania Health Corporation 0 Hazleton Professional Services 700 E Broad St Hazleton PA 18201 205880364 Physician Services PA 501(c)(3) Line 3 Lehigh Valley Physician Group 0 Hazleton Surgical Alliance 700 E Broad St Hazleton PA 18201 202038456 Physician Services PA 501(c)(3) Line 3 Northeastern Pennsylvania Health Corporation 0 LVHN Reciprocal Risk Retention Group 151 Meeting Street Ste 301 Charleston SC 29401 200037118 Insurance PA Lehigh Valley Health Network Related 3761951 0 0 0.16670 Health Network Laboratories LLC 794 Roble Road Allentown PA 18109 232932802 Laboratory Services PA Lehigh Valley Hospital Related 146250 0 0 0.14690 Health Network Laboratories LP 794 Roble Road Allentown PA 18109 232948774 Laboratory Services PA Lehigh Valley Hospital Related 3100755 23305608 0 0 0.14350 Lehigh Magnetic Imaging Center 1230 S Cedar Crest Blvd Allentown PA 18103 232429077 Imaging Center PA N/A Lehigh Valley Imaging LLC 1230 S Cedar Crest Blvd Allentown PA 18103 464551937 Imaging Center PA N/A Hazleton Surgery Center LLC 17480 Dallas Parkway - Suite 210 Dallas TX 75287 201232531 Surgical Services TX N/A Lehigh Valley Health Services Inc 2100 Mack Blvd Allentown PA 181035622 232263665 Health Care Related Services PA N/A C 0 Lehigh Valley Anesthesia Services PC 2100 Mack Blvd Allentown PA 181035622 233096124 Anesthesia Services PA N/A C 0 Westgate Professional Center Inc 2100 Mack Blvd Allentown PA 181035622 231657333 Real Estate Rentals PA Lehigh Valley Hospital - Muhlenberg C -42081 5282733 1.00000 0 Lehigh Valley Physician Hospital Organization Inc 2100 Mack Blvd Allentown PA 181035622 232750430 Health Care Related Services PA N/A C 0 Hazleton Saint Joseph Medical Office Building Inc 700 E Broad St Hazleton PA 18201 232500981 Medical Office Rental PA N/A C 0 1 0 0 1 1 0 0 0 0 1 1 1 1 1 1 1 1 0 1 Westgate Professional Center Inc K 66000 Fair Market Value