2016-05-13T10:32:02-05:00 2015-06-30 ERNST & YOUNG US LLP 1900 SCRIPPS CENTER 312 WALNUT ST CINCINNATI OH 45202 990 2014-07-01 621684203 Mercy Health Northwest Arkansas Communities % BENNY J STOVER CPA MERC 3145796100 2710 Rife Medical Lane Rogers AR 72758 BENNY J STOVER VP FINANCE 2016-05-04 JULIE L SPARKS P01268401 5136121400 2014 2016-08-17 19:52:53Z Eric Pianalto 2710 Rife Medical Lane Rogers AR 72758 95373826 false 0928 X www.mercy.net X 1997 AR AS THE SISTERS OF MERCY BEFORE US, WE BRING TO LIFE THE HEALING MINISTRY OF JESUS THROUGH OUR COMPASSIONATE CARE AND EXCEPTIONAL SERVICE. 16 13 818 13 0 0 0 74225306 89685382 12157 11761 1116956 5676683 75354419 95373826 771 1000 0 0 70065241 84829338 0 0 0 26155927 31274743 96221939 116105081 -20867520 -20731255 17672427 21533410 121042407 145634645 -103369980 -124101235 X AS THE SISTERS OF MERCY BEFORE US, WE BRING TO LIFE THE HEALING MINISTRY OF JESUS THROUGH OUR COMPASSIONATE CARE AND EXCEPTIONAL SERVICE. false false 35954370 31352273 FAMILY MEDICINE PHYSICIAN SERVICES: MERCY HEALTH SYSTEM OF NWA'S FAMILY MEDICINE PHYSICIAN SERVICES ARE COMPRISED OF 34 BOARD CERTIFIED FAMILY MEDICINE PHYSICIANS AND 15 MID-LEVELS, WHO PROVIDED PRIMARY MEDICINE SERVICES TO PATIENTS RANGING FROM ONE YEAR OLD THROUGH ADULTHOOD. THESE SERVICES ARE OFFERED IN APPROXIMATELY 11 LOCATIONS THROUGHOUT BENTON COUNTY, ARKANSAS AND THE SURROUNDING SERVICE AREA. DURING THE YEAR, 217,028 OFFICE VISITS WERE PROVIDED TO PATIENTS. 12045956 6952378 CARDIOVASCULAR SERVICES: MERCY HEALTH SYSTEM OF NWA'S CARDIOVASCULAR PHYSICIAN SERVICES ARE COMPRISED OF 7 CARDIOLOGISTS, 1 CARDIOVASCULAR SURGEON, AND 8 MID-LEVEL PROVIDERS. THESE PROVIDERS SERVE PATIENTS THROUGHOUT BENTON COUNTY, ARKANSAS AND THE SURROUNDING SERVICE AREA, WHO HAVE HEART RELATED MEDICAL NEEDS. DURING THE YEAR, 23,566 OFFICE VISITS WERE PROVIDED TO PATIENTS. 7865167 6892305 ORTHOPEDIC PHYSICIAN SERVICES: MERCY HEALTH SYSTEM OF NWA'S ORTHOPEDIC PHYSICIAN SERVICES IS COMPRISED OF 6 BOARD CERTIFIED SURGEONS AND 2 APC PRACTITIONERS, WHO PRIVIDED SPECIALIZED CARE FOR A VARIETY OF MUSCULOSKELETAL DISORDERS AND INJURIES TO PATIENTS THROUGHOUT BENTON COUNTY, ARKANSAS AND THE SURROUNDING SERVICE AREA. OUR BOARD CERTIFIED SURGEONS SPECIALIZE IN ORTHOPEDIC CARE, SPORTS MEDICINE AND TREATMENT FOR ORTHOPEDIC TRAUMA WITH YOUR MOBILITY AS THEIR FOCUS. DURING THE YEAR, 20,990 OFICE VISITS WERE PROVIDED TO PATIENTS. 48030288 1000 49945780 103895781 true false false false false false false false false false true false false false true false false true false false false false false false false false false false false true false false false false false false true false false false false false false true true true false false true X 0 0 818 true false false false false false false false false false false X 16 13 false false false false true true true true true false false true true true true true true false true false X BENNY J STOVER CPA 4793382903 2710 RIFE MEDICAL LANE ROGERS AR 72758 X Bergant Paul Board member 1.0 0.0 X 0 0 0 Burke RSM Sr Richard Mary Board member 1.0 41.0 X 0 0 0 Callahan Wayne Board member 1.0 1.0 X 0 0 0 Donnell Hugh G Physician & Board member 55.0 5.0 X 448171 0 51139 Evans RSM Sr Gayle Board member 1.0 25.0 X 0 0 0 Faddis MD Lance Physician & Board member 60.0 0.0 X 296955 0 35236 Ford Rollin Board member 1.0 0.0 X 0 0 0 Lawson Randy Board member 1.0 1.0 X 0 0 0 Lipscomb Tabitha Board member 1.0 0.0 X 0 0 0 Mahan Paul Board member 1.0 0.0 X 0 0 0 Morales Herbert Board member 1.0 0.0 X 0 0 0 Rivaldo Cragi Board member 1.0 0.0 X 0 0 0 Rogers Chris Board member 1.0 0.0 X 0 0 0 Shewmaker Daniel Board member 1.0 0.0 X 0 0 0 Stuppy Robert J Physician & Board member 60.0 0.0 X 662615 0 37453 Trammel Dick Board member 1.0 1.0 X 0 0 0 Pianalto Eric Chief executive officer 30.0 30.0 X 0 415891 160192 Reynolds Scott CFO - Central Communities 2.0 58.0 X 0 335307 57174 Burke James Regional VP-Legal 4.0 56.0 X 0 312724 35964 Goss Stephen Physician executive 60.0 0.0 X 365639 0 109149 Halstead John VP-Mission 20.0 40.0 X 0 154238 19128 Hughes Steven L Chief administrative officer 60.0 0.0 X 118842 57143 35710 Marion Tanya Regional VP-Human resources 3.0 57.0 X 0 225754 55433 Stover Benny J VP-Finance 20.0 40.0 X 194277 0 26694 Swope Jon PRESIDENT, CENTRAL COMMUNITIES 2.0 58.0 X 0 779022 184000 Thompson Andrew COO 60.0 0.0 X 218978 43088 29207 Chauvin Edgar J Physician 60.0 0.0 X 944245 0 34782 El-Shafei Amr Physician 60.0 0.0 X 1235949 0 23841 Randolph Gannon Physician 60.0 0.0 X 835571 0 20068 Riley Philip Physician 60.0 0.0 X 687214 0 22542 Weathers Lance Physician 60.0 0.0 X 691051 0 32731 Street Scott Former officer 0.0 0.0 X 0 416772 9610 Vitiello Jonathan Former officer 0.0 60.0 X 0 517431 114816 Barclay Richard F Former key employee 0.0 60.0 X 204677 0 28247 Day Bradley Kim Former key employee 0.0 50.0 X 0 6686607 29342 Little-Smith Karen Former key employee 0.0 60.0 X 0 129856 17238 Stewart Michele Former key employee 0.0 60.0 X 0 326828 113549 6904184 10400661 1283245 141 true true false MERCY MEDICAL CENTER PO BOX 504664 ST LOUIS MO 63150 LAB SERVICES 312636 M MODAL 9009 CAROTHERS PARKWAY SUITE C2 FRANKLIN TN 37067 TRANSCRIPTION SERV 224319 MAYO MEDICAL LABS 200 SW First Street ROCHESTER MN 55805 Lab Services 213081 WEATHERBY LOCUMS INC PO Box 972633 DALLAS TX 75397 Physician Staffing 114600 4 0 NET PATIENT SERVICE REVENUE 621111 89444038 89444038 OTHER OPERATING REVENUE 900099 241344 241344 89685382 10761 10761 0 0 219329 0 219329 0 219329 219329 1000 1000 1000 1000 0 0 0 HOSPITAL SUPPORT 900099 4007933 4007933 COMP PRIM CARE PILOT PROG 900099 701340 701340 CAPITATION REVENUE 900099 748081 748081 5457354 95373826 95142736 231090 1000 1000 0 0 0 2677045 2412815 264230 109336 91388 17948 68641776 62632936 6008840 2639738 2224349 415389 7375549 5989354 1386195 3385894 2987548 398346 0 120668 120668 300 300 0 0 0 2430182 1955283 474899 0 61645 6298 55347 1359763 1070929 288834 19514 11932 7582 0 5293473 4709504 583969 198610 103971 94639 0 1065 1065 6569 6569 0 1443296 1073588 369708 1418678 852284 566394 BAD DEBT 4670465 4670465 REPAIRS & MAINTENANCE 204878 170561 34317 SHARED SERVICE FEES 1688873 1540832 148041 DRUGS & MEDICAL SUPPLIES 11233865 11213533 20332 1122899 177211 945688 116105081 103895781 12209300 0 7707 0 0 0 0 0 7180699 7866422 0 0 0 0 865775 684019 630205 677183 160636 108642 22124124 9970561 8827405 12153563 0 0 0 0 0 0 0 43581 0 0 17672427 21533410 7720012 7024095 0 0 0 0 0 0 0 0 0 0 1197124 779382 0 0 112125271 137831168 121042407 145634645 X -103369980 -124101235 0 0 0 0 -103369980 -124101235 17672427 21533410 -20731255 X X false true X true false X 0 0 0 0 0 0 58695633 61696202 64599930 74225306 89685382 348902453 0 0 0 58695633 61696202 64599930 74225306 89685382 348902453 0 0 0 0 0 348902453 -18223 15342 64245 207407 230090 498861 0 -18223 15342 64245 207407 230090 498861 0 417373 573879 1532178 921706 5457354 8902490 59094783 62285423 66196353 75354419 95372826 358303804 0.97376 0.98654 0.00139 0.00093 X FORM 990, SCHEDULE A, PART III, LINE 12 OTHER INCOME INCLUDED SERVICES PROVIDED TO SUPPORT THE HOSPITAL. 1828208 1828208 6028085 1563189 4464896 4668560 3139518 1529042 8750684 5061571 3689113 848587 206283 642304 12153563 0 DUE TO AFFILIATES 137831168 137831168 X ASC 740 Footnote PRIMARILY ALL OF THE MERCY HEALTH ENTITIES ARE RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(A) OF THE INTERNAL REVENUE CODE AS CHARITABLE ORGANIZATIONS QUALIFYING UNDER INTERNAL REVENUE CODE SECTION 501(C)(3), BY VIRTUE OF IRS DETERMINATION LETTERS OR INCLUSION IN THE OFFICIAL CATHOLIC DIRECTORY. MERCY COMPLETED AN ANALYSIS OF ITS TAX POSITIONS IN ACCORDANCE WITH APPLICABLE ACCOUNTING GUIDANCE AND DETERMINED THAT NO AMOUNTS WERE REQUIRED TO BE RECOGNIZED IN THE CONSOLIDATED FINANCIAL STATEMENTS AT JUNE 30, 2015 OR 2014. X X X true true true true false false false false false true false Donnell Hugh G Physician & Board member 379726 0 32402 0 36043 0 27977 23162 0 499310 0 0 Faddis MD Lance Physician & Board member 249209 0 20306 0 27440 0 12763 22473 0 332191 0 0 0 Stuppy Robert J Physician & Board member 602769 0 0 0 59846 0 13422 24031 0 700068 0 0 0 Pianalto Eric Chief executive officer 0 321256 0 61685 0 32950 0 142068 0 18124 0 576083 0 0 Reynolds Scott CFO - Central Communities 0 243075 0 49138 0 43094 0 43356 0 13818 0 392481 0 0 Burke James Regional VP-Legal 0 240363 0 22754 0 49607 0 19698 0 16266 0 348688 0 0 Goss Stephen Physician executive 282338 0 27603 0 55698 0 95167 13982 0 474788 0 0 0 Halstead John VP-Mission 0 139696 0 13173 0 1369 0 2877 0 16251 0 173366 0 0 Hughes Steven L Chief administrative officer 104382 30856 20118 14460 6169 12378 12378 7145 3809 138365 73330 0 0 Marion Tanya Regional VP-Human resources 0 165145 0 25369 0 35240 0 38285 0 17148 0 281187 0 0 Stover Benny J VP-Finance 158829 0 16492 0 18956 0 9764 16930 0 220971 0 0 0 Swope Jon PRESIDENT, CENTRAL COMMUNITIES 0 612178 0 115050 0 51794 0 165114 0 18886 0 963022 0 0 Thompson Andrew COO 143451 37886 27061 0 48466 5202 12078 12875 4254 243931 47342 0 0 Chauvin Edgar J Physician 801610 0 66850 0 75785 0 10642 24140 0 979027 0 0 0 El-Shafei Amr Physician 1050157 0 135477 0 50315 0 11953 11888 0 1259790 0 0 0 Randolph Gannon Physician 765771 0 25000 0 44800 0 0 20068 0 855639 0 0 0 Riley Philip Physician 589382 0 50000 0 47832 0 12028 10514 0 709756 0 0 0 Weathers Lance Physician 606367 0 0 84684 0 8925 23806 0 723782 0 0 0 Barclay Richard F Former key employee 154893 0 13091 0 36693 0 15482 12765 0 232924 0 0 0 Day Bradley Kim Former key employee 0 6291206 0 253000 0 142401 0 19239 0 10103 0 6715949 0 5998919 Little-Smith Karen Former key employee 0 100665 0 5155 0 24036 0 10622 0 6616 0 147094 0 0 Stewart Michele Former key employee 0 257203 0 46029 0 23596 0 95686 0 17863 0 440377 0 0 Street Scott Former officer 0 0 156044 0 260728 0 9610 0 0 426382 0 0 Vitiello Jonathan Former officer 0 389769 0 91421 0 36241 0 96519 0 18297 0 632247 0 0 FORM 990, SCHEDULE J, PART I, LINE 1 CHARTER TRAVEL IS PROVIDED TO CERTAIN EMPLOYEES AS AND WHEN APPROPRIATE, AND AS DEEMED NECESSARY FOR BUSINESS TRAVEL. AFTER CHARTER TRAVEL APPROVAL HAS BEEN GRANTED IN ACCORDANCE WITH THE FINANCIAL JUSTIFICATION PROCESS, THE APPROVED CHARTER TRAVEL FOR BUSINESS IS A REIMBURSABLE EXPENSE WHICH IS NOT TAXABLE TO THE EMPLOYEES. TRAVEL FOR COMPANIONS IS PROVIDED IN RARE INSTANCES AND IN ACCORDANCE WITH THE CO-WORKER TRAVEL AND OTHER EXPENSE POLICY AND PROCEDURES. WHERE COMPANION TRAVEL HAS RESULTED IN A TAXABLE EVENT, THE EMPLOYEES ARE TAXED FOR SUCH TRAVEL. HOUSING BENEFITS ARE PROVIDED THROUGH A RELOCATION PROGRAM IN ACCORDANCE WITH COMPANY POLICY. SUCH BENEFITS ARE SUBJECT TO TAX TO THE EMPLOYEE. PAYMENT BY THE COMPANY OF COSTS FOR TEMPORARY HOUSING BY EMPLOYEES FOR THE CONVENIENCE OF THE COMPANY IS MADE IN ACCORDANCE WITH THE CO-WORKER TRAVEL AND OTHER EXPENSE POLICY AND PROCEDURES. AS A REIMBURSABLE EXPENSE, THIS TYPE OF LODGING IS NOT TAXABLE TO THE EMPLOYEE. FORM 990, SCHEDULE J, PART I, QUESTION 3 MERCY HEALTH NORTHWEST ARKANSAS COMMUNITIES RELIES ON A RELATED ORGANIZATION; REFER TO SCHEDULE O, PART VI, QUESTION 15A AND 15B FOR THE PROCESS THE RELATED ORGANIZATION FOLLOWS. FORM 990, SCHEDULE J, PART I, QUESTION 4A THE FOLLOWING INDIVIDUAL RECEIVED A SEVERANCE PAYMENT DURING CALENDAR YEAR 2014: SCOTT STREET, $260,728. FORM 990, SCHEDULE J, PART I, QUESTION 4B MERCY OFFERS SUPPLEMENTAL RETIREMENT PLANS TO CERTAIN EXECUTIVES WHICH PROVIDE BENEFITS UPON VESTING DATE BASED ON COMPENSATION, AGE AT THE TIME OF BENEFIT COMMENCEMENT, LENGTH OF SERVICE WITH THE COMPANY AND/OR ITS AFFILIATES AND LENGTH OF TENURE IN THE PLAN. THE INDIVIDUALS REPORTABLE ON THIS RETURN WHO PARTICIPATE IN THE SUPPLEMENTAL RETIREMENT PLANS INCLUDE: ERIC PIANALTO, JAMES BURKE, JONATHAN VITIELLO, STEPHEN GOSS, TANYA MARION, JON SWOPE, AND MICHELE STEWART. THE AMOUNT OF ALL ACCRUED BENEFITS IS INCLUDED IN COMPENSATION AMOUNTS PROVIDED IN SCHEDULE J, PART II, COLUMN (C). FORM 990, SCHEDULE J, PART I, QUESTION 7 MERCY HEALTH PROVIDES A NON-FIXED BONUS PLAN FOR WHICH CERTAIN TIERS OF ITS EMPLOYEES ARE ELIGIBLE. FOR FISCAL YEAR 2015 (JULY 1, 2014 - JUNE 30, 2015), PAYMENT OF ALL OR PART OF THE BONUS WAS CONTINGENT UPON ATTAINMENT OF CERTAIN FINANCIAL TARGETS AND NON-FINANCIAL GOALS DEEMED NECESSARY BY MERCY. PAYMENTS ARE MADE ANNUALLY IN OCTOBER FOLLOWING (I) THE CONCLUSION OF THE FISCAL YEAR AND (II) DETERMINATION OF GOAL ACHIEVEMENT. BONUS OPPORTUNITIES ARE TIERED PERCENTAGES AND ARE DEPENDENT UPON THE LEADERSHIP LEVEL AND ATTAINMENT PERCENTAGE. MERCY'S ATTAINMENT OF FINANCIAL TARGETS AND NON-FINANCIAL GOALS IS REVIEWED BY THE COMPENSATION COMMITTEE OF MERCY HEALTH AND IS TAKEN INTO ACCOUNT WHEN ANALYZING EXECUTIVE COMPENSATION FOR REASONABLENESS. FORM 990, SCHEDULE J, PART II THE AMOUNT REPORTED FOR BRADLEY (KIM) DAY IN COLUMN (F) IS INCLUDED IN COLUMN B (I) AS BASE COMPENSATION. THIS IS A PAYOUT OF THE SUPPLEMENTAL RETIREMENT PLAN AND WAS INCLUDED IN COLUMN (C) OF PREVIOUSLY FILED FORMS 990. Ashley Goss Family of key employee 109336 Employment false FORM 990, PART III, QUESTION 4D DESCRIPTION OF OTHER PROGRAM SERVICES MERCY HEALTH NORTHWEST ARKANSAS COMMUNITIES (MHNWAC) AND ITS MEMBER HEALTH CARE FACILITIES PROVIDE QUALITY CARE REGARDLESS OF RACE, CREED, GENDER, NATIONAL ORIGIN, HANDICAP, AGE, OR ABILITY TO PAY. IN ACTIVE PURSUIT OF THE ABOVE STATED MISSION, MHNWAC PROVIDED 35,099 INPATIENT SERVICE DAYS OF ACUTE OR SUB-ACUTE CARE. MHNWAC HAD ACUTE NEWBORN DISCHARGES OF 1,568, NEWBORN PATIENT DAYS WERE 2,728, RESPONDED TO 53,492 EMERGENCY ROOM ENCOUNTERS, MADE 42,319 HOME HEALTH CARE VISITS AND COMPLETED 175,377 OUTPATIENT VISITS. COMMUNITY OUTREACH/BENEFIT PROGRAMS INCLUDE SUPPORT GROUPS FOR CURRENT AND PAST PATIENTS (DIABETIC, CARDIAC, ETC.), EXPECTING/NEW PARENTS (CHILD BIRTH CLASSES, VARIOUS SUPPORT GROUPS, ETC.), AND EMPLOYEES (EDUCATIONAL ASSISTANCE PROGRAMS, ETC.), LOCAL/SURROUNDING COMMUNITY (WELLNESS PROGRAMS, HEALTH FAIRS, HOME HEALTH PROGRAMS, ETC.) RELIEF FROM FINANCIAL BURDEN OF HEALTH CARE SERVICES TO THE INDIGENT CONSISTS OF CHARGES OF $19,386,519 FOR CHARITY CARE PROVIDED WITH A COST OF RELATED SERVICES. FORM 990, PART V, QUESTION 1A FORM 1099/1096 FILING VENDORS FOR THE FILING ORGANIZATION ARE PAID BY MERCY HEALTH (EIN 43-1423050). AS SUCH, ALL REQUIRED FORM 1099 AND FORM 1096 REPORTING IS MADE FOR THE ENTIRE MERCY HEALTH SYSTEM (WITH LIMITED EXCEPTIONS) UNDER THE MERCY HEALTH EIN. FORM 990, PART VI, LINE 6A, LINE 7A, 7B CLASSES OF MEMBERS OR STOCKHOLDERS THE FILING ORGANIZATION HAS A SOLE CORPORATE MEMBER, MERCY HEALTH. THE FOLLOWING CORPORATE POWERS AND RESPONSIBILITIES SHALL BE RESERVED SOLELY UNTO THE CORPORATE MEMBER: -TO APPROVE AND ESTABLISH THE MISSION AND PHILOSOPHY ACCORDING TO WHICH THE CORPORATION AND ALL CORPORATIONS CONTROLLED BY THE CORPORATION SHALL OPERATE; -TO ADOPT OR AMEND THE ARTICLES OF INCORPORATION AND BYLAWS OF MERCY HOSPITAL ROGERS; -TO ADOPT OR AMEND THE ARTICLES OF INCORPORATION AND BYLAWS OF THE CORPORATION, EXCEPT THAT: -ANY AND ALL AMENDMENTS TO THE BYLAWS OF THE CORPORATION THAT MATERIALLY AFFECT THE EXISTENCE OR OPERATIONS OF THE MEDICAL GROUP BOARD, AS PROVIDED IN SECTION 8.2, MUST BE APPROVED BY THE MEDICAL GROUP BOARD, AND ANY AND ALL AMENDMENTS TO THE BYLAWS OF THE CORPORATION THAT MATERIALLY AFFECT THOSE POWERS RESERVED SOLELY TO THE MEDICAL GROUP, AS DESCRIBED IN SECTION 8.3, MUST BE APPROVED BY THE MEDICAL GROUP BOARD; -TO APPROVE AND APPOINT THE THREE (3) MEDICAL GROUP PHYSICIAN DIRECTORS AND ALL COMMUNITY REPRESENTATIVE DIRECTORS ON THE BOARD FROM NOMINATIONS SUBMITTED BY THE NOMINATING COMMITTEE; -TO APPOINT THE (2) MERCY HEALTH DIRECTORS ON THE BOARD; -TO APPOINT THE PRESIDENT/CEO OF THE CORPORATION, WHO SHALL SERVE AS AN EX-OFFICIO DIRECTOR ON THE BOARD WITH VOTE; -TO REMOVE ALL DIRECTORS ON THE BOARD WITH OR WITHOUT CAUSE; -TO APPROVE OR AMEND THE OVERALL STRATEGIC, LONG RANGE, AND HEALTH MANPOWER DEVELOPMENT PLANS, GOALS, AND OBJECTIVES OF THE CORPORATION OR ANY CORPORATION CONTROLLED BY THE CORPORATION; -TO APPROVE THE CONSOLIDATED OPERATING, CAPITAL, AND CONSTRUCTION BUDGETS(INCLUDING AGGREGATE PHYSICIAN COMPENSATION LEVELS) FOR THE CORPORATION OR ANY CORPORATION CONTROLLED BY THE CORPORATION AND CHANGES IN THE BUDGETS IN EXCESS OF AN AMOUNT ESTABLISHED FROM TIME TO TIME BY THE CORPORATE MEMBER; -TO LEASE OR SELL ANY OF THE ASSETS OF THE CORPORATION OR ANY CORPORATION CONTROLLED BY THE CORPORATION IN EXCESS OF AN AMOUNT ESTABLISHED FROM TIME TO TIME BY THE CORPORATE MEMBER; -TO ENCUMBER ANY OR ALL OF THE ASSETS OF THE CORPORATION OR ANY CORPORATION CONTROLLED BY THE CORPORATION; -TO AUTHORIZE AND APPROVE THE INCURRENCE OF DEBT BY THE CORPORATION OR ANY CORPORATION CONTROLLED BY THE CORPORATION (OTHER THAN DEBT INCURRED FOR THE ACQUISITION OF GOODS THAT ARE ACQUIRED IN THE ORDINARY COURSE OF BUSINESS) AND TO GRANT ANY SECURITY INTERESTS, PLACE ANY ENCUMBRANCES, ENTER INTO ANY COVENANTS, AND EXECUTE ANY DOCUMENTS AND TAKE ANY ACTIONS NECESSARY OR APPROPRIATE IN CONNECTION WITH THE INCURRENCE OF SUCH DEBT; -TO MERGE, DISSOLVE, OR ABANDON THE CORPORATION OR ANY CORPORATION CONTROLLED BY THE CORPORATION; AND, -TO APPROVE THE CREATION, OWNERSHIP OR ACQUISITION OF, OR AFFILIATION WITH, ANY OTHER ORGANIZATION BY THE CORPORATION. FORM 990, PART VI, QUESTION 11B DSCR THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM, USING INFORMATION PROVIDED BY THE FILING ORGANIZATION. A DRAFT FORM 990 IS REVIEWED BY THE FILING ORGANIZATION'S FINANCE TEAM, INCLUDING THE MANAGER OF ACCOUNTING AND THE VICE-PRESIDENT OF FINANCE. THE DRAFT FORM 990 IS ALSO REVIEWED BY MERCY HEALTH'S TAX DEPARTMENT, TO ENSURE ACCURACY AND CONSISTENCY WITH OTHER RELATED ORGANIZATIONS' FORM 990S. AFTER QUESTIONS ARISING FROM THE VARIOUS REVIEWS ARE ADDRESSED AND INCORPORATED INTO THE FORM 990, A REVISED DRAFT IS PROVIDED TO THE FILING ORGANIZATION'S LEADERSHIP TEAM, INCLUDING THE CFO AND CEO, FOR REVIEW. ONCE REVIEWED AND APPROVED BY THE FILING ORGANIZATION'S LEADERSHIP TEAM, THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS FOR REVIEW; IT IS THEN SIGNED AND FILED WITH THE IRS. FORM 990, PART VI, QUESTION 12C DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST OFFICERS, DIRECTORS, KEY EMPLOYEES AND OTHER DISQUALIFIED PERSONS ARE REQUIRED TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE ANNUALLY AND DID SO IN THE NORMAL COURSE FOR THE YEAR ENDED JUNE 30, 2015. THIS PROCESS IS ADMINISTERED AT THE MERCY HEALTH LEVEL BY MERCY'S BUSINESS RISK (INTERNAL AUDIT) DEPARTMENT. THE QUESTIONNAIRES ARE REVIEWED WITH LEADERSHIP AT THE LOCAL LEVEL AND POTENTIAL CONFLICTS DISCUSSED AND RESOLVED. THE CONFLICTS AND THEIR RESPECTIVE RESOLUTIONS ARE SHARED AT THE MERCY LEVEL WITH A TEAM INCLUDING MERCY'S CHIEF FINANCIAL OFFICER, CHIEF COMPLIANCE OFFICER AND OTHER MEMBERS OF FINANCE, LEGAL AND HR. SUMMARY RESULTS ARE REVIEWED WITH MERCY'S STEWARDSHIP COMMITTEE (FORMERLY FINANCE, AUDIT AND COMPLIANCE COMMITTEE) OF THE BOARD OF DIRECTORS. FORM 990, PART VI, QUESTIONS 15A & 15B OFFICERS & POSITIONS FOR WHICH PROCESS WAS USED, & YEAR PROCESS WAS BEGUN FOR THOSE CLASSIFIED AS OFFICERS (AND THUS DISQUALIFIED PERSONS), THE ORGANIZATION RELIES UPON MERCY HEALTH, WHICH USES THE FOLLOWING TO ESTABLISH THE COMPENSATION: EXTERNAL MARKET SALARY SURVEYS, EXTERNAL MARKET SALARY STUDIES, ENGAGEMENT OF AN INDEPENDENT COMPENSATION CONSULTANT, AND REVIEW/APPROVAL OF COMPENSATION BY THE COMPENSATION COMMITTEE OF THE BOARD OF MERCY HEALTH. FOR THOSE CLASSIFIED AS KEY EMPLOYEES, THE ORGANIZATION USES THE FOLLOWING TO ESTABLISH THE COMPENSATION: EXTERNAL MARKET SALARY SURVEYS, EXTERNAL MARKET SALARY STUDIES, AND REVIEW/APPROVAL OF EXECUTIVE MANAGEMENT. COMPENSATION REVIEWS ARE COMPLETED ON AN ANNUAL BASIS AND A REVIEW WAS COMPLETED DURING THE REPORTING YEAR. FORM 990, PART VI, QUESTION 19 AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMT TO GEN PUBLIC GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST BUT ARE NOT PUBLISHED PUBLICLY. FORM 990, PART VII, SECTION A, COLUMN B AVERAGE HOURS PER WEEK THE HOURS PER WEEK DISCLOSED IN PART VII IS THE AVERAGE HOURS THE LISTED PERSON WORKED OR DEVOTED PER WEEK WHILE EMPLOYED OR ASSOCIATED WITH THE FILING ORGANIZATION AND RELATED ORGANIZATIONS (IF APPLICABLE). FORM 990, PART XII, QUESTION 2C AUDIT OF FINANCIAL STATEMENTS THE FILING ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED IN MERCY HEALTH AND SUBSIDIARIES ANNUAL FINANCIAL STATEMENT AUDIT. MERCY HEALTH AND SUBSIDIARIES RECEIVED AN UNQUALIFIED OPINION FROM THE EXTERNAL AUDITORS FOR FISCAL 2015 (THE TAX YEAR CURRENTLY BEING REPORTED). HOWEVER, NO SEPARATE AUDIT OPINION WAS ISSUED ON THE FINANCIAL STATEMENTS OF THE FILING ORGANIZATION. THE ULTIMATE RESPONSIBILITY FOR OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT AND SELECTION OF THE EXTERNAL AUDITOR LIES WITH THE STEWARDSHIP COMMITTEE (FORMERLY FINANCE, AUDIT, AND COMPLIANCE COMMITTEE) OF THE MERCY HEALTH BOARD OF DIRECTORS. AUDIT RESULTS ARE COMMUNICATED TO THIS COMMITTEE. Casa de Misericordia 1602 McClelland Street Laredo TX 78044 742912461 SHELTER TX 501c3 7 MM Laredo true Jefferson Land Company Inc 14528 S Outer Forty Ste 100 Chesterfield MO 63017 431330360 Holding co MO 501c2 MH Jffrson true McAuley Portfolio Management Company 14528 S Outer Forty Ste 100 Chesterfield MO 63017 261708048 PORT MGMT MO 501c3 11b Mercy Health true Mercy ACO Clinical Services Inc 14528 S Outer Forty Ste 100 Chesterfield MO 63017 464504901 VIRTUAL CARE MO 501c3 3 Mercy Health true Mercy Clinic East Communities 645 Maryville Ctr Dr Ste 100 St Louis MO 63141 431771217 PHYS GROUP MO 501c3 9 MH East Comm true Mercy Clinic Fort Smith Communities 7301 Rogers Avenue Fort Smith AR 72903 261318597 PHYS CLINIC AR 501c3 3 MH FS COMM true Mercy Clinic Oklahoma Communities Inc 4300 W Memorial Road Oklahoma City OK 73120 270473057 PHYS GROUP OK 501c3 3 MH Ok Comm true Mercy Clinic Springfield Communities 1965 Fremont Street Suite 2950 Springfield MO 65804 431560263 PHYS GROUP MO 501c3 3 MH SF COMM true Mercy Family Center 14528 S Outer Forty Ste 100 Chesterfield MO 63017 721069468 COUNSELING MO 501c3 7 Mercy Health true Mercy Health Foundation 14528 S Outer Forty Ste 100 Chesterfield MO 63017 200901499 Foundation MO 501c3 11b Mercy Health true Mercy Health 14528 S Outer Forty Ste 100 Chesterfield MO 63017 431423050 Corp Office MO 501c3 1 NA false Mercy Health East Communities 14528 S Outer Forty Ste 100 Chesterfield MO 63017 431718408 HLTH SYSTEM MO 501c3 11b Mercy Health true Mercy Health East Communities - Southern 14528 S Outer Forty Ste 100 Chesterfield MO 63017 461412322 HLTH SYSTEM MO 501c3 11b MH East Comm true Mercy Health Fort Smith Communities 7301 Rogers Avenue Fort Smith AR 72917 261318515 Holding Co AR 501c3 11b Mercy Health true Mercy Health Foundation Ada 430 N Monte Vista Street Ada OK 74820 463596274 Foundation OK 501c3 11a MH Ada Inc true Mercy Health Foundation Ardmore 1011 14th Avenue NW Ardmore OK 73401 710962525 Foundation OK 501c3 11a MH Ardmore true Mercy Health Foundation Berryville 214 Carter Street Berryville AR 72616 710759301 Foundation AR 501c3 11a MH Bryville true Mercy Health Foundation Fort Scott 401 Woodland Hills Blvd Fort Scott KS 66701 481077073 Foundation KS 501c3 11c M KS Comm true Mercy Health Foundation Hot Springs 300 Werner Street Hot Springs AR 71913 710804718 Foundation AR 501c3 11b MC Srvcs true Mercy Health Foundation Independence 800 W Myrtle Independence KS 67301 481079981 Foundation KS 501c3 11a M KS Comm true Mercy Health Foundation Jefferson 1400 US Highway 61 South Festus MO 63028 462797051 Foundation MO 501c3 11b MH E Comm SR true Mercy Health Foundation Joplin 100 Mercy Way Joplin MO 64804 270906136 Foundation MO 501c3 11a MH SWMK COMM true Mercy Health Foundation NW Arkansas 2710 Rife Medical Lane Rogers AR 72758 710601687 Foundation AR 501c3 11c MH ROGERS true Mercy Health Foundation of Oklahoma 4300 W Memorial Road Oklahoma City OK 73120 454732301 Foundation OK 501c3 11a MH Ok Comm true Mercy Health Foundation Oklahoma City 4300 W Memorial Road Oklahoma City OK 73120 463184231 Foundation OK 501c3 11a MH OK COMM true Mercy Health Foundation Springfield 1235 E Cherokee Street Springfield MO 65804 320195818 Foundation MO 501c3 11b MH SF COMM true Mercy Health Foundation St Louis 14528 S Outer Forty Ste 100 Chesterfield MO 63017 562410020 Foundation MO 501c3 11b MH East Comm true Mercy Health Foundation Washington 901 E Fifth Street Washington MO 63090 562410022 Foundation MO 501c3 11b MH East Comm true Mercy Health Oklahoma Communities Inc 4300 W Memorial Road Oklahoma City OK 73120 731453048 Holding co OK 501c3 11b Mercy Health true Mercy Health Southwest MOKS Communities 100 Mercy Way Joplin MO 64804 300584463 Hlth System MO 501c3 11b Mercy Health true Mercy Health Springfield Communities 1235 E Cherokee Street Springfield MO 65804 431856028 Hlth System MO 501c3 11b Mercy Health true Mercy Home Health Berryville 804 W Freeman Suite 4 Berryville AR 72616 870781247 Home Health AR 501c3 11c MH SF true Mercy Hospital Ada Inc 430 N Monte Vista Street Ada OK 74820 462288155 Hospital OK 501c3 3 MH Ok Comm true Mercy Hospital Ardmore Inc 1011 14th Avenue NW Ardmore OK 73401 731500629 Hospital OK 501c3 3 MH Ok Comm true Mercy Hospital Aurora 500 Porter Avenue Aurora MO 65605 431936696 Hospital MO 501c3 3 MH SF COMM true Mercy Hospital Berryville 214 Carter Street Berryville AR 72616 710759299 Hospital AR 501c3 3 MH SF COMM true Mercy Hospital Booneville 880 West Main Street Booneville AR 72927 463851119 Hospital AR 501c3 3 MH FT SMITH true Mercy Hospital Carthage 3125 Dr Russell Smith Way Carthage MO 64836 453808607 Hospital MO 501c3 3 MH SWMK COMM true Mercy Hospital Cassville 94 Main Street Cassville MO 65625 431936699 Hospital MO 501c3 3 MH SF COMM true Mercy Hospital Columbus 220 Pennsylvania Avenue Columbus KS 66725 270842031 Hospital MO 501c3 3 MH SWMK COMM true Mercy Hospital El Reno Inc 2115 Parkview Drive El Reno OK 73036 272716065 Hospital OK 501c3 3 MH OK CITY true Mercy Hospital Fort Smith 7301 Rogers Avenue Fort Smith AR 72917 710240352 Hospital AR 501c3 3 MH FS COMM true Mercy Hospital Healdton Inc 3462 Hospital Rd Healdton OK 73438 263173902 Hospital OK 501c3 3 MH ARDMORE true Mercy Hospital Jefferson 1400 Highway 61 South Festus MO 63028 430687077 Hospital MO 501c3 3 MH E Comm SR true Mercy Hospital Joplin 100 Mercy Way Joplin MO 64804 270814858 Hospital MO 501c3 3 MH SWMK COMM true Mercy Hospital Kingfisher Inc 1000 Kingfisher Regional Hosp Drive Kingfisher OK 73750 463433074 Hospital OK 501c3 3 MH Ok City true Mercy Hospital Lebanon 100 Hospital Drive Lebanon MO 65536 431767432 Hospital MO 501c3 3 MH SF COMM true Mercy Hospital Logan County Inc 200 South Academy Guthrie OK 73044 452998842 Hospital OK 501c3 3 MH OK CITY true Mercy Hospital Oklahoma City Inc 4300 W Memorial Road Oklahoma City OK 73120 730579285 Hospital OK 501c3 3 MH Ok Comm true Mercy Hospital Ozark 801 W River Street Ozark AR 72949 710689680 Hospital AR 501c3 3 MH FT SMITH true Mercy Hospital Paris 500 E Academy Paris AR 72855 710655753 Hospital AR 501c3 3 MH FT SMITH true Mercy Hospital Rogers 2710 Rife Medical Lane Rogers AR 72758 710294390 Hospital AR 501c3 3 MH NWAR COMM true Mercy Hospital Springfield 1235 E Cherokee Street Springfield MO 65804 440552485 Hospital MO 501c3 3 MH SF COMM true Mercy Hospital Tishomingo Inc 1000 South Byrd Tishomingo OK 73460 274433830 Hospital OK 501c3 3 MH ARDMORE true Mercy Hospital Waldron 1341 W 6th Street Waldron AR 72958 710557895 Hospital AR 501c3 3 MH FT SMITH true Mercy Hospital Watonga Inc 500 Clarence Nash Blvd Watonga OK 73772 455199762 Hospital OK 501c3 3 MH OK CITY true Mercy Hospitals East Communities 14528 S Outer Forty Ste 100 Chesterfield MO 63017 430653493 Hospital MO 501c3 3 MH East Comm true Mercy Kansas Communities Inc 401 Woodland Hills Blvd Ft Scott KS 66701 480956045 Hospital KS 501c3 3 MH SWMK COMM true Mercy Medical Research Institute 1235 E Cherokee Street Springfield MO 65804 870796305 Research MO 501c3 4 MH SF COMM true Mercy Ministries of Laredo 2500 Zacatecas Laredo TX 78046 200198462 outreach TX 501c3 7 Mercy Health true Mercy St Francis Hospital 100 W Highway 60 Mountain View MO 65548 440607149 Hospital MO 501c3 3 MH SF COMM true MHM Support Services 14528 S Outer Forty Ste 100 Chesterfield MO 63017 202553101 CTRL SYS FUNC MO 501c3 11b Mercy Health true Mission Clinical Services 300 Werner Street Hot Springs AR 71913 134239691 Child advoC AR 501c3 9 Mercy Health true St Edward Mercy Foundation 7301 Rogers Avenue Fort Smith AR 72917 237330425 Foundation AR 501c3 7 MH FT SMITH true St John's Children's Hospital Inc 1235 E Cherokee Street Springfield MO 65804 DSLVD 3/23/15 MO 501c3 3 MH SF COMM true St Mary's Hospital of Enid Oklahoma 14528 S Outer Forty Ste 100 Chesterfield MO 63017 730614655 DSLVD 3/23/15 OK 501c3 3 MH Ok Comm true The Sister M Cornelia Blasko Foundation 100 W Highway 60 Mountain View MO 65548 431873914 Foundation MO 501c3 11a M St Francis true Unity Ambulatory Care 14528 S Outer Forty Ste 100 Chesterfield MO 63017 431861745 DSLVD 3/23/15 MO 501c3 11c MH East Comm true Mercy Hospital Lincoln 1000 East Cherry Street Troy MO 63379 472219204 Hospital MO 501C3 3 MH EAST COMM true Merc Ambu Surg CTR 7301 Rogers Av Fort Smith AR 72903 710827721 AMBUL SURG CT AR NA RES OPT & INNOV 645 Maryville Centre Dr 200 St Louis MO 63141 460468368 CENTRAL DIST. MO NA SO OK DIAG CTR 1011 14TH Ave NW Ardmore OK 73401 431971232 MRI Services OK NA Fort Smith EMS 1701 S Greenwood Fort Smith AR 72901 710416615 Emergency Med AR NA St Ed Mer Med MOB 7301 Rogers Ave Fort Smith AR 72903 710554050 Office Building AR NA Frontenac Properties Inc 14528 S Outer Forty Suite 100 Chesterfield MO 63017 521914421 HOLDING COMP DE NA C-CORP true Inveno Health Inc 1235 E Cherokee Street Springfield MO 65804 264509571 Product Commer MO NA C-CORP true Mercy Commercial Services Inc 14528 South Outer Forty Suite 100 Chesterfield MO 63017 464953543 Parent of VCC MO NA C-CORP true Mercy Community Services Inc 401 Woodland Hills Blvd Fort Scott KS 66701 481078101 RETAIL PHARMACY KS NA C-CORP true Mercy Health Center Condominium Inc 4300 W Memorial Rd Oklahoma City OK 73120 680640970 Real estate OK NA C-CORP true Mercy Health Network of the Southern Reg 1011 14th Avenue NW Ardmore OK 73401 731580607 HOLDING COMP OK NA C-CORP true Mercy Health Network Inc 4300 W Memorial Road Oklahoma City OK 73120 731381689 HOLDING COMP OK NA C-CORP true Mercy Managed Care Corporation 4300 W Memorial Road Oklahoma City OK 73120 731441665 HOLDING COMP OK NA C-CORP true UHL Corp Inc 645 Maryville Centre Drive Suite 1 St Louis MO 63141 742499535 HOLDING COMP MO NA C-CORP true Unity Support Services Inc 645 Maryville Centre Drive Suite 1 St Louis MO 63141 431797042 PRACTICE MGT MO NA C-CORP true The Apothecary Services Inc PO Box 350 Crystal City MO 63019 431627267 RETAIL PHARMACY MO NA C-CORP true St John's Mercy Mail Order Inc 13645 Shoreline Drive Earth City MO 63045 431014222 Mail Odr pharmacy MO NA C-CORP true St John's Mercy PBM Inc 13175 Lakefront Drive Earth City MO 63045 743089567 Pharmacy benefit MO NA C-CORP true UH Holdings Inc 645 Maryville Centre Drive Suite 1 St Louis MO 63141 431845682 HOLDING COMP MO NA C-CORP true false false false false false false false false false false false false false false false true true false false Mercy Clinic Fort Smith Communities Q 72717 FMV Mercy Hospital Oklahoma City Inc Q 440371 FMV Mercy Health Springfield Communities P 78334 FMV Mercy Hospital Fort Smith Q 169702 FMV Mercy Health P 204996 FMV Mercy Hospital Rogers Q 25188454 FMV Mercy Hospital Springfield Q 1003304 FMV Mercy Kansas Communities Inc P 254786 FMV Mercy Hospital Joplin Q 272311 FMV Mercy Hospitals East Communities P 77082 FMV MHM Support Services Q 15406268 FMV Resource Optimization & Innovation LLC P 427858 FMV Mercy Health East Communities Q 4569265 FMV Mercy Clinic East Communities P 52714 FMV Mercy ACO Clinical Services Inc P 395886 FMV Form 990, Schedule R, Part II MERCY HOSPITALS EAST COMMUNITIES MERCY HOSPITALS EAST COMMUNITIES CONSISTS OF MERCY HOSPITAL ST. LOUIS, EIN 43-0653493, AND MERCY HOSPITAL WASHINGTON, EIN 43-1066883. Form 990, Schedule R, Part V MERCY HEALTH (MERCY) HAS MANY LEGAL ENTITIES WITHIN ITS STRUCTURE. LAWSON ERP SOFTWARE IS THE PRIMARY ACCOUNTING SOFTWARE USED BY MERCY AND THE MAJORITY OF THE INTERCOMPANY/RELATED ORGANIZATION TRANSACTIONS ARE PROCESSED THROUGH LAWSON. WITH THE CURRENT DESIGN OF THE ERP SYSTEM, THERE ARE VARIOUS LIMITATIONS ON EXTRACTING THE RELATED ORGANIZATION INFORMATION FROM LAWSON. DUE TO THESE LIMITATIONS, MOST OF THE RELATED ORGANIZATION ACTIVITY FOR THE FILING ORGANIZATION HAS BEEN CLASSIFIED ON SCHEDULE R, PART V, IN LINES P AND Q AND THE INFORMATION INCLUDES RELATED PARTY TRANSACTIONS FOR ALL OF MERCY, RATHER THAN ONLY THE FILING ENTITY.