2015-08-12T16:03:51-05:00 2014-06-30 861065772 Deloitte Tax LLP 250 East Fifth Street Suite 1900 Cincinnati OH 45202 990 2013-07-01 730579286 St John Medical Center Inc STJO 9187442180 1923 South Utica Avenue Tulsa OK 741046502 Lex Anderson SVP/CFO SJHS 9187442180 2015-08-12 1 Alicia Janisch P00741382 5137847100 2013 2016-02-25 16:41:14Z Jeff Nowlin 1923 South Utica Avenue Tulsa OK 741046502 546274896 0 0928 X www.sjmc.org X 1953 OK To provide medical excellence and compassionate care to all who need it. 8 7 3752 647 0 0 6949244 11784612 391139696 514353959 20614831 14630657 3452318 3811732 422156089 544580960 1727189 6078958 0 0 169256479 224553945 0 0 0 180422182 247105605 351405850 477738508 70750239 66842452 373955221 358264552 289506878 283987705 84448343 74276847 X Continue the healing ministry of Jesus Christ by providing medical excellence and compassionate care to all who need it with a special emphasis for the poor and powerless. 0 0 424219604 6078958 509466863 St. John Medical Center, Inc. (the "Medical Center"), located in Tulsa, Oklahoma, is a full-service tertiary hospital which provides a broad range of inpatient and outpatient health care services.St. John Health System, Inc. ("St. John"), and affiliates, own and operate a comprehensive tertiary health care delivery system which provides a full spectrum of health-related services throughout Northeastern Oklahoma. St. John, headquartered in Tulsa, Oklahoma, is a wholly-owned subsidiary of Ascension Health. St. John conducts its operations through several wholly-owned or wholly-controlled subsidiaries, including: St. John Medical Center, Inc. 424219604 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 X 258 0 1 3752 1 0 0 0 0 0 0 0 0 0 0 X 8 7 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 X Lex Anderson 9187442740 1923 South Utica Avenue Tulsa OK 71404 X Milann Siegfried Chairperson 0.60 3.70 X X 0 0 0 Lee Ellsworth Vice Chairperson 0.70 0.00 X X 0 0 0 Robert Farris Treasurer 2.30 0.00 X X 0 0 0 Joseph P Moran III Director 0.50 0.50 X 0 0 0 Sr M Felicidad Chavez Director 40.00 0.00 X 0 0 0 Sr M Anastasia Joseph Director 10.00 0.00 X 0 0 300 Kenneth Setter MD Director 3.00 0.00 X 0 0 0 Charles Anderson VP OP/Ex-Officio 42.90 0.90 X X 543250 0 42282 Bert W Walthall VP & CFO 40.00 0.00 X 296218 0 42055 Pamela Kiser VP & CNO 46.20 0.00 X 254732 0 25768 Kathleen C Smarinsky Vice President 40.40 0.00 X 257985 0 47768 Lex Anderson Treasurer/Sr. VP & CFO SJHS 0.20 46.00 X 0 630463 12798 H William Allred VP of Med Affairs/Med. Ed. 46.20 0.00 X 541433 0 13506 Jeffrey D Nowlin President & CEO 46.20 0.00 X 484080 0 60835 Kevin Steck Corp. Resp. Off./Secretary 0.20 54.80 X 0 303108 46620 David Lewis Transplant Admin. 40.00 0.00 X 168624 0 31612 Oliver D Hanson Chief Med. Physicist 40.00 0.00 X 186040 0 13647 Tseggy Kharkhuu Physicist II 40.00 0.00 X 181156 0 8354 Philip A Preston Dir. Operations Improv. 40.00 0.00 X 189256 0 4196 Patricia A Wright Evans RN Dir. Operating Room 40.00 0.00 X 169618 0 9093 Jessie Dragoo Former Vice President - Nursing 0.00 0.00 X 130622 0 16925 3403014 933571 375759 86 1 1 0 Parallon Workforce Mgmt Solutions LLC PO Box 742697 Atlanta GA 303742697 Clinical Staffing 6797094 In His Image Inc PO Box 1191 Tulsa OK 74101 Educational Seminars 5304895 University of Oklahoma 4502 E 41st St Tulsa OK 74135 Resident Education 2787774 Siemens Healthcare Diagnostics PO Box 121102 Dallas TX 753121102 Diagnostic Products (Sch. O) 2752705 Manhattan Construction Company 5601 S 122nd East Ave Tulsa OK 74146 Construction (Sch. O) 2486434 81 3640083 22400 8122129 11784612 Net Patient Revenue 621990 506315932 506315932 Fitness/Wellness/Edu. 900099 3365246 3365246 Trauma Care Assistance 612990 3150931 3150931 Prescription Sales 410001 787244 787244 Medical Records 621990 205415 205415 529191 529191 514353959 721638 721638 589366 0 589366 589366 589366 15602955 1400533 293403 -1400533 15309552 13909019 13909019 Food Service 721000 3114748 3114748 Miscellaneous Income 900099 107618 107618 3222366 544580960 509466863 0 23329485 X 6037691 6037691 41267 41267 2647306 2286614 360692 186805035 151113519 35691516 5327531 5284655 42876 19194773 18855727 339046 10579300 10327641 251659 147766 147766 563140 563140 77501 77501 19696 19696 63696361 62802354 894007 370940 365880 5060 2829900 1108276 1721624 6048057 5970268 77789 404706 377765 26941 11908431 11908431 17612790 8635003 8977787 2836922 2836922 Supplies 121768598 120221907 1546691 0 Oklahoma's SHOPP Fee 11743949 11743949 0 0 Equipment Rental-Lease 2692085 2692085 0 0 Repairs and Maintenance 1413377 1413377 0 0 2971386 3033195 -61809 477738508 424219604 53518904 0 7583122 12879580 72301337 71381933 11862348 12843636 562863 234634 223188315 21043932 194834037 202144383 76083159 16131288 1152043 1663248 9576312 40985850 373955221 358264552 48258175 36035231 241248703 247952474 289506878 283987705 X 33252652 72692518 51195691 1584329 0 84448343 74276847 373955221 358264552 X 66842452 -77013948 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 19696 19696 0 Part II-B, Line 1: Lobbying expenses represent the portion of dues paid to national and state hospital associations that is specifically allocable to lobbying. St. John Medical Center, Inc. does not participate in or intervene in (including the publishing or distributing of statements) any political campaign on behalf of (or in opposition to) any candidate for public office. 10000000 10000000 10000000 10000000 10012212 136854 149066 10000000 10261160 106052 355000 10012212 10610000 201160 550000 10261160 0.00000 1.00000 0.00000 0 1 1 10082018 10082018 158779939 9272279 149507660 138383 10823 127560 52000247 11674195 40326052 2187728 86635 2101093 202144383 A/P Intraco (within HM & within SO) 30150590 Other Assets 10835260 40985850 Intercompany Payable 241248703 Misc. Liabilities 632734 Estimated Settlement to Third Party Payor 6071037 247952474 X Part V, Line 4: The "Chapman Fund for Uncompensated Care" endowment was created to underwrite medical services for the uninsured and underinsured residents of the Tulsa Metropolitan Area. Funds are held and administered by St. John Health System Foundation, Inc. on behalf of St. John Medical Center, Inc. Part X, Line 2: From the consolidated audited financial statements of St. John Health System, Inc., which includes the activity of St. John Medical Center, Inc.: The Health Ministry accounts for uncertainty in income tax positions by applying a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. 1 1 X 1 X 300.000000000000 1 X 1 1 1 0 1 1 21340616 3150931 18189685 0.03810 46002695 43099040 2903655 0.00610 67343311 46249971 21093340 0.04420 3998310 3998310 0.00840 16519457 2454500 14064957 0.02940 20517767 2454500 18063267 0.03780 87861078 48704471 39156607 0.08200 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0 8331672 0 191280938 213646266 -22365328 X 1 1 3 1 St John Medical Center Inc 1923 South Utica Avenue Tulsa OK 74104 www.stjohnhealthsystem.com 2265 X X X X A 2 St John Dialysis LLC 1923 South Utica Avenue Tulsa OK 74104 www.stjohnhealthsystem.com 2265 X X SJMC Outpatient Department A 3 St John Home Care LLC 1923 South Utica Avenue Tulsa OK 74104 www.stjohnhealthsystem.com 2265 X X SJMC Home Health A Facility Reporting Group - A 1 X X X X X X X X X 12 1 1 1 X See Narrative X X X X X X X X 1 0 1 1 300.000000000000 1 300.000000000000 1 X X X X X X 1 1 X X 1 0 X X X X 1 X 0 0 Part V, Section B Facility Reporting Group A Facility Reporting Group A consists of: - Facility 1: St. John Medical Center, Inc., - Facility 2: St. John Dialysis, LLC, - Facility 3: St. John Home Care, LLC Facility 1 -- St. John Medical Center, Inc. Part V, Section B, line 3: The Tulsa County Health Departmet led the completion of the Community Health Needs Assessment. The determination of priority needs was based on research findings, and priorities were developed in collaboration with many other stakeholders, including other hospitals, community service agencies, state and local leaders, interested philantropists, universities and associated medical schools, and other parties, including public health experts and representatives of the communities served. In addition, the Tulsa County Health Department's research included randomly selected households for one on one interviews and some "county resident" focus groups. St. John sits on a Pathways to Health Steering Committee and Working Group to coordinate and direct community health activities in the service area. Facility 1 -- St. John Medical Center, Inc. Part V, Section B, line 4: The other hospital facilities with which the reporting Hospital facility conducted its CHNA, include: St. John Broken Arrow, Inc.Owasso Medical Facility, Inc.St. John Sapulpa, Inc.Jane Phillips Memorial Medical Center (Bartlesville)Jane Phillips Nowata Hospital, Inc. Facility 1 -- St. John Medical Center, Inc. Part V, Section B, line 7: The Hospital facility's Implementation Strategy is listed on the following website:http://www.stjohnhealthsystem.com/about/community-needs-health-assessment Facility 1 -- St. John Medical Center, Inc. Part V, Section B, line 14g: Signs are posted in waiting rooms and at the admissions offices to notify patients that the Hospital has a Financial Assistance Policy. In addition, every billing statement, the Hospital's website, and admission packets include information regarding the Financial Assistance Policy. The Policy is provided at the request of the patient. Facility 1 -- St. John Medical Center, Inc. Part V, Section B, line 20d: St. John Medical Center, Inc. provides a 30% discount on gross charges and a 15% prompt pay discount to all uninsured patients. Patients who are determined to be eligible for financial assistance receive an additional charity care discount equal to 100% of the remaining amount due. Facility 2 -- St. John Dialysis, LLC Part V, Section B, line 3: The Tulsa County Health Departmet led the completion of the Community Health Needs Assessment. The determination of priority needs was based on research findings, and priorities were developed in collaboration with many other stakeholders, including other hospitals, community service agencies, state and local leaders, interested philantropists, universities and associated medical schools, and other parties, including public health experts and representatives of the communities served. In addition, the Tulsa County Health Department's research included randomly selected households for one on one interviews and some "county resident" focus groups. St. John sits on a Pathways to Health Steering Committee and Working Group to coordinate and direct community health activities in the service area. Facility 2 -- St. John Dialysis, LLC Part V, Section B, line 4: The other hospital facilities with which the reporting Hospital facility conducted its CHNA, include: St. John Broken Arrow, Inc.Owasso Medical Facility, Inc.St. John Sapulpa, Inc.Jane Phillips Memorial Medical Center (Bartlesville)Jane Phillips Nowata Hospital, Inc. Facility 2 -- St. John Dialysis, LLC Part V, Section B, line 7: The Hospital facility's Implementation Strategy is listed on the following website:http://www.stjohnhealthsystem.com/about/community-needs-health-assessment Facility 2 -- St. John Dialysis, LLC Part V, Section B, line 14g: Signs are posted in waiting rooms and at the admissions offices to notify patients that the Hospital has a Financial Assistance Policy. In addition, every billing statement, the Hospital's website, and admission packets include information regarding the Financial Assistance Policy. The Policy is provided at the request of the patient. Facility 2 -- St. John Dialysis, LLC Part V, Section B, line 20d: St. John Medical Center, Inc. provides a 30% discount on gross charges and a 15% prompt pay discount to all uninsured patients. Patients who are determined to be eligible for financial assistance receive an additional charity care discount equal to 100% of the remaining amount due. Facility 3 -- St. John Home Care, LLC Part V, Section B, line 3: The Tulsa County Health Departmet led the completion of the Community Health Needs Assessment. The determination of priority needs was based on research findings, and priorities were developed in collaboration with many other stakeholders, including other hospitals, community service agencies, state and local leaders, interested philantropists, universities and associated medical schools, and other parties, including public health experts and representatives of the communities served. In addition, the Tulsa County Health Department's research included randomly selected households for one on one interviews and some "county resident" focus groups. St. John sits on a Pathways to Health Steering Committee and Working Group to coordinate and direct community health activities in the service area. Facility 3 -- St. John Home Care, LLC Part V, Section B, line 4: The other hospital facilities with which the reporting Hospital facility conducted its CHNA, include: St. John Broken Arrow, Inc.Owasso Medical Facility, Inc.St. John Sapulpa, Inc.Jane Phillips Memorial Medical Center (Bartlesville)Jane Phillips Nowata Hospital, Inc. Facility 3 -- St. John Home Care, LLC Part V, Section B, line 7: The Hospital facility's Implementation Strategy is listed on the following website:http://www.stjohnhealthsystem.com/about/community-needs-health-assessment Facility 3 -- St. John Home Care, LLC Part V, Section B, line 14g: Signs are posted in waiting rooms and at the admissions offices to notify patients that the Hospital has a Financial Assistance Policy. In addition, every billing statement, the Hospital's website, and admission packets include information regarding the Financial Assistance Policy. The Policy is provided at the request of the patient. Facility 3 -- St. John Home Care, LLC Part V, Section B, line 20d: St. John Medical Center, Inc. provides a 30% discount on gross charges and a 15% prompt pay discount to all uninsured patients. Patients who are determined to be eligible for financial assistance receive an additional charity care discount equal to 100% of the remaining amount due. Schedule H, Section B, Line 5a: The Hospital facility's CHNA is listed on the following website:http://www.stjohnhealthsystem.com/about/community-needs-health-assessment Part I, Line 6a: The Hospitals are wholly-owned (wholly-sponsored) subsidiary of St. John Health System, Inc. - EIN 73-1215174 - ("SJHS"). SJHS prepared a consolidated community benefit report for the consolidated organization for this tax year. The report is made available on demand and is referenced by the Organization in a number of public meetings and community outreach activities. Part I, Line 7: Costs were determined using a cost to charge ratio derived from Worksheet 2, Patient Care Cost to Charges. Part III, Line 2: Accounts are written off to bad debt after all internal collection efforts have been exhausted. Attempts to resolve these outstanding balances can include, but are not limited to statements being sent, phone calls and letters being sent. Account follow up protocol is based on personal pay balance size owed. Part III, Line 3: St. John Medical Center, Inc. has a very robust financial assistance program; therefore, no estimate is made for bad debt attributed to financial assistance eligible patients. Part III, Line 4: From the consolidated audited financial statements of St. John Health System, Inc., which includes the activity of St. John Medical Center, Inc.:The provision for doubtful accounts is based upon management's assessment of expected net collections considering economic conditions, historical experience, trends in health care coverage, and other collection indicators. Periodically throughout the year, management assesses the adequacy of the allowance for doubtful accounts based upon historical write-off experience by payor category, including those amounts not covered by insurance. The results of this review are then used to make any modifications to the provision for doubtful accounts to establish an appropriate allowance for doubtful accounts. After satisfaction of amounts due from insurance and reasonable efforts to collect from the patient have been exhausted, the Health Ministry follows established guidelines for placing certain past-due patient balances with collection agencies, subject to the terms or certain restrictions on collection efforts as determined by Ascension Health. Accounts receivable are written off after collection efforts have been followed in accordance with the Health Ministry's policies.The methodology for determining the allowance for doubtful accounts and related write-offs on uninsured patient accounts has remained consistent with the prior year. The Health Ministry has not experienced material changes in write-off trends and has not materially changed its charity care policy in the current fiscal year. Part III, Line 8: St. John Medical Center, Inc. follows the Catholic Health Association ("CHA") guidelines for determining community benefit. CHA community benefit reporting guidelines suggest that Medicare shortfall is not treated as community benefit. Part III, Line 9b: The Organization has a written debt collection policy that also includes a provision on the collection practices to be followed for patients who are known to qualify for charity care or financial assistance. If a patient qualifies for charity or financial assistance, certain collection practices do not apply. Part VI, Line 2: The Hospitals conducted a Community Health Needs Assessment jointly with its parent entity - SJHS. SJHS participates in ongoing community-based needs assessments. Some of the most significant recent activity includes commissioning of a Community Health Needs Assessment and plan for improving community health care conducted by the Tulsa County Health Department and released in 2013. The 2013 assessment has been posted to the Hospitals and Health System websites: www.sjmc.org. Many major community health care service organizations participated in these studies. In addition to the above, SJHS through its subsidiary, St. John Medical Center, Inc., has established a Medical Access Program ("MAP") that is attempting to improve and expand access to health care services to the most vulnerable members of the Tulsa community. All SJHS Tulsa Hospitals including St. John Sapulpa, Inc., St. John Broken Arrow, Inc., Owasso Medical Facility, Inc., and St. John Medical Center, Inc. participate in this initiative. This program is overseen by representatives of St. John, the George Kaiser Family Foundation, trustees of the Chapman trusts and The University of Oklahoma Tulsa School of Community Medicine. The MAP program includes participation of other health care providers including Good Samaritan Clinics, Day Center for the Homeless, Community Health Connections FQHC, Morton Health FQHC, and a network of volunteer physician providers and other organizations. The MAP program regularly receives input from all these organizations on needed services in the community which helps to prioritize the limited resources available to address community needs. Part VI, Line 3: The Hospitals have a team of financial counselors who, prior to discharge, attempt to visit in person with all uninsured inpatients and all inpatients likely to qualify for medical indigency to explain our financial assistance policies and help guide them through the process of applying for financial assistance. We also attempt to meet with all the families of all Medicaid beneficiaries or individuals who we believe could potentially qualify for Medicaid to help them apply for coverage. The Hospitals mention the existence of the Financial Assistance Policy and provides a phone number to call: on its website, in admitting materials, on all invoices for services sent to patients, and in other ways. Part VI, Line 4: As described above, the Hospitals are part of St. John Health System, Inc. ("SJHS"). Although SJHS provides a full spectrum of health related services throughout Northeastern Oklahoma, its tertiary operations and a large part of its other services are concentrated in the Tulsa Metropolitan Statistical Area (the "Tulsa MSA"). According to the 2010 Census, the State of Oklahoma had a resident population of 3,751,351 persons compared to 3,450,654 persons in 2000. This is an 8.7% increase. The U.S. Census Bureau estimated that in 2009 13.5% of the Oklahoma resident population was eligible for Medicare, compared to 14.7% in 2000.Tulsa County, Oklahoma and the counties that make up the Tulsa MSA, according to the 2010 Census, had populations of 603,403 and 1,008,460, respectively. This compares to populations of 563,299 and 803,235 persons, respectively in 2000 and represents population growth of 7.1% and 25.5%, respectively. The data shows that the counties in the Tulsa MSA that surround Tulsa County grew much faster from 2000 to 2010. At the same time, the population within Tulsa County shifted away from the city of Tulsa and to suburbs such as Owasso and Broken Arrow. The cities of Broken Arrow and Owasso were two of the fastest growing communities in Oklahoma between 2000 and 2010. The population of the city of Owasso grew 56% to 28,915 from 2000 to 2010 and the population of the city of Broken Arrow grew 32% to 98,850 from 2000 to 2010. Wagoner County (southeast of Tulsa) and Rogers County (northeast of Tulsa) showed the two highest population growth rates from 2000 to 2010. Every county in the 8 county Tulsa MSA except Pawnee County grew in population from 2000 to 2010. Washington County, directly north of Tulsa County and which includes the city of Bartlesville (and Jane Phillips Memorial Medical Center), also grew in population from 2000 to 2010. When the population of Washington County is added to the population of Tulsa County, the 2010 combined population was 1,059,436.There is significant disparity in the general health of populations within the service area depending upon where an individual lives and to what socioeconomic and ethnic group they belong. Citizens who reside in "North" Tulsa and in some areas of "East" and "West" Tulsa generally have poorer health and shorter life spans than individuals who live in "South" Tulsa. Members of minority groups (many of whom reside in the geographic areas described above) share these same health characteristics. It has been demonstrated that these individuals have less access to regular health care services, including specialty care and many seek even their primary care in hospital emergency rooms, including all of the SJHS Hospitals. Some significant minority groups in the Hospitals' and SJHS's principal service area include Native Americans, Hispanics and African Americans. Each of these groups shares common socioeconomic challenges making them more likely to be poor and be uninsured for health care. Each of these groups has unique ethnic health risk factors that contribute to health status that is generally poorer than their White counterparts. However, even among the White population in the Hospital's service area, there is significant adverse health care status. Oklahoma (including the Hospitals' service area) ranks near the bottom in many if not most measures of health status in the U.S. There are high rates of smoking, diabetes, obesity, upper respiratory illness, chronic heart conditions and many other factors. There are high rates of uninsured and underinsured individuals and families in the communities and geographies served by the Hospital which create many challenges in meeting the demand for basic services and in improving the health status of the population. Part VI, Line 5: St. John is a growing integrated delivery system that serves Northeastern Oklahoma and the surrounding area. It has grown significantly in recent years, with increasing revenues from outpatient and physician professional services as well as other post-acute services. Acute care services are provided on six hospital campuses that are owned by St. John. The owned hospitals are St. John Medical Center, Inc. (the tertiary center in Tulsa, Oklahoma), Jane Phillips Memorial Medical Center in Bartlesville, St. John Owasso in Owasso, Oklahoma, St. John Broken Arrow, Inc., St. John Nowata Hospital, Inc., a critical access hospital in Nowata, Oklahoma, and St. John Sapulpa, Inc., a critical access hospital in Sapulpa, Oklahoma. Acute care services are also provided at two additional rural critical access hospitals which are owned or managed by Jane Phillips. Diagnostic services and certain acute care services are also provided in a variety of free standing (including hospital-based) settings. The St. John System now includes more than 450 employed physicians and "mid-level providers", and several urgent care clinics, as well as retirement and skilled nursing facilities including some targeted specifically to serve low-income and physically disabled individuals) and other health care providers. St. John is attempting to promote community health in several ways. Most of the affiliated primary care physicians have or are establishing "medical home" models of care that are attempting to improve health status of their patients by better emphasizing preventive care and health screening and by better management of chronic disease. This includes participation in the Medicare Comprehensive Primary Care Initiative. The affiliated primary care physicians utilize a sophisticated electronic medical record that helps provide real time information to make it easier to manage patients' care. The Hospitals and the other hospitals in the system have invested heavily in clinical information systems and electronic medical records to better manage patient care during each episode of acute care. St. John is investing in new systems of care to provide better coordination of care between all the different providers responsible for portions of each patient's care with an emphasis on prevention, screening and coordination of chronic care. The Hospitals and SJHS have invested in tertiary services that are needed by the community. Examples of which include development of Oklahoma's only ACS Level II Trauma Center (the highest accredited center in Tulsa), Northeastern Oklahoma's only JCAHO-accredited stroke center, neonatal intensive care, sophisticated medical technology including all-digital diagnostic radiology, cyberknife and other forms of radiation therapy, DaVinci robotic surgery, an endovascular operating suite, orthopedic and neurosurgical centers of excellence, sophisticated cardiovascular care that emphasizes rapid and effective intervention for heart attack victims and preventive care for those with chronic heart conditions.The Hospitals have an open medical staff and has community, religious and physician representatives serving on its board. SJHS has created and is continuing to create systems and policies to promote better coordination of care and allocation of resources throughout the System. The Hospitals participate in many community-wide health screening and health education events as well as hosting many such events that are open to the public. The Hospital and SJHS continue to invest in medical education to support the expansion of physicians, nurses and allied health professionals that will serve the current and future generations of patients in the service area. The Hospitals participate in SJHS's coordinated effort to assess community need collaboratively with other interested parties in the community and to allocate capital and human resources to address the needs of the entire service area.Finally as one of only two major tax-exempt health systems in our service area, St. John reinvests 100% of any profits generated into new or expanded services for the community. Part VI, Line 6: St. John Health System, Inc. ("St. John" or "the Health Ministry") is a member of Ascension Health. St. John became a member of Ascension Health on April 1, 2013. In December 2011, Ascension Health Alliance, doing business as Ascension, became the sole corporate member and parent organization of Ascension Health, a Catholic, national health system consisting primarily of nonprofit corporations that own and operate local health care facilities, or Health Ministries, located in 23 of the United States and the District of Columbia. In addition to serving as the sole corporate member of Ascension Health, Ascension serves as the member or shareholder of various other subsidiaries. Ascension, its subsidiaries, and the Health Ministries are referred to collectively from time to time hereafter as the System.Ascension is sponsored by Ascension Sponsor, a Public Juridic Person. The participating entities of Ascension Sponsor are the Daughters of Charity of St. Vincent de Paul, St. Louise Province, the Congregation of St. Joseph, the Congregation of the Sisters of St. Joseph of Carondelet, the Congregation of Alexian Brothers of the Immaculate Conception Province - American Province and the Sisters of the Sorrowful Mother of the Third Order of St. Francis of Assisi - US/Caribbean Province.Until April 1, 2013, St. John Health System, Inc. was a wholly owned subsidiary of Marian Health System, Inc. ("Marian"). Effective April 1, 2013, Marian transferred its ownership of St. John to Ascension whereby St. John Health System, Inc. became a subsidiary of Ascension Health. The transaction was a membership substitution transaction, such that Ascension Health became the sole member of St. John, holding essentially the same reserved powers over St. John as Marian previously held. The transfer of ownership has been accounted for as a purchase. As such, on April 1, 2013, the assets and liabilities of St. John were adjusted to estimated fair market value. Also as a result of this transaction, St. John adopted a June 30 fiscal year for financial reporting purposes from its previous September 30 fiscal year. Due to the adjustment of asset and liability values to fair market value on April 1, 2013, the accompanying consolidated financial statements as of and for the year ended June 30, 2014, are not presented with comparative prior year information.St. John, headquartered in Tulsa, Oklahoma, and with facilities located throughout Northeastern Oklahoma is an Oklahoma nonprofit health system. It owns and operates an integrated tertiary health care delivery system that provides services primarily in Northeastern Oklahoma. St John Health System, Inc. and its subsidiaries, affiliates, and employed and affiliated physicians, provide health care services for patients of all ages across a broad continuum of care, from physician primary care and specialty services to ambulatory and inpatient acute and post-acute services, and including senior nursing and senior living services. The Health Ministry is related to Ascension Health's other sponsored organizations through common control. Substantially all expenses of the Health Ministry are related to providing health care services.The accompanying consolidated financial statements includes the accounts of St. John Health System, Inc. and its subsidiaries. Principal subsidiaries as of June 30, 2014, include the following:- St. John Medical Center, Inc.- Jane Phillips Memorial Medical Center- Owasso Medical Facility, Inc.- St. John Broken Arrow, Inc.- St. John Health System Foundation, Inc.- St. John Villas, Inc. - St. John Sapulpa, Inc.- Jane Phillips Nowata Hospital, Inc.- St. John Building Corporation- Utica Services, Inc. and subsidiaries- SJFI, LLCMission:The System directs its governance and management activities toward strong, vibrant, Catholic Health Ministries united in service and healing, and dedicates its resources to spiritually centered care which sustains and improves the health of the individuals and communities it serves. In accordance with the System's mission of service to those persons living in poverty and other vulnerable persons, each Health Ministry accepts patients regardless of their ability to pay. The System uses four categories to identify the resources utilized for the care of persons living in poverty and community benefit programs:- Traditional charity care includes the cost of services provided to persons who cannot afford healthcare because of inadequate resources and/or who are uninsured or underinsured.- Unpaid cost of public programs represents the unpaid cost of services provided to persons covered by public programs for the persons living in poverty and other vulnerable persons.- Cost of other programs for the persons living in poverty and other vulnerable persons includes programs intentionally designed to serve the persons living in poverty and other vulnerable persons of the community including substance abusers, the homeless, victims of child abuse and persons with acquired immune deficiency syndrome.- Community benefit consists of the unreimbursed costs of community benefit programs and services for the general community, not solely for persons living in poverty and other vulnerable persons, including health promotion and education, health clinics and screenings and medical research.Discounts are provided to all uninsured patients, including those with the means to pay. Discounts provided to those patients who did not qualify for assistance under charity care guidelines are not included in the cost of providing care of persons living in poverty and other community benefit programs. The cost of providing care to persons living in poverty and other community benefit programs is estimated by reducing charges forgone by a factor derived from the ratio of each entity's total operating expenses to the entity's billed charges for patient care.The amount of traditional charity care provided, determined on the basis of cost, was approximately $32,442,000 for the year ended June 30, 2014. Community Benefit Report: St. John Health System, Inc.'s (the "St. John System" or "St. John") mission is to improve the health status of the individuals who live in the communities we serve with a special emphasis on the poor and vulnerable among us; faithful to the teaching of Jesus Christ and the values of our Sponsors and the Catholic Church. Our promise to our patients and to our communities is to provide medical excellence and compassionate care. We strive to provide healthcare that works, healthcare that is safe and healthcare that leaves no one behind.To meet this mission the St. John System has operated since the 1920's; growing from a fledgling community hospital in what was then the southern edge of Tulsa, Oklahoma to an integrated health care delivery system serving Northeastern Oklahoma and surrounding states. The St. John System includes: 7,000 associates, 450 employed physicians and advanced practice providers, hundreds more independent physicians and dozens of volunteers. They serve patients in six owned hospitals operating nearly 800 beds; several senior nursing and housing facilities; dozens of physician offices, clinics and urgent care centers; a reference laboratory, and partnerships and ventures that include a health insurance company, several ambulatory surgery centers and other health care activities. Together, our associates, physicians and volunteers touch the lives of thousands of patients every day; including the poor and the vulnerable.In each of the last four fiscal years, the St. John System provided total estimated community benefit (utilizing the measurement criteria of the U.S. Catholic Health Association) of more than $81.1 million. These amounts represented more than 8% of total operating expenses in each year. The St. John System is committed to continue the legacy of health care excellence and service started by our original founders and sponsors the Sisters of the Sorrowful Mother by continuing to provide vital services to the communities with continued emphasis on service to the poor and powerless.Our Mission and Values: Our mission of service and our Catholic values compel us to fulfill our promise of medical excellence and compassionate care to all who need our services with a special emphasis on service to the poor and the powerless. We will do this by providing: health care that works; health care that is safe; and health care that leaves no one behind. We will endeavor to establish trusted relationships with our patients over their entire lives: seeking to improve their health and working to health their minds and bodies when afflicted by injury or illness.Health Care that Works:Our vision calls us to ensure service that is committed to health and well-being for our communities and that responds to the needs of individuals throughout their lives. Healthcare that Works includes establishing a trusted relationship between each patient and their health care professionals so that they receive the care they need, including preventative care, when they need it and in a manner that meets their service expectations. We expect our patients to be actively involved in their own health care participating in informed decisions that will strive to make them healthier. Health care that works assumes that the care provided is person-centered and based on the best available medical evidence, reliably delivered. Becoming truly person-centered requires shifts in focus from traditional models of health care to build an effective and trusted relationship with each patient over their lifetime across the continuum of care emphasizing prevention and wellness, disease management, and a medical home that promotes a spiritually-centered, holistic approach to supporting a person's health and well-being. Health care that works strives to make sure the value of the care received is exceptional but at an acceptable economic cost both to the individual and to society.Health Care that is Safe:St. John is striving to become a "high reliability" organization. High reliability means that we will be exceptionally consistent in accomplishing goals and avoiding catastrophic errors in everything we do. In providing health care services, this means reducing medical errors by providing our clinicians and our patients with decision support tools to ensure the care provided is consistently based on sound scientific evidence of effectiveness. Physicians and nurses are leading our quality efforts. Among our clinical areas of focus for improvement are goals to reduce hospital acquired conditions and hospital readmissions. Some specific areas of clinical focus include reducing: - Adverse Drug Events (ADE),- Catheter Urinary Tract Infections (CAUTI),- Central Line Blood Stream Infections (CLABSI),- Surgical Site Infections (SSI),- Ventilator Associated Pneumonia (VAP),- Injuries from Falls and Immobility,- Obstetrical Adverse Events,- Pressure Ulcers, and- Venous Thromboembolism (VTE).Healthcare that Leaves No One Behind:We will continue to advocate for state and federal public policy that recognizes the inherent value of all members of society and provides support systems and adequate funding sources to ensure all of those among us have access to the health care they need. This includes providing affordable access to health care for everyone in the U.S. in a financially sustainable way.Our Enabling Strengths:We will use our enabling strengths to achieve our mission and vision. Those strengths include: a model community of inspired people working to provide our services and achieve our mission; empowering knowledge clinical and business information systems that provide our associates actionable, timely data and information upon which they can make informed decisions; the creation of trusted partnerships with external partners to expand our capabilities, complement our service offerings and fulfill our mission; and achieving vital presence in the communities we serve. This vital presence contemplates creation and continuation of important safety net services, world-class centers of clinical excellence and creation of medical homes that promote each individual's participation in their own health and well-being and which create and sustain the infrastructure for promoting health communities.Our Point of View:Health care delivery and financing in the U.S. must change. The cost of the current system relative to the value that communities and individuals are receiving is not sustainable. In order to meet the health care needs and contribute to economic vitality of communities, with special attention to the poor and vulnerable, health care providers must fundamentally reconfigure delivery systems, care processes and cost structures. Delivering safe, high-quality care that is low cost with an exceptional patient experience will increasingly require providers to have a strong regional presence, integrated physician relationships and capabilities across the care continuum. Sustaining the St. John mission into the future will require a more continuous, dynamic relationship with those we serve and the ability to share risk with healthcare purchasers, as opportunities for inpatient growth or commercial rate increases will be limited. The movement to managing health of defined populations demands massive transformational change. This requires rapid assessment, assembly and deployment of the necessary capabilities. We believe the St. John System is well positioned to lead this transformation.Community Needs Assessment:The St. John System and each St. John Hospital have completed a Community Health Needs Assessment to help us identify the priorities for the limited resources we have to address community need. We partnered with the Tulsa County Health Department, other public and private health care, educational and community service organizations throughout the service area to complete the assessments and we are now working to enhance our response to the identified needs. Additional information will be forthcoming about our specific future responses to our assessment of community need.Community Benefit:The community benefit provided by the St. John System includes: uncompensated care for the poor, support for the education of medical professionals, provision of subsidized health services, support for other community organizations, initiatives to improve community health, and medical research to be some of the key areas of focus for providing community benefit. The St. John System does not include amounts recorded as bad debt; shortfalls in the difference between payment for and cost of service to Medicare beneficiaries; payment of property, sales, use, income, payroll, and other taxes; considerable economic value provided to the local communities in which we operate as components of community benefit.Care for the Poor:"Care for the Poor" (which includes the estimated cost of services provided to patients who qualify for financial assistance (charity) and the uncompensated co 1 Good Samaritan Health Service Inc 7600 S Lewis Tulsa OK 741366836 731559561 501(c)(3) 645750 Medical Assistance OMNI Medical Group Inc PO Box 21228 Dept 333 Tulsa OK 74121 731335536 N/A 567456 Medical Assistance Regional Medical Laboratories Inc 4142 S Mingo Road Tulsa OK 741463632 731131608 N/A 30947 Medical Assistance St Gregory's University 5801 E 41st St Suite 900 Tulsa OK 741355631 730685198 Gov't Entity 50000 Nursing Program St John Anesthesia Services Inc PO Box 2128 Dept 151 Tulsa OK 741211228 203690446 N/A 20432 Medical Assistance St John Broken Arrow Inc 1000 W Boise Cr Broken Arrow OK 740124900 383833117 501(c)(3) 12727 Medical Assistance Owasso Medical Facility Inc 12451 E 100th St No Owasso OK 740554600 203700131 501(c)(3) 12562 Medical Assistance St John Physicians Inc PO Box 21228 Dept 334 Tulsa OK 74121 731321032 N/A 108578 Medical Assistance Surgery Inc 1725 E 19th St 800 Tulsa OK 741046520 730768966 N/A 55945 Medical Assistance Tulsa Day Center for the Homeless 415 W Archer St Tulsa OK 741031807 730662663 501(c)(3) 271950 Medical Assistance Tulsa Radiology Associates PO Box 4939 Tulsa OK 741590939 736017987 N/A 44904 Medical Assistance University of Oklahoma 4502 E 41st St Tulsa OK 741352512 736017987 501(c)(3) 4177790 Resident Program Urologic Specialists of Oklahoma Inc 10901 E 48th St Tulsa OK 741465830 730729369 N/A 31725 Medical Assistance 6 7 Medical Assistance 1 41267 Part I, Line 2: Grants to organizations - St. John Medical Center, Inc. ("SJMC") provides funds to selected unaffiliated entities to fund their operations. SJMC determines the amount of the funds provided on an annual basis. 1 1 0 0 0 0 0 1 0 Charles Anderson VP OP/Ex-Officio 460609 0 34282 0 48359 0 23000 0 19282 0 585532 0 31269 0 Bert W Walthall VP & CFO 239762 0 26767 0 29689 0 21216 0 20839 0 338273 0 20748 0 Pamela Kiser VP & CNO 206203 0 23021 0 25508 0 17500 0 8268 0 280500 0 13964 0 Kathleen C Smarinsky Vice President 206628 0 23068 0 28289 0 40000 0 7768 0 305753 0 20241 0 Lex Anderson Treasurer/Sr. VP & CFO SJHS 0 490729 0 73048 0 66686 0 0 0 12798 0 643261 0 39712 H William Allred VP of Med Affairs/Med. Ed. 469708 0 29791 0 41934 0 0 0 13506 0 554939 0 27000 0 Jeffrey D Nowlin President & CEO 424368 0 47377 0 12335 0 35000 0 25835 0 544915 0 0 0 Kevin Steck Corp. Resp. Off./Secretary 0 231739 0 33913 0 37456 0 38731 0 7889 0 349728 0 24863 David Lewis Transplant Admin. 158947 0 9540 0 137 0 22500 0 9112 0 200236 0 0 0 Oliver D Hanson Chief Med. Physicist 185645 0 298 0 97 0 0 0 13647 0 199687 0 0 0 Tseggy Kharkhuu Physicist II 180759 0 295 0 102 0 0 0 8354 0 189510 0 0 0 Philip A Preston Dir. Operations Improv. 178197 0 10830 0 229 0 0 0 4196 0 193452 0 0 0 Patricia A Wright Evans RN Dir. Operating Room 161792 0 7458 0 368 0 0 0 9093 0 178711 0 0 0 Jessie Dragoo Former Vice President - Nursing 0 0 0 0 130622 0 12981 0 3944 0 147547 0 0 0 Part I, Line 3 St. John Health System, Inc., a related organization of St. John Medical Center, Inc., uses the following methods to establish the compensation of the Organization's President: -Compensation Committee -Independent Compensation Consultant -Compensation Survey or Study -Approval by the Board or Compensation Committee Part I, Line 4a: The following Former Officer received severance payments from the organization or a related organization during the calendar year 2013: Jessie Dragoo $97,174 Part I, Line 4b: Eligible executives participate in a program that provides for supplemental retirement benefits. The payment of benefits under the program, if any, is entirely dependent upon the facts and circumstances under which the executive terminates employment with the Organization. Benefits under the program are unfunded and non-vested. Due to the substantial risk of forfeiture provision, there is no guarantee that these executives will ever receive any benefit under the program. Any amount ultimately paid under the program to the executive is reported as compensation on Form 990, Schedule J, Part II, Column B in the year paid. The following individual received current year distributions of: Charles Anderson $31,269 Bert W. Walthall $20,748 Pamela Kiser $13,964 Kathleen C. Smarinsky $20,241 H. Wiliam Allred $27,000 Lex Anderson $39,712 Kevin Steck $24,863 Part I, Line 7: St. John Health System, Inc. is the controlling member organization of an integrated healthcare system ("System"). The System has established an executive accountability and financial incentive plan that encourages the executives' participation in the significant improvements of the quality, financial, growth, and human resource related operations of the Organization. Eligibility is triggered when the System meets certain earnings and community benefits targets; however payments received under the plan are not based on the earnings of the Organization. Executives receive points under a plan scoring system for meeting their predetermined goals. The points are then entered into the plan formula to determine the executives' incentive compensation. Maximum payments under the financial incentive plan are twenty percent of base pay for most executives and 25% of base pay for the System CEO. There is a small discretionary element to the plan, generally equal up to 6.0% of base pay (up to 30% of the total plan pay out). Form 990, Part III, Line 4a (the "Medical Center"), St. John Sapulpa, Inc. ("St. John Sapulpa"), Jane Phillips Memorial Medical Center ("Jane Phillips"), Utica Services, Inc. ("Utica"), St. John Villas, Inc. ("St. John Villas"), Owasso Medical Facility, Inc. ("St. John Owasso"), St. John Health System Foundation, Inc. ("St. John Foundation"), St. John Building Corporation ("SJBC"), and St. John Broken Arrow, Inc. ("St. John Broken Arrow"). St. John, these subsidiaries, and all other subsidiaries under St. John's direct or indirect control or ownership are referred to herein as "the St. John System". All hospitals and other facilities or organizations owned or managed by the St. John System are operated in accordance with the mission and values of St. John. Mission and Values: As a Catholic healthcare organization, St. John carries on the mission of its sponsors, through Ascension Health, of continuing the healing ministry of Jesus Christ. It aspires to provide health care that works, health care that is safe, and health care that leaves no one behind, with a promise to our patients and the communities we serve of providing medical excellence and compassionate care. It operates in conformance with "the ethical and religious directives for Catholic health facilities." Faithful to the sponsorship mission, philosophy and values, St. John's mission is to provide healthcare and related ministries for the people served, especially the sick, the poor and the powerless. The board of directors, management and employees of St. John are guided in their day-to-day actions and interactions with those who serve and who are served by the values of service to the poor, wisdom, reverence, creativity, dedication and integrity. St. John and the Medical Center collaborate with other individuals and institutions in the various communities it serves to ascertain community needs and provide a broad range of services along the healthcare continuum to help meet those needs. Programs and services include preventive, diagnostic, therapeutic and rehabilitative programs, including emphasis on health promotion and disease prevention. St. John also advocates for public policies which advance a healthy and just society. St. John works with local, state and national leaders and organizations to bring about a healthcare delivery system that provides dignified access to and affordable, high quality healthcare for all persons. Community Needs Assessment: Each owned hospital in the St. John System (including the Medical Center) has completed a Community Health Needs Assessment and plan of response and those have been posted to each Hospital's website and also the Health System website. St. John continues to look for ways to meet unmet community needs in a sustainable and collaborative way with other organizations to build healthier communities. Governance: The administrative powers of the Medical Center are vested in its board of directors, which controls and manages the properties, affairs and funds of the Medical Center, subject to reservation of certain powers by St. John. The board meets regularly and it works in concert with, and when appropriate, under the direction of the St. John Health System, Inc. board. Community Benefit: In measuring and reporting quantifiable community benefit, St. John follows guidelines promulgated by the Catholic Health Association of the United States and endorsed by other organizations. Uncompensated care and other elements of community benefit are measured at the unreimbursed estimated cost of services or resources provided. The St. John System serves as an important safety net provider of a broad continuum of health care services to the citizens of Northeastern Oklahoma and the surrounding region. Each of the six main hospitals operates a full-service, 24-hour, 365-day emergency room providing both urgent and emergency care to all individuals, regardless of their ability to pay. The Medical Center, located in Tulsa, Oklahoma, is a full-service tertiary hospital which provides a broad range of inpatient and outpatient health care services. The Medical Center is a tertiary referral center and serves as one of two primary trauma referral centers for Tulsa and Northeastern Oklahoma. It serves as a primary Tulsa teaching hospital for The University of Oklahoma's School of Community Medicine residency programs for internal medicine and surgery. It is also the primary teaching hospital for the In His Image Family Medicine residency program. It is also Northeastern Oklahoma's only "magnet" accredited hospital, signifying excellence in nursing care. St. John Medical Center, Inc. is Tulsa's and Northeastern Oklahoma's only ACS Level II Trauma Center and only Joint Commission-accredited comprehensive stroke center. The Medical Center offers advanced services in trauma, neurological and neurosurgical (including stroke) care, cardiology and cardiothoracic surgery, kidney transplant, adult, pediatric and neonatal intensive care, cancer treatment, joint replacement, and many other areas. Patients seen in the St. John System for the fiscal year ended June 30, 2014: Beds in Service (including 37 newborn bassinets) 782 Total Discharges (excluding normal newborns) 38,704 Total Observation Days 19,086 Combined Discharges and Observation Days 57,790 Total Patient Days (excl. normal newborn and observations) 176,450 Average Length of Stay in Days (excl. normal newborn and obs.) 4.56 Births 3,248 Emergency Room Visits 140,150 Outpatient Visits (excl. emergency room & one day surgeries) 394,526 Inpatient Surgical Cases 9,855 Outpatient Surgical Cases 15,545 Physician Office Patient Visits 617,023 Urgent Care Clinic Patient Visits 58,368 Combined Physician Office and Urgent Care Visits 675,391 Total Laboratory Procedures (incl. hospital and reference labs) 8,184,993 Patients seen in St. John Medical Center, Inc. for the fiscal year ended June 30, 2014: Beds in Service (including 20 newborn bassinets) 547 Total Discharges (excluding normal newborn) 28,728 Total Observation Days 12,382 Combined Discharges and Observation Days 41,110 Total Patient Days (excl. normal newborn and observation) 149,969 Average Length of Stay in Days (excl. normal newborn & obs.) 5.22 Births - 2,205 Emergency Room Visits 60,547 Outpatient Visits (excl. emergency room & one day surgeries) 250,795 Inpatient Surgical Cases 7,775 Outpatient Surgical Cases 10,815 In its fiscal year ended June 30, 2014, St. John was able to identify and quantify an initial estimate of more than $81.1 million of total net consolidated quantifiable community benefit provided to thousands of individuals directly served. This represents more than 8% of total St. John System operating expenses. In addition to the quantifiable community benefit described above, the St. John System charged millions of dollars to the consolidated provision for bad debts in 2014 which were not included in the total quantifiable community benefit for the year. Also, unlike many other non-profit health systems based in states other than Oklahoma, the St. John System is not exempt from state and local sales taxes and, in fact, pays sales tax on many equipment, supplies and other purchases. When payments from certain government programs for direct graduate medical education and Oklahoma Trauma Fund participation are applied to community benefit expense, the net consolidated quantifiable community benefit expense for St. John Health System, Inc. for 2014 was estimated to be at least $74.9 million. The St. John System considers care for the poor to be an essential part of its mission of service to the community. The total cost of care for the poor includes the cost of charity care, the unreimbursed cost of services to Medicaid beneficiaries (together referred to as "uncompensated care for the poor"), and the cost of special programs or other activities specifically targeted to increase access to care or provide other services to the poor. "Care for the Poor" includes the estimated cost of care classified as charity care plus the estimated excess of the cost of services provided to Medicaid beneficiaries over the payments received from Medicaid. "Care for the Poor" does not include the cost of services classified and written off as bad debts or the excess of the cost of services provided to Medicare beneficiaries over the payments received from Medicare. Charity and Uncompensated Care: The St. John System's Hospitals, senior-care and other facilities provide services without regard to a patient's ability to pay. In 2014, the St. John System Hospitals provided a discount of at least 30% of billed charges to all uninsured patients. Uninsured patients also could qualify for an additional 15% prompt pay discount. In addition to these automatic discounts, patients can apply for financial assistance up to and including free care. The determination of the patient's qualification for financial assistance is based on an objective determination of the patient's financial Form 990, Part V, Line 1a and 2a: Statements Regarding Other IRS Filings and Tax Compliance The number of independent contractors during the tax year for the filing organization and all other entities within the St. John Medical Center, Inc. master pay group are reflected in Part V, Line 1a of the filing organization. Compensation for independent contractors is reported on the Form 1096, Annual Summary and Transmittal of the U.S. Information Returns, of St. John Medical Center, Inc. (SJMC), EIN 73-0579286. Expenses from all entities in the SJMC master pay group are allocated to and reimbursed by the filing organization to SJMC and are reported on Form 990, Part VII, Section B and Part IX by the respective filing organization that incurred the expense. The salaries reflected on Form 990 were all reported on the Form 941 Employer's Quarterly Federal Tax Return of St. John Medical Center, Inc. These salaries were reimbursed to SJMC by the filing organization and were included in the number of employees on SJMC's calendar year 2013 Form W-3. The number of employees reported on Part V, Line 2a of Form 990 by the filing organization represents the number of employees providing services to the filing organization during calendar year 2013. Form 990, Part VI, Section A, line 2 Many of the persons listed on Part VII have a "business relationship" with each other by virtue of employment by St. John Health System, Inc. related entities. Form 990, Part VI, Section A, line 6 St. John Medical Center, Inc. has a single corporate member, St. John Health System, Inc. Form 990, Part VI, Section A, line 7a St. John Medical Center, Inc. has a single corporate member, St. John Health System, Inc., who has the ability to elect members to the governing body of St. John Medical Center, Inc. Form 990, Part VI, Section A, line 7b All decisions that have a material impact to St. John Medical Center, Inc.'s financial information or corporation as a whole are subject to approval by its sole corporate member, St. John Health System, Inc. Ascension Health, the sole corporate member of St. John Health System, Inc., has designated a system authority matrix which assigns authority for key decisions that are necessary in the operation of the System. Specific areas that are identified in the authority matrix are: new organizations and major transactions; governing documents; appointments/removals; evaluations; debt limits; strategic and financial plans; assets; system policies and procedures. These areas are subject to certain levels of approval by Ascension per the system authority matrix. Form 990, Part VI, Section B, line 11 St. John Medical Center, Inc. (SJMC) is an affiliate of St. John Health System, Inc. (SJHS). SJHS has hired a third party preparer experienced in the preparation of Form 990 to assist in the preparation of the return. The Senior Vice President/Chief Financial Officer and SJHS personnel will work closely with the paid preparer in gathering the information for the return and will perform the initial detailed review of the return. The return will then be reviewed by the SJHS Audit Committee (as delegated by the Board of the filing organization). A copy of the return will be provided to all voting Board Members of the filing Organization prior to filing. Form 990, Part VI, Section B, line 12c At every fiscal year end, St. John Health System, Inc. (SJHS) distributes a copy of the current Conflict of Interest Policy and Procedure Bulletin, together with an explanation and questionnaire to the members of the Board of Directors, administrative officers and key employees of SJHS, its subsidiaries and affiliates, including Jane Phillips Nowata Hospital, Inc. The Board Members, administrative officers and key employees of SJHS, its subsidiaries and affiliates must complete the questionnaire and return it to the designated SJHS official within two weeks of receipt. Completed questionnaires are reviewed and summarized by the Vice President, Corporate Compliance and Integrity, or his/her designee. That individual then presents the questionnaire results to the heads of each hospital for further provision to the various boards' Audit and Compliance Committees. The Audit and Compliance Committees, as appropriate, submit a confidential report to their Board Chairman summarizing the questionnaire results. The Board Chairman, as appropriate, may review with the Executive Committee the responses to the questionnaire results. Members of a committee with governing board delegated powers annually sign a statement which affirms such person has received a copy of the Conflict of Interest Policy, has read and understands the Policy, has agreed to comply with the Policy, and understands that the Organization is charitable and, in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish its tax-exempt purpose. Form 990, Part VI, Section B, line 15 Compensation for all executives in St. John Health System, Inc. ("SJHS"), of which St. John Medical Center, Inc. is a part, is analyzed by an independent health care consulting firm. The analysis includes a fair market value assessment and establishment of a range for each position based on research of comparable health care systems of similar size. The report and recommended compensation levels for each executive management position is reviewed and approved by the Executive Compensation Committee of the SJHS Board of Directors. During the review and approval of the compensation, documentation of the decision was recorded in the board minutes. Form 990, Part VI, Section C, line 19 The Organization will provide any documents open to public inspection upon request. Form 990, Part VII, Line 7b: Amounts paid to Manhattan Construction Company and Siemens Healthcare Diagnostics represent payments for both services and goods. These amounts cannot be separated. Form 990, Part IX, line 11g Professional Services: Program service expenses 37,984,027. Management and general expenses 639,797. Fundraising expenses 0. Total expenses 38,623,824. Contracted Services: Program service expenses 9,345,551. Management and general expenses 195,688. Fundraising expenses 0. Total expenses 9,541,239. Purchased Services: Program service expenses 3,510,308. Management and general expenses 58,522. Fundraising expenses 0. Total expenses 3,568,830. Laboratory: Program service expenses 11,860,179. Management and general expenses 0. Fundraising expenses 0. Total expenses 11,860,179. Miscellaneous: Program service expenses 102,289. Management and general expenses 0. Fundraising expenses 0. Total expenses 102,289. Form 990, Part XI, line 9: Transfers to Affiliates -28,856,750. Contributions 5,794,556. Released from Restrictions -7,757,985. Other Temporarily Restricted Net Assets 1,440,000. Other Resticted Activity -48,339,405. Other Unrestricted Activity 705,636. St John Dialysis LLC 1923 South Utica Avenue Tulsa OK 74104 731594503 Dialysis OK 0 0 St John Medical Center Inc St John Home Care LLC 1923 South Utica Avenue Tulsa OK 74104 384662704 Health Care OK 0 0 St John Medical Center Inc Ascension Health Alliance PO Box 45998 St Louis MO 631455998 453358926 National Health System MO 501(c)(3) Schedule A, Line 11a N/A 0 Ascension Health PO Box 45998 St Louis MO 63134 311662309 National Health System MO 501(c)(3) Schedule A, Line 11a Ascension Health Alliance 0 St John Health System Inc 1923 South Utica Avenue Tulsa OK 74104 731215174 System Parent OK 501(c)(3) Schedule A, Line 11a Ascension Health 0 Craig County Medical Services Corp 1923 South Utica Avenue Tulsa OK 74104 731487478 Health Care OK 501(c)(3) Schedule A, Line 9 St John Health System Inc 1 St John Sapulpa Inc 1923 South Utica Avenue Tulsa OK 74104 730662663 Health Care OK 501(c)(3) Schedule A, Line 3 St John Health System Inc 1 Jane Phillips Nowata Hospital Inc 237 South Locust Nowata OK 74048 731440267 Health Care OK 501(c)(3) Schedule A, Line 3 Jane Phillips Memorial Medical Center 1 Jane Phillips Memorial Medical Center 3500 E Frank Phillips Blvd Bartlesville OK 74006 730606129 Health Care OK 501(c)(3) Schedule A, Line 3 St John Health System Inc 1 Jane Phillips Health Care Foundation 3500 E Frank Phillips Blvd Bartlesville OK 74006 731250611 Rural Health Clinics OK 501(c)(3) Schedule A, Line 3 Jane Phillips Memorial Medical Center 1 Bartlett Homes Inc 1008 E Cleveland Sapulpa OK 74066 731301822 HUD Housing OK 501(c)(3) Schedule A, Line 7 St John Sapulpa Inc 1 Bethel Manor Inc 619 S Division Sapulpa OK 74066 731216617 HUD Housing OK 501(c)(3) Schedule A, Line 7 St John Sapulpa Inc 1 St John Building Corporation 1923 South Utica Avenue Tulsa OK 74104 611659782 Real Estate OK 501(c)(2) N/A St John Health System Inc 1 St John Health System Foundation Inc 1923 South Utica Avenue Tulsa OK 74104 731133139 Health Care OK 501(c)(3) Schedule A, Line 7 St John Health System Inc 1 St John Management Services Inc 1923 South Utica Avenue Tulsa OK 74104 203742040 Health Care OK 501(c)(3) Schedule A, Line 7 St John Health System Inc 1 St John Villas Inc 1923 South Utica Avenue Tulsa OK 74104 731077367 Nursing Home OK 501(c)(3) Schedule A, Line 9 St John Health System Inc 1 Owasso Medical Facility Inc 1923 South Utica Avenue Tulsa OK 74104 203700131 Health Care OK 501(c)(3) Schedule A, Line 3 St John Health System Inc 1 St John Broken Arrow Inc 1923 South Utica Avenue Tulsa OK 74104 383833117 Health Care OK 501(c)(3) Schedule A, Line 3 St John Health System Inc 1 St John Auxiliary 1923 South Utica Avenue Tulsa OK 74104 730999759 Health Care OK 501(c)(3) Schedule A, Line 9 St John Health System Inc 1 St Teresa of Avila Villas Inc 6859 South Canton Avenue Tulsa OK 74136 204791422 HUD Housing OK 501(c)(3) Schedule A, Line 7 St John Villas Inc 1 Platnum Fitness & Rehab Center LLC 4804 South 109th East Avenue Tulsa OK 74146 201879493 Health Club OK N/A Memorial Surgery Center LLC 8131 South Memorial Avenue Tulsa OK 74133 201167151 Operate ASC OK N/A Broken Arrow Development LLC 1924 South Utica Avenue Tulsa OK 74104 260748994 Medical Services OK N/A UticaUSP Tulsa LLC 15305 Dallas Pkwy Ste 1600 LB 28 Addison TX 75001 270408231 Medical Services TX N/A JPHC LLC 3500 SE Frank Phillips Blvd Bartlesville OK 74006 611498699 Medical Services OK N/A Utica Services Inc 1923 South Utica Avenue Tulsa OK 74104 731057650 Medical Services OK N/A C 0 Regional Medical Laboratories Inc 1923 South Utica Avenue Tulsa OK 74104 731131608 Medical Services OK N/A C 0 Physician Support Services Inc 1923 South Utica Avenue Tulsa OK 74104 731437252 Medical Services OK N/A C 0 OMNI Medical Group Inc 1923 South Utica Avenue Tulsa OK 74104 731335536 Medical Services OK N/A C 0 Outbound Medical Network Inc 1923 South Utica Avenue Tulsa OK 74104 731255463 Medical Services OK N/A C 0 St John Urgent Care Clinic Inc 1923 South Utica Avenue Tulsa OK 74104 204990275 Medical Services OK N/A C 0 St John Anesthesia Services Inc 1923 South Utica Avenue Tulsa OK 74104 203690446 Medical Services OK N/A C 0 St John Physicians Inc 1923 South Utica Avenue Tulsa OK 74104 731321032 Medical Services OK N/A C 0 Ceres Medical Practice Inc 3400 E Frank Phillips Blvd Bartlesville OK 74006 731522656 Medical Services OK N/A C 0 Doctors Building of Bartlesville 3500 State Street Bartlesville OK 74006 730759185 Building Rental OK N/A C 0 Gemini Medical Group Inc 3400 E Frank Phillips Blvd Bartlesville OK 74006 731503529 Medical Services OK N/A C 0 Gemini After Hours Clinic Inc 3400 E Frank Phillips Blvd Bartlesville OK 74006 300375407 Medical Services OK N/A C 0 Jane Phillips Specialty Physicians Inc 3400 E Frank Phillips Blvd Bartlesville OK 74006 010879962 Medical Services OK N/A C 0 Professional Credit Recovery 4100 SE Adams Blvd Bartlesville OK 74006 731057187 Collections Services OK N/A C 0 Synergy Hospitalist Grp Inc 3400 E Frank Phillips Blvd Bartlesville OK 74006 300375404 Medical Services OK N/A C 0 Professional Medical Insurance Risk Retention Group Inc 201 Merchant Street Suite 2400 Honolulu HI 96813 731525831 Insurance HI N/A C 0 Jane Phillips Support Services Inc 3400 E Frank Phillips Blvd Bartlesville OK 74006 751530296 Holding Company OK N/A C 0 0 1 1 1 1 0 0 0 0 1 1 1 1 0 1 1 1 1 1 St John Health System Inc O 164146024 FMV Utica Services Inc S 145581418 FMV St John Health System Inc P 129835951 FMV Utica Services Inc O 103132228 FMV St John Health System Inc L 102759288 FMV St John Health System Inc S 51559509 FMV St John Building Corporation L 24348152 FMV St John Building Corporation S 21043332 FMV Utica Services Inc M 20376142 FMV St John Sapulpa Inc Q 20223737 FMV St John Broken Arrow Inc S 18908847 FMV St John Health System Inc E 17217829 FMV St John Broken Arrow Inc L 15624438 FMV St John Broken Arrow Inc O 12766454 FMV Owasso Medical Facility Inc O 10941391 FMV St John Broken Arrow Inc Q 9514585 FMV St John Sapulpa Inc O 8446315 FMV St John Sapulpa Inc R 8368940 FMV Owasso Medical Facility Inc S 8190693 FMV St John Villas Inc Q 7827310 FMV Owasso Medical Facility Inc Q 7017003 FMV Utica Services Inc P 4717122 FMV St John Villas Inc O 4537084 FMV Owasso Medical Facility Inc L 4241655 FMV St John Health System Foundation Inc L 3935773 FMV St John Health System Foundation Inc C 3640083 FMV St John Villas Inc L 3462167 FMV Ascension Health L 3436883 FMV St John Sapulpa Inc L 3388192 FMV St John Health System Foundation Inc Q 3050000 FMV Jane Phillips Memorial Medical Center Inc S 2362944 FMV Jane Phillips Memorial Medical Center Inc L 2255388 FMV St John Building Corporation Q 2173622 FMV St John Health System Foundation Inc S 1207159 FMV St John Building Corporation K 856515 FMV St John Building Corporation O 673214 FMV OMNI Medical Group Inc B 567456 FMV St John Villas Inc S 386537 FMV St John Health System Inc J 328123 FMV St John Health System Foundation Inc O 320386 FMV Craig County Medical Services Corp Q 242035 FMV St John Villas Inc D 214596 FMV Jane Phillips Memorial Medical Center Inc O 136696 FMV Craig County Medical Services Corp R 124501 FMV Craig County Medical Services Corp L 117534 FMV St John Physicians Inc B 108578 FMV Utica Services Inc D 108211 FMV