2015-05-08T06:58:11-05:00 2014-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2013-07-01 231371947 THE GOOD SHEPHERD REHABILITATION HOSPITAL GOOD 6107763228 GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 RONALD J PETULA SVP OF FINANCE & CFO 6107763228 2015-05-04 1 JULIUS C GREEN CPA JD P00350393 2159720701 2013 2016-02-25 16:41:14Z RONALD J PETULA GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 81542130 0 X WWW.GOODSHEPHERDREHAB.ORG X 1909 PA TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING. 18 16 1523 0 5126877 1032713 1730576 1832631 76816147 79051249 64185 62126 456602 446638 79067510 81392644 0 0 0 0 41684224 41583858 0 0 0 38192252 39441151 79876476 81025009 -808966 367635 58365451 55380454 40633255 38302762 17732196 17077692 X GOOD SHEPHERD'S MISSION IS: "MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION." 0 0 67878731 74178365 THE GOOD SHEPHERD REHABILITATION HOSPITAL ("GSRH") IS A 106-BED REHABILITATION HOSPITAL WITH LOCATIONS IN ALLENTOWN, BETHLEHEM, AND EAST STROUDSBURG, PENNSYLVANIA. GSRH HOLDS THE FOLLOWING CARF (COMMISSION ON ACCREDITATION OF REHABILITATION FACILITIES) ACCREDITATIONS: - COMPREHENSIVE INTEGRATED INPATIENT (CHILDREN, ADOLESCENTS, ADULTS)- BRAIN INJURY INPATIENT REHABILITATION PROGRAM (CHILDREN, ADOLESCENTS, ADULTS)- INPATIENT STROKE REHABILITATION SPECIALTY PROGRAMPOST-ACUTE CARE IS PROVIDED FOR CHILDREN, ADOLESCENTS AND ADULTS WHO HAVE CONDITIONS THAT INCLUDE: AMPUTATION, ARTHRITIS, BRAIN INJURY, CHILDHOOD DEVELOPMENTAL DISABILITIES, CHRONIC PAIN, COMPLEX WOUNDS, MULTIPLE SCLEROSIS, MULTIPLE TRAUMA, ORTHOPEDIC INJURY, PULMONARY DISEASE, SPINAL CORD INJURY, AND STROKE. SERVICES ARE PROVIDED BY PHYSICAL MEDICINE AND REHABILITATION PHYSICIANS, REHABILITATION NURSES, PHYSICAL AND OCCUPATIONAL THERAPISTS, RESPIRATORY THERAPISTS, NEURO-PSYCHOLOGISTS, AND SPEECH-LANGUAGE PATHOLOGISTS. IN FISCAL YEAR 2014, GSRH DISCHARGED A TOTAL OF 1,664 PATIENTS FROM THE INPATIENT REHAB HOSPITALS, 99 PATIENTS FROM THE INPATIENT PEDIATRIC UNIT, AND PROVIDED 215,165 OUTPATIENT VISITS. 67878731 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 1 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 X 0 0 1 1523 1 1 1 0 0 0 0 1 1 0 0 0 0 X 18 16 0 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X RONALD J PETULA SVP OF FINANCE & CFO 6107763228 GOOD SHEPHERD PLAZA 850 SOUTH 5TH ALLENTOWN PA 18103 SCOTT A BAKER SECRETARY 0.30 0.90 X X 0 0 0 ALVARO DIAZ TRUSTEE 0.30 0.90 X 0 0 0 PATRICK J BRENNAN MD TRUSTEE 0.30 0.90 X 0 0 0 DAVID G DECAMPLI CHAIR 0.70 2.10 X X 0 0 0 ROBERT E GADOMSKI TRUSTEE 0.30 0.90 X 0 0 0 F MARK GUMZ TRUSTEE 0.30 0.90 X 0 0 0 ELSBETH G HAYMON TRUSTEE 0.30 0.90 X 0 0 0 KATHERINE E HILGERT TRUSTEE 0.20 0.60 X 0 0 0 SANDRA JARVA WEISS ESQ VICE CHAIR 0.20 0.60 X X 0 0 0 NAKTIN JAAN PETER MD TRUSTEE 0.20 0.60 X 0 0 0 LAURIE STEWART TREASURER 0.30 0.90 X X 0 0 0 THE REV DAVID R STROBEL TRUSTEE 0.20 0.60 X 0 0 0 DANIEL J WILSON PHD TRUSTEE 0.30 0.90 X 0 0 0 JOHN KRISTEL PRESIDENT/CEO 8.50 51.50 X X 0 345121 17831 KAREN SENFT TRUSTEE 0.20 0.60 X 133176 0 9114 ROSALIN PETRUCCI TRUSTEE 0.20 0.50 X 0 0 0 GARY R SCHMIDT TRUSTEE 0.20 0.50 X 0 0 0 DONALD SNYDER TRUSTEE 0.20 0.50 X 0 0 0 DANIEL C CONFALONE SVP & CFO (UNTIL 11/1/13) 31.00 29.00 X 0 355847 25255 SAMUEL A MIRANDA JR SVP & CNO 40.00 20.00 X 0 219436 53224 RONALD PETULA SVP & CFO 31.00 29.00 X 0 159857 16515 SARA T GAMMON PRESIDENT/CEO (UNTIL 7/18/13) 8.60 31.40 X 0 1037018 37472 ROSAURO DALOPE MED DIR PEDS 40.00 X 238157 0 11291 DEMETRICE WARD PURVIS STAFF PHYSIATRIST 40.00 X 278460 0 21907 JAMES J DALEY MD MED DIR AMPUTEE PRGM 39.00 1.00 X 226992 0 20761 DEBORAH KIMMEL MED DIR BRAIN INJURY 40.00 X 225638 0 20822 CHIRAG KALOLA PHYSICIAN PAIN PROGRAM 40.00 X 215444 0 17594 1317867 2117279 251786 13 0 1 0 POCONO MEDICAL CENTER 206 EAST BROWN STREET EAST STROUDSBURG PA 18301 MEDICAL SERVICES 1017507 COMPHEALTH PO BOX 972651 DALLAS TX 75397 PHYSICIAN LOCUMS 941017 BOYLE CONSTURCTION 1209 HAUSMAN ROAD ALLENTOWN PA 18104 CONTRACTING SERVICES 305362 HEALTH NETWORK LABS 2024 LEHIGH STREET ALLENTOWN PA 18103 LABORATORY SERVICES 299127 SODEXO PO BOX 360170 PITTSBURGH PA 15251 DIETARY 208053 10 149486 1580260 102885 1832631 NET PATIENT SVC REV 623000 73642330 73642330 PROFESSIONAL SVCS REV 621110 5408919 314510 5094409 79051249 61842 61842 284 0 284 284 284 339207 149486 149486 189721 189721 FITNESS CENTER 713940 145138 145138 LIFESTYLE PRDUCTS/SVCS 446199 108855 76387 32468 MED REC ABSTRACTING 561439 2924 2924 256917 81392644 74178365 5126877 254771 32821822 29673139 3148683 2175571 1966863 208708 4272477 3862607 409870 2313988 2103183 210805 12119 12119 3138554 2727276 411278 61493 60593 900 433470 320080 113390 2233708 1280056 953652 57533 51652 5881 136217 117311 18906 3841648 3841648 70138 70138 UBI TAXES 365067 365067 CORPORATE ALLOCATION 25036834 18026520 7010314 MEDICAL SUPPLIES 3086552 3069151 17401 BAD DEBT EXPENSE 575644 575644 392174 120751 271423 81025009 67878731 13146278 0 11771 9751 11896659 11043012 502927 536898 1147027 1158458 120004155 78125464 44102307 41878691 704760 753644 58365451 55380454 17643126 16301660 22990129 22001102 40633255 38302762 X 17732196 17077692 17732196 17077692 58365451 55380454 X 367635 -1022139 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 12119 12119 0 PART II-B, LINE 1: THE GOOD SHEPHERD REHABILITATION HOSPITAL ("GSRH") PAID DUES TO VARIOUS ORGANIZATIONS DURING THE YEAR ENDED JUNE 30, 2014. THESE ORGANIZATIONS INFORMED GSRH THAT A PERCENTAGE OF THOSE DUES WERE USED FOR LOBBYING PURPOSES, AS FOLLOWS: 1) THE HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA ("HAP") - $5,844. 2) THE AMERICAN MEDICAL REHABILITATION PROVIDERS ASSOCIATION ("AMRPA") - $6,275. 2188957 2188957 56988546 28140896 28847650 7540069 5553174 1986895 48290045 40596574 7693471 4996538 3834820 1161718 41878691 ESTIMATED THIRD-PARTY PAYOR SETTLEMENTS 1368383 ADVANCE FROM THIRD-PARTY PAYOR 277900 AMOUNTS DUE TO AFFILIATES 20354819 22001102 X 79944347 -1109090 -1109090 81053437 339207 339207 81392644 80598851 149486 149486 80449365 575644 575644 81025009 PART X, LINE 2: GOOD SHEPHERD PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY IN RECORDING TAX LIABILITIES IN THE FINANCIAL STATEMENTS. MEASUREMENT AND RECOGNITION OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. GOOD SHEPHERD'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES. GOOD SHEPHERD'S FEDERAL EXEMPT ORGANIZATION RETURNS OF INCOME TAX AND ITS BUSINESS INCOME TAX RETURNS FOR YEARS ENDED PRIOR TO JUNE 30, 2011 NO LONGER REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 2D - OTHER ADJUSTMENTS: PENSION LIABILITY ADJUSTMENT -533,446. BAD DEBT EXPENSE -575,644. PART XI, LINE 4B - OTHER ADJUSTMENTS: SPECIAL EVENTS EXPENSE -149,486. NET ASSETS RELEASED ADJUSTMENT FOR SPECIAL EVENTS 488,693. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENTS EXPENSE 149,486. PART XII, LINE 4B - OTHER ADJUSTMENTS: BAD DEBT EXPENSE 575,644. GALA IN THE GARDEN 262128 77465 184663 31071 29578 3080 13737 GOLF & TENNIS CLASSIC 158310 51257 107053 750 25290 13189 12027 1 68255 20764 47491 750 8206 6850 4958 488693 149486 339207 1500 64567 49617 3080 30722 149486 189721 1 1 X 1 X 0 1 1 1 0 1 1 543887 543887 0.00680 11849980 8986415 2863565 0.03560 12393867 8986415 3407452 0.04240 40641 590 40051 0.00050 3096803 100 3096703 0.03850 5436305 4654096 782209 0.00970 5568 5568 0.00010 8579317 4654786 3924531 0.04880 20973184 13641201 7331983 0.09120 1 118237 14188 22777589 25253311 -2475722 X 1 1 1 1 GOOD SHEPHERD REHABILITATION HOSPITAL 850 SOUTH 5TH STREET ALLENTOWN PA 18103 X REHABILITATION HOSPITAL GOOD SHEPHERD REHABILITATION HOSPITAL 1 1 X X X X X X X X X 12 1 1 1 X SEE SUPPLEMENTAL INFORMATION X X X X X X 0 0 1 1 200.000000000000 0 1 X X X X X 1 1 X X X X X 1 0 X X X X 0 X X 0 0 GOOD SHEPHERD REHABILITATION HOSPITAL PART V, SECTION B, LINE 3: THE HEALTH CARE COUNCIL OF LEHIGH VALLEY ("HCCLV") SHARED AND DISCUSSED SECONDARY DATA FINDINGS WITH SEVERAL KEY HEALTH EXPERTS VIA ONE-ON-ONE INTERVIEWS CONDUCTED BETWEEN MARCH AND OCTOBER 2012:-ALBERTO CARDELLE, PHD, MPH CHAIR AND PROFESSOR OF THE DEPARTMENT OF HEALTH STUDIES AT EAST STROUDSBURG UNIVERSITY'S SCHOOL OF PUBLIC HEALTH-VICKY KISTLER, DIRECTOR OF THE ALLENTOWN HEALTH BUREAU-KRISTEN WENRICH, INTERIM DIRECTOR (NOW DIRECTOR) OF THE BETHLEHEM HEALTH BUREAU-DIANE LEUTHARDT, DEVELOPMENT DIRECTOR, LEHIGH VALLEY CHAPTER OF THE AMERICAN LUNG ASSOCIATION-KAREN SCHIAVONE, SENIOR CANCER CONTROL SPECIALIST, AMERICAN CANCER SOCIETY-CARLY HOOD, SENIOR DIVISION DIRECTOR, AMERICAN HEART ASSOCIATION-MOLLY DEMARCO, PHD, MPH, CENTER FOR HEALTH PROMOTION AND DISEASE PREVENTION, UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL-ALEXANDRA LIGHTFOOT, ED. D CENTER FOR HEALTH PROMOTION AND DISEASE PREVENTION, UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL-MELVIN JACKSON, MSPH, COMMUNITY EXPERT CONSULTANT, STRENGTHENING THE BLACK FAMILY, INC.-LISSETTE LAHOZ, EXECUTIVE DIRECTOR OF NEIGHBORHOOD HEALTH CENTERS OF THE LEHIGH VALLEYCOMMUNITY LEADERS AND REPRESENTATIVES ALSO TOOK PART IN ONE-ON-ONE AND SMALL GROUP DISCUSSIONS AND LARGE COMMUNITY DIALOGUES BETWEEN SEPTEMBER AND DECEMBER 2012-PHYLLIS ALEXANDER-NEIGHBORHOOD COORDINATOR, CITY OF ALLENTOWN-ERNEST PERRY- EXECUTIVE DIRECTOR, PROMISE NEIGHBORHOODS OF THE LEHIGH VALLEY-GARY MILSBAUGH- EXECUTIVE DIRECTOR, ALLENTOWN RESCUE MISSION-PASTOR GREG EDWARDS- CEO, RESURRECTED COMMUNITY DEVELOPMENT CORPORATION-LORNA VELASQUEZ- EXECUTIVE DIRECTOR, HISPANIC CENTER LEHIGH VALLEY-JULIO GURIDY- PRESIDENT, ALLENTOWN CITY COUNCIL-KEVIN EASTERLING- EXECUTIVE DIRECTOR OF THE MARTIN LUTHER AND CORETTA SCOTT KING MEMORIAL-JOSH CHISHOLM- EXECUTIVE DIRECTOR, CONGREGATIONS UNITED FOR NEIGHBORHOOD ACTIONS-JEFF GLAZIER- ALLENTOWN CITY COUNCIL-JOSEPH ROY- SUPERINTENDENT, BETHLEHEM AREA SCHOOL DISTRICT-MARCI RONALD- VICE PRESIDENT, COMMUNITY IMPACT, UNITED WAY OF THE GREATER LEHIGH VALLEY-ANA MARTINEZ- SCHOOL OUTREACH WORKER, ALLENTOWN SCHOOL DISTRICT-ROGER HUDAK- CHAIRMAN, BETHLEHEM'S MAYOR'S SOUTH SIDE TASK FORCE-ROSS MARCUS- NORTHAMPTON COUNTY HUMAN SERVICES DIRECTOR-ANDREW WEISS- ALLENTOWN SCHOOL DISTRICT BOARD OF DIRECTORSEXTENSIVE COMMUNITY-BASED PARTICIPATORY RESEARCH (C-BPR) DIALOGUES WERE HELD IN TWO FEDERALLY-DESIGNATED MEDICALLY UNDERSERVED AREAS OF OUR REGION. FACILITATED BY NATIONAL EXPERT C-BP RESEARCHERS, FOUR 3-HOUR DIALOGUES WERE HELD WITH 170 COMMUNITY LEADERS AND MEMBERS TO DISCUSS AND PRIORITIZE HEALTH- CARE FINDINGS AND ISSUES IDENTIFIED IN THE COMMUNITY HEALTH PROFILE. GOOD SHEPHERD REHABILITATION HOSPITAL PART V, SECTION B, LINE 4: THE HCCLV INCLUDES REPRESENTATION FROM THE DOROTHY RIDER POOL HEALTH CARE TRUST, GOOD SHEPHERD REHABILITATION NETWORK, LEHIGH VALLEY HEALTH NETWORK, SACRED HEART HEALTHCARE SYSTEM, ST. LUKE'S UNIVERSITY HOSPITAL AND HEALTH NETWORK AND THE KIDSPEACE PSYCHIATRIC HOSPITAL. GOOD SHEPHERD REHABILITATION HOSPITAL PART V, SECTION B, LINE 5D: IN NOVEMBER 2012, THE ROAD TO HEALTH, AN EASY TO NAVIGATE COMMUNITY HEALTH PROFILE (THE WRITTEN REPORT OF FINDINGS) WAS MADE WIDELY AVAILABLE TO THE PUBLIC.-AVAILABLE IN ENGLISH AND SPANISH-ELECTRONICALLY SENT TO OVER 300 STAKEHOLDERS-ACCESSIBLE ON ALL OF THE HCCLV MEMBERS' WEBSITES-OVER 400 HARD COPIES MADE AVAILABLE THROUGHOUT THE LEHIGH VALLEY-LINKS TO THE REPORT WERE PRINTED ON THE FRONT PAGE OF THE LARGEST NEWSPAPERS IN THE AREA, AS WELL AS ON ELECTRONIC VERSIONS OF THE NEWSPAPERS-THE ROAD TO HEALTH WAS ALSO SENT TO THE ELECTED OFFICIALS SERVING IN THE LEHIGH VALLEY-COPIES CAN ALSO BE REQUESTED THROUGH A DEDICATED EMAIL ACCOUNT ESTABLISHED EXCLUSIVELY FOR THE HCCLV GOOD SHEPHERD REHABILITATION HOSPITAL PART V, SECTION B, LINE 7: THE NEED TO ENHANCE THE COLLECTION AND DISSEMINATION OF HEALTH INFORMATION AMONG THE PARTNERS IN THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY FOR EACH OF THE SIX MAJOR CAUSES OF DEATH IN THE REGION IS STILL IN THE PROCESS OF DEVELOPING A DATA SHARE AGREEMENT THAT WILL ALLOW UNDUPLICATED INFORMATION TO BE AGGREGATED. WE ALSO DID NOT ADDRESS THE SOCIAL DETERMINANTS OF HEALTH AND HEALTH DISPARITIES FOR EVERY ONE OF THE SIX MAJOR CAUSES OF DEATH IN THE REGION BECAUSE OUR BUSINESS OF PROVIDING POST-ACUTE CARE AND MEDICAL REHABILITATION DOES NOT FOCUS DIRECTLY ON AMELIORATING SOME OF THOSE CAUSES OF DEATH. GOOD SHEPHERD REHABILITATION HOSPITAL PART V, SECTION B, LINE 11: GOOD SHEPHERD REHABILITATION HOSPITAL (THE HOSPITAL) HAS A WRITTEN CHARITY CARE POLICY. ALL PATIENTS ARE NOTIFIED OF GOOD SHEPHERD'S CHARITY CARE AVAILABILITY PRIOR TO THE START OF THEIR CARE. GENERALLY, PATIENTS QUALIFY UNDER THE HOSPITAL'S CHARITY CARE POLICY IF THEIR INCOME IS LESS THAN 200% OF THE CURRENT FEDERAL POVERTY GUIDELINES. THE COMPLETION OF THE CHARITY CARE APPLICATION CONFIRMS THIS PREMISE. HOWEVER, OTHER FACTORS ARE ALSO USED TO DETERMINE ELIGIBILITY INCLUDING:-SOURCES OF INCOME-LIVING EXPENSES-OTHER PERSONAL ASSETS AND LIABILITIES-DEMOGRAPHIC INFORMATION-ONGOING HEALTHCARE NEEDSQUALIFICATION UNDER THE HOSPITAL'S CHARITY CARE POLICY ENTITLES PATIENTS TO COMPLETELY FREE CARE. THE HOSPITAL DOES NOT OFFER A PROGRAM OF DISCOUNTED CHARITY CARE. HOWEVER, PATIENTS THAT DO NOT QUALIFY FOR CHARITY CARE AND HAVE NO INSURANCE ARE OFFERED A DISCOUNTED PRIVATE PAY RATE FOR SERVICES, PAYABLE AT THE TIME OF SERVICE. THE DISCOUNTED PRIVATE PAY RATE IS DETERMINED CONSIDERING THE ESTIMATED COST OF SERVICES PROVIDED. GOOD SHEPHERD REHABILITATION HOSPITAL PART V, SECTION B, LINE 12I: THE DISCOUNTED PRIVATE PAY RATE IS BASED ON COST OF SERVICE. GOOD SHEPHERD REHABILITATION HOSPITAL PART V, SECTION B, LINE 20D: THE HOSPITAL PROVIDES POST-ACUTE MEDICAL CARE. SERVICES PROVIDED ARE NOT CONSIDERED EMERGENCY MEDICAL CARE. WITH RESPECT TO MEDICALLY NECESSARY CARE, THE AMOUNT THAT THE HOSPITAL BILLS FOR SERVICES PROVIDED TO FINANCIAL ASSISTANCE POLICY-ELIGIBLE INDIVIDUALS IS CHARGES. THEY ARE THE SAME CHARGES AS ARE BILLED TO ALL OTHER INDIVIDUALS OR THIRD-PARTY PAYORS. HOWEVER, PATIENTS THAT DO NOT QUALIFY FOR CHARITY CARE AND HAVE NO INSURANCE ARE OFFERED A DISCOUNTED PRIVATE PAY RATE FOR SERVICES, PAYABLE AT THE TIME OF SERVICE. THE DISCOUNTED PRIVATE PAY RATE IS DETERMINED CONSIDERING THE ESTIMATED COST OF SERVICES PROVIDED. PART V, SECTION B, LINE 5A HTTP://WWW.GOODSHEPHERDREHAB.ORG/ABOUT/COMMUNITY-HEALTH-NEEDS-ASSESSMENT PART I, LINE 3C: GOOD SHEPHERD REHABILITATION HOSPITAL (THE HOSPITAL) HAS A WRITTEN CHARITY CARE POLICY. ALL PATIENTS ARE NOTIFIED OF GOOD SHEPHERD'S CHARITY CARE AVAILABILITY PRIOR TO THE START OF THEIR CARE. GENERALLY, PATIENTS AUTOMATICALLY QUALIFY UNDER THE HOSPITAL'S CHARITY CARE POLICY IF THEIR INCOME IS LESS THAN 200% OF THE CURRENT FEDERAL POVERTY GUIDELINES. HOWEVER, OTHER FACTORS ARE ALSO USED TO DETERMINE ELIGIBILITY INCLUDING:-SOURCES OF INCOME-LIVING EXPENSES-OTHER PERSONAL ASSETS AND LIABILITIES-DEMOGRAPHIC INFORMATION-ONGOING HEALTHCARE NEEDSQUALIFICATION UNDER THE HOSPITAL'S CHARITY CARE POLICY ENTITLES PATIENTS TO COMPLETELY FREE CARE. THE HOSPITAL DOES NOT OFFER A PROGRAM OF DISCOUNTED CHARITY CARE. HOWEVER, PATIENTS THAT DO NOT QUALIFY FOR CHARITY CARE AND HAVE NO INSURANCE ARE OFFERED A DISCOUNTED PRIVATE PAY RATE FOR SERVICES, PAYABLE AT THE TIME OF SERVICE. THE DISCOUNTED PRIVATE PAY RATE IS DETERMINED CONSIDERING THE ESTIMATED COST OF SERVICES PROVIDED. THE HOSPITAL'S POLICY ALSO PROVIDES FOR CHARITY CARE FOR CERTAIN PATIENTS UNDER UNIQUE CIRCUMSTANCES. THESE CIRCUMSTANCES INCLUDE PATIENTS WHO MAY EXPERIENCE SIGNIFICANT FINANCIAL HARDSHIP OR PERSONAL FINANCIAL LOSS REGARDLESS OF THEIR INCOME, INCLUDING PATIENTS WHO MAY BE CLASSIFIED AS "MEDICALLY INDIGENT." THESE UNIQUE CIRCUMSTANCES ARE REVIEWED BY ADMINISTRATION, PURSUANT TO POLICY. THE GOOD SHEPHERD AUDITED FINANCIAL STATEMENTS PROVIDE THE FOLLOWING DISCLOSURES WITH RESPECT TO CHARITY CARE:"GOOD SHEPHERD PROVIDES A SIGNIFICANT AMOUNT OF CHARITY CARE TO PATIENTS WHO MEET CERTAIN CRITERIA REGARDLESS OF THEIR ABILITY TO PAY. THE CRITERIA FOR CHARITY CONSIDERS FAMILY SIZE, SOURCES OF INCOME, LIVING EXPENSES, NET WORTH, ONGOING HEALTHCARE NEEDS, AS WELL AS OTHER PERTINENT INFORMATION. BECAUSE GOOD SHEPHERD DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS REVENUES. GOOD SHEPHERD MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE IT PROVIDES. THE COSTS ASSOCIATED WITH THE CHARITY CARE SERVICES PROVIDED ARE ESTIMATED BY APPLYING A COST-TO-CHARGE RATIO TO THE AMOUNT OF GROSS UNCOMPENSATED CHARGES FOR THE PATIENTS RECEIVING CHARITY CARE. THE LEVEL OF CHARITY CARE PROVIDED BY GOOD SHEPHERD AMOUNTED TO APPROXIMATELY $522,000 IN 2014 AND $862,000 IN 2013. GOOD SHEPHERD RECEIVED $2,450 AND $7,732 IN CONTRIBUTIONS RESTRICTED FOR CHARITY CARE DURING 2014 AND 2013, RESPECTIVELY." PART I, LINE 6A: THE HOSPITAL'S COMMUNITY BENEFIT ACTIVITIES ARE INCLUDED WITHIN AND REPORTED AS PART OF AN ANNUAL REPORT TO THE COMMUNITY, PUBLISHED ON A CONSOLIDATED BASIS BY GOOD SHEPHERD REHABILITATION NETWORK (GSRN). THIS REPORT INCLUDES THE COMMUNITY BENEFIT ACTIVITIES PROVIDED BY GSRN, AS WELL AS BY ITS CONTROLLED ENTITIES (INCLUDING THE HOSPITAL). THIS REPORT IS DISTRIBUTED AND MADE AVAILABLE TO THE PUBLIC IN SEVERAL MANNERS, INCLUDING BEING AVAILABLE ON THE GSRN WEBSITE. A COMMUNITY BENEFIT REPORT IS NOT REQUIRED TO BE FILED WITH THE COMMONWEALTH OF PENNSYLVANIA AND, ACCORDINGLY, GSRN HAS NOT FILED ONE.IN ORDER TO BETTER UNDERSTAND THE ORGANIZATIONAL, FINANCIAL AND OPERATIONAL COMPLEXITIES OF THE ORGANIZATIONS CONTAINED WITHIN GSRN, THE FOLLOWING INFORMATION IS PROVIDED:THE HOSPITAL'S FINANCIAL RESULTS ARE REPORTED AS A COMPONENT OF THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD). SEPARATE AUDITED FINANCIAL STATEMENTS ARE NOT PREPARED FOR THE HOSPITAL. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF GOOD SHEPHERD INCLUDE THE FOLLOWING CORPORATIONS:-GOOD SHEPHERD REHABILITATION NETWORK (GSRN), THE CONTROLLING PARENT CORPORATION, FORMERLY GOOD SHEPHERD HOME-GOOD SHEPHERD REHABILITATION HOSPITAL (THE HOSPITAL)-GOOD SHEPHERD HOME LONG-TERM CARE FACILITY, INC. (LTC)-GOOD SHEPHERD LONG-TERM ACUTE SERVICES, INC., D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL (THE SPECIALTY HOSPITAL)-GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION (SUPPIL)-GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP (THE RRG)-GOOD SHEPHERD GROUP, LLC (GS GROUP)GOOD SHEPHERD'S PRIMARY OPERATIONS ARE CONDUCTED WITHIN THE HOSPITAL, WHICH PROVIDES COMPREHENSIVE INPATIENT REHABILITATION SERVICES AND OUTPATIENT REHABILITATION SERVICES AT NUMEROUS LOCATIONS. THE LTC OPERATES TWO SKILLED NURSING FACILITIES WHICH SERVICE THE NEEDS OF SEVERELY DISABLED ADULTS. THE SPECIALTY HOSPITAL PROVIDES SERVICES THAT REPRESENT THE FIRST STEP IN THE POST ACUTE CARE PROCESS OF RECOVERY. THE RRG IS A SELF INSURANCE COMPANY THAT PROVIDES PRIMARY LIABILITY INSURANCE AND RISK MANAGEMENT SERVICES. SUPPIL PROVIDES SUPPORTIVE INDEPENDENT HOUSING TO PERSONS WITH DISABILITIES UNDER SECTION 811 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. GS GROUP WAS ESTABLISHED TO DEVELOP A WHEELCHAIR DEVICE TO ASSIST REHABILITATION PATIENTS.IN ADDITION TO THE ORGANIZATIONS DESCRIBED ABOVE, IN JANUARY 2007, GSRN ENTERED INTO A JOINT VENTURE AGREEMENT WITH THE TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA (THE UNIVERSITY) TO CREATE PHILADELPHIA POST ACUTE PARTNERS, LLC D/B/A GOOD SHEPHERD PENN PARTNERS (GSPP). GSPP WAS CREATED TO ESTABLISH AND OPERATE A NEW LONG-TERM ACUTE CARE HOSPITAL, TO ASSUME THE OWNERSHIP OF AND CONTINUE TO OPERATE ALL OF THE OUTPATIENT OPERATIONS OF THE UNIVERSITY, TO CARRY OUT THE DAY-TO-DAY OPERATIONS OF THE HOSPITAL OF THE UNIVERSITY OF PENNSYLVANIA'S (HUP'S) INPATIENT REHABILITATION UNIT, AND TO PROVIDE THE UNIVERSITY AND ITS AFFILIATES WITH CERTAIN CLINICAL AND/OR STAFFING SERVICES RELATING TO REHABILITATION. GSRN IS A 70% OWNER OF GSPP; HOWEVER, THE OPERATIONS OF GSPP ARE NOT CONSOLIDATED WITHIN THE CONSOLIDATED FINANCIAL STATEMENTS OF GOOD SHEPHERD AS GSRN IS NOT DEEMED TO HAVE CONTROL OVER GSPP. AS A RESULT, GSRN RECORDS THEIR INVESTMENT IN GSPP UNDER THE EQUITY METHOD OF ACCOUNTING WITHIN THE GSRN CONSOLIDATED FINANCIAL STATEMENTS. PART I, LINE 7: THE HOSPITAL USED A COST-TO-CHARGE RATIO IN DETERMINING THE FIGURES REPORTED IN THIS TABLE. THIS COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2 RATIO OF PATIENT CARE COST-TO CHARGES. PART I, LINE 7G: OF THE NET COMMUNITY BENEFIT EXPENSE OF $782,209, REPORTED ON PART I, LINE 7G, COLUMN (E), $816,772 IS RELATED TO THE NET LOSS FROM THE HOSPITAL'S DEVELOPMENTAL PEDIATRICIAN AND PEDIATRICIAN OPERATING UNIT. THIS OPERATING LOSS INCLUDES THE PROFESSIONAL FEES EARNED BY THESE PHYSICIANS, AS WELL AS THE DIRECT SALARY AND WAGES AND OTHER OPERATING EXPENSES NECESSARY TO GENERATE SUCH PROFESSIONAL FEES. IN ADDITION, $80,261 OF OVERHEAD COSTS WAS ALLOCATED TO THIS OPERATING UNIT, BASED UPON THE SAME RELATIVE NET REVENUE ALLOCATION METHODOLOGY USED IN THE DEVELOPMENT OF INTERNAL FINANCIAL STATEMENTS. PART I, LN 7 COL(F): THE AMOUNT OF BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $575,644. PART II, COMMUNITY BUILDING ACTIVITIES: WHILE MINIMAL COMMUNITY BUILDING ACTIVITIES ARE PROVIDED DIRECTLY WITHIN THE HOSPITAL, GSRN, THE HOSPITAL'S PARENT COMPANY, PROVIDED $17,525 OF SUCH ACTIVITIES DURING THE 2014 FISCAL YEAR. THESE ACTIVITIES TOOK THE FORM OF EXECUTIVE AND GOVERNMENT AND COMMUNITY RELATIONS BOARD MEMBERSHIPS, PARTICIPATION IN THE PARTNERSHIP FOR A DISABILITY FRIENDLY COMMUNITY, AMERICAN MEDICAL REHABILITATION PROVIDERS ASSOCIATION (AMRPA) BOARD AND UNITED WAY BOARD AND COMMITTEE MEMBERSHIPS AS WELL AS VARIOUS WORKFORCE DEVELOPMENT ACTIVITIES.THESE ACTIVITIES WERE NOT PROVIDED FOR PURPOSES OF MARKETING, TO INCREASE REFERRALS OF PATIENTS WITH THIRD-PARTY INSURANCE COVERAGE, IN FULFILLMENT OF REGULATORY REQUIREMENTS OR CURRENT STANDARDS OF CARE, OR TO BENEFIT PERSONS AFFILIATED WITH GSRN. RATHER, THE PRIMARY PURPOSE OF THESE COMMUNITY BUILDING ACTIVITIES IS TO BENEFIT THE COMMUNITY AND SHOULD BE CONSIDERED AS A COMPONENT OF COMMUNITY BENEFIT. FOR EXAMPLE, PARTICIPATION IN THE PARTNERSHIP FOR A DISABILITY FRIENDLY COMMUNITY DIRECTLY BENEFITS THE DISABILITY COMMUNITY. SPECIFICALLY, THE PARTNERSHIP EDUCATES AND EMPOWERS INDIVIDUALS WITH DISABILITIES AND THEIR CAREGIVERS TO BETTER CARE FOR THEMSELVES AND TO IDENTIFY AND UTILIZE RESOURCES THAT ARE ALREADY AVAILABLE TO THEM WITHIN THE COMMUNITY. WITHOUT SUCH EDUCATION AND EMPOWERMENT, THERE IS A RISK THAT THOSE INDIVIDUALS WITH DISABILITIES EITHER DO NOT RECEIVE THE CARE OR ASSISTANCE THEY REQUIRE, OR THEY OVER-RELY ON THE SERVICES OF THE MEDICAL COMMUNITY FOR EVEN THE MOST BASIC OF NEEDS. THE VALUE OF THE COMMUNITY BUILDING ACTIVITIES PROVIDED DURING THE 2014 FISCAL YEAR WAS DETERMINED BASED UPON ACTUAL REPORTED HOURS VALUED AT THE AVERAGE SALARY AND BENEFIT RATE PER HOUR OF ALL GOOD SHEPHERD EMPLOYEES. CONSERVATIVELY, NO APPLICATION OF INDIRECT OR OVERHEAD COSTS WAS APPLIED TO THESE DIRECT COSTS.ALL GSRN COSTS, INCLUSIVE OF THE COSTS ASSOCIATED WITH COMMUNITY BUILDING ACTIVITIES, ARE ALLOCATED TO GSRN'S SUBSIDIARY CORPORATIONS BASED UPON A COMPREHENSIVE ALLOCATION METHODOLOGY WHICH CONSIDERS DEPARTMENTAL RESOURCE UTILIZATION AND RELATIVE NET PATIENT SERVICE REVENUE, AMONG OTHER FACTORS. PART III, LINE 2: TOTAL BAD DEBT EXPENSE (AT COST) WAS DETERMINED BY APPLYING THE COST-TO-CHARGE RATIO, DERIVED FROM WORKSHEET 2 RATIO OF PATIENT CARE COST-TO CHARGES TO TOTAL THE NET OF ACTUAL BAD DEBT WRITE-OFF'S AND RECOVERIES PROCESSED DURING THE 2014 FISCAL YEAR. PART III, LINE 3: FOR PURPOSES OF PART III, SECTION A, LINE 3, THE FOLLOWING PROCESS WAS USED TO ESTIMATE THE AMOUNT OF THE HOSPITAL'S BAD DEBT EXPENSE (AT COST) ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE HOSPITAL'S CHARITY CARE POLICY:TOTAL BAD DEBT EXPENSE (AT COST), PER PART III, SECTION A, LINE 2, WAS USED AS A STARTING POINT. THEN, BAD DEBT AT COST WAS MULTIPLIED BY THE ESTIMATED POVERTY PERCENTAGE (12%), OF THE HOSPITAL'S 5-COUNTY PRIMARY SERVICE AREA. THIS WAS DETERMINED BASED UPON THE EXAMINATION OF COMMONWEALTH OF PENNSYLVANIA REPORTS, GENERATED FROM THE MOST RECENTLY-PUBLISHED US CENSUS DATA. PART III, LINE 4: THE FOLLOWING IS THE TEXT OF THE FOOTNOTE TO GOOD SHEPHERD'S AUDITED FINANCIAL STATEMENTS (WHICH CONTAIN THE ACCOUNTS OF THE HOSPITAL) THAT DESCRIBES BAD DEBT EXPENSE:"ACCOUNTS RECEIVABLE, PATIENTS ARE REPORTED AT NET REALIZABLE VALUE. ACCOUNTS ARE WRITTEN-OFF WHEN THEY ARE DETERMINED TO BE UNCOLLECTIBLE BASED UPON MANAGEMENT'S ASSESSMENT OF INDIVIDUAL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF PATIENT ACCOUNTS RECEIVABLE, GOOD SHEPHERD ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, GOOD SHEPHERD ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY. FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS, GOOD SHEPHERD RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE BILLED RATES AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS.GOOD SHEPHERD'S ALLOWANCE FOR DOUBTFUL ACCOUNTS FOR SELF-PAY PATIENTS INCREASED FROM 54% OF SELF-PAY ACCOUNTS RECEIVABLE AT JUNE 30, 2013, TO 58% OF SELF-PAY ACCOUNTS RECEIVABLE AT JUNE 30, 2014. IN ADDITION, GOOD SHEPHERD'S SELF-PAY ACCOUNT WRITE-OFFS (NET OF RECOVERIES) DECREASED FROM $880,000 IN 2013 TO $341,000 IN 2014. THE DECREASE IN THE WRITE-OFFS IS THE RESULT OF THE WRITE-OFF OF OLDER SELF-PAY ACCOUNTS IN 2013 THAT EXISTED AS OF JUNE 30, 2012. GOOD SHEPHERD DID NOT CHANGE THEIR FINANCIAL ASSISTANCE POLICY IN 2014 AND 2013. GOOD SHEPHERD DOES NOT MAINTAIN A MATERIAL ALLOWANCE FOR DOUBTFUL ACCOUNTS FROM THIRD-PARTY PAYORS, NOR DID IT HAVE SIGNIFICANT WRITE-OFFS FROM THIRD-PARTY PAYORS." PART III, LINE 8: THE COSTING METHODOLOGY UTILIZED IN THE DETERMINATION OF THE MEDICARE ALLOWABLE COSTS REPORTED IN THE HOSPITAL'S COST REPORT IS QUITE COMPREHENSIVE. DIRECTLY ALLOCATED COSTS ARE USED AS A STARTING POINT AND OTHER COSTS ARE STEPPED-DOWN TO THE HOSPITAL BASED UPON INDUSTRY-ACCEPTABLE ALLOCATION METHODOLOGIES. THE HOSPITAL HAS REPORTED A MEDICARE SHORTFALL OF ($2,475,722) IN PART III, SECTION B (MEDICARE), LINE 7. THIS SHORTFALL SHOULD BE CONSIDERED AS A COMPONENT OF COMMUNITY BENEFIT BECAUSE THE HOSPITAL TREATS ALL MEDICALLY NECESSARY PATIENTS, REGARDLESS OF THEIR ABILITY TO PAY AND REGARDLESS OF WHETHER THE EXPECTED REIMBURSEMENT IS ADEQUATE TO COVER ALL RELATED AND NECESSARY EXPENSES. PART III, LINE 9B: THE HOSPITAL HAS A WRITTEN BILLING AND COLLECTION POLICY AND SUCH POLICY COVERS THE PROCEDURES NECESSARY TO BILL AND COLLECT FOR THE MEDICAL SERVICES PROVIDED TO PATIENTS. PATIENTS KNOWN TO QUALIFY FOR FINANCIAL ASSISTANCE UNDER THE HOSPITAL'S CHARITY CARE POLICY (AS EVIDENCED BY A PROPERLY COMPLETED AND APPROVED CHARITY CARE APPLICATION) ARE NOT SUBJECT TO THE COLLECTION PROVISIONS OF THIS POLICY. RATHER, THEIR ACCOUNT BALANCES ARE WRITTEN-OFF FROM THE PATIENT ACCOUNTING RECORDS AS CHARITY CARE. IN INSTANCES WHERE THE HOSPITAL BELIEVES A PATIENT MAY QUALIFY FOR CHARITY CARE AND THE PATIENT DOES NOT OR CAN NOT COMPLETE THE REQUIRED CHARITY CARE APPLICATION, THE HOSPITAL MAKES REASONABLE EFFORTS TO INDEPENDENTLY SUPPORT THE APPROPRIATE WRITE-OFF OF THE PATIENT ACCOUNT BALANCES AS CHARITY CARE. IN INSTANCES WHERE REASONABLE EFFORTS ARE INSUFFICIENT OR INCONCLUSIVE TO SUPPORT THE APPROPRIATE WRITE-OFF OF THE PATIENT ACCOUNT BALANCES AS CHARITY CARE, THE PATIENT ACCOUNT BALANCES BECOME SUBJECT TO THE COLLECTION PROVISIONS OF THE HOSPITAL'S BILLING AND COLLECTION POLICY. PART VI, LINE 2: IN 2012, THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY (HCCLV) WAS FORMED TO MEASURE AND IMPROVE THE BROADLY DEFINED HEALTH OF THE LEHIGH VALLEY. CREATED BY THE NOT-FOR-PROFIT HEALTH CARE SYSTEMS OF THE LEHIGH VALLEY, HCCLV'S OBJECTIVE IS TO COOPERATIVELY DEVELOP A WORLD-CLASS COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) PROCESS AND PRODUCE A JOINT ACTION PLAN THAT WILL GALVANIZE AND COORDINATE ACTION TO PROVIDE A DRAMATIC, DEMONSTRABLE AND SUSTAINED IMPACT ON THE HEALTH OF THE CITIZENS OF THE LEHIGH VALLEY. GSRN'S PARTICIPATION IN THE JOINT CHNA IS PRIMARILY FOCUSED ON ADDRESSING THE NEEDS OF PERSONS WITH DISABILITIES AND THOSE WITH MEDICAL REHABILITATION NEEDS. THE COORDINATED CHNA PROCESS PROVIDES THE NOT-FOR-PROFIT HEALTH CARE SYSTEMS THE OPPORTUNITY TO FULFILL THE REQUIREMENT OF SECTION 9007 OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT OF 2010 TO PERFORM A CHNA EVERY THREE YEARS COMMENCING WITH A HOSPITAL'S FIRST FISCAL YEAR AFTER THE EFFECTIVE DATE OF IRC SECTION 501(R)(3). PARTICIPATION IN THE COORDINATED CHNA PROCESS ALSO ENABLES EACH HOSPITAL TO RESPOND AFFIRMATIVELY TO THE CHNA-RELATED QUESTIONS LISTED UNDER SCHEDULE H, PART V. PART VI, LINE 3: 1) GOOD SHEPHERD'S MISSION IS AS FOLLOWS:"MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION."GOOD SHEPHERD VIGOROUSLY PURSUES THEIR MISSION REGARDLESS OF A PATIENT'S ABILITY TO PAY.2) IN EACH INPATIENT ROOM, GOOD SHEPHERD PROVIDES A REFERENCE BINDER OF IMPORTANT INFORMATION TO ALL INPATIENTS. THIS BINDER SUPPLEMENTS THE PATIENT'S ADMISSIONS PACKAGE AND INCLUDES A NOTICE OF FINANCIAL AID WHICH INCLUDES THE FOLLOWING WORDING:"IF YOU HAVE LITTLE OR NO HEALTH INSURANCE TO PAY FOR THE SERVICES YOU RECEIVE FROM GOOD SHEPHERD AND WORRY THAT YOU MAY NOT BE ABLE TO PAY FOR PART OR ALL OF YOUR CARE, WE MAY BE ABLE TO HELP. GOOD SHEPHERD PROVIDES CHARITY CARE TO PATIENTS BASED ON THEIR INCOME, ASSETS AND FINANCIAL NEEDS. IN ADDITION, IF YOU DO NOT MEET THE CRITERIA TO BE ELIGIBLE FOR CHARITY CARE, WE WILL HELP YOU ARRANGE FOR AN INTEREST-FREE PAYMENT PLAN TO RESOLVE ANY BALANCES YOU OWE."3) CHARITY CARE INFORMATION IS AVAILABLE ON THE GOOD SHEPHERD WEBSITE. IN PARTICULAR, PATIENTS MAY ACCESS A COPY OF THE NOTICE OF FINANCIAL AID AND A CHARITY CARE APPLICATION.4) GOOD SHEPHERD PUBLISHES AND DISTRIBUTES A NOTICE OF PAYMENT RESPONSIBILITY TO ALL PATIENTS. THE FIRST PARAGRAPH OF THIS FORM STATES THE FOLLOWING:"GOOD SHEPHERD IS A NON-PROFIT CHARITABLE ORGANIZATION THAT PROVIDES HEALTHCARE SERVICES TO ALL MEDICALLY APPROPRIATE PATIENTS WHO SEEK CARE REGARDLESS OF THEIR FUNDS TO PAY FOR SERVICES. THIS INCLUDES THE UNINSURED AND THE UNDER INSURED."THE NOTICE GOES ON TO STATE:"IT HAS BEEN BROUGHT TO OUR ATTENTION THAT YOU POTENTIALLY LACK THE FINANCIAL RESOURCES TO PAY FOR YOUR MEDICAL CARE. YOUR ADMISSION TO GOOD SHEPHERD IS CONTINGENT UPON YOUR ASSISTANCE IN HELPING US SECURE PAYMENT OF YOUR MEDICAL BILL FOR THE CARE BEING PROVIDED TO YOU. TO ADDRESS THE PAYMENT OF YOUR BILL, WE ARE REQUESTING THAT YOU APPLY FOR MEDICAL ASSISTANCE BENEFITS THROUGH THE PENNSYLVANIA MEDICAID PROGRAM AND APPLY FOR GOOD SHEPHERD'S CHARITY CARE PROGRAM."5) EACH PATIENT BILL OR STATEMENT INCLUDES THE FOLLOWING STATEMENT:"GOOD SHEPHERD REHABILITATION HOSPITAL IS A NON-PROFIT ORGANIZATION AND OFFERS CHARITY CARE TO THOSE WHO QUALIFY. IF YOU DO NOT HAVE THE FUNDS TO PAY, PLEASE CONTACT US."6) TRANSLATION SERVICES ARE AVAILABLE TO ANY NON-ENGLISH-SPEAKING PATIENT. THESE SERVICES ALSO INCLUDE ASSISTANCE WITH CHARITY CARE ELIGIBILITY AND OTHER FINANCIAL MATTERS. 7) AS PART OF INTERNAL DEPARTMENTAL ORIENTATION AND TRAINING, ADMISSIONS, CARE MANAGEMENT AND PATIENT ACCOUNTING PERSONNEL ARE TRAINED IN GOOD SHEPHERD'S CHARITY CARE POLICIES AND PROCEDURES. PART VI, LINE 4: BASED UPON PA HEALTH CARE COST CONTAINMENT COUNCIL DATA FOR THE 2013 CALENDAR YEAR, THE HOSPITAL'S PRIMARY SERVICE AREA IS COMPRISED OF THE FOLLOWING FIVE PENNSYLVANIA COUNTIES. IN ADDITION, THE HOSPITAL'S MARKET SHARE PERCENTAGE IS INDICATED FOR EACH COUNTY WITHIN ITS PRIMARY SERVICE AREA.REHABILITATION HOSPITAL - *CARBON COUNTY 14% *LEHIGH COUNTY 71% *NORTHAMPTON COUNTY 47% *MONROE COUNTY 67% *BERKS COUNTY 4%LEHIGH, NORTHAMPTON AND BERKS COUNTIES ARE A MIX OF URBAN, SUBURBAN AND RURAL COMMUNITIES WHILE CARBON AND MONROE COUNTIES ARE PRIMARILY RURAL. THE FOLLOWING HOSPITALS ARE LOCATED WITHIN EACH OF THESE COUNTIES:CARBON COUNTY *TWO (2) NOT-FOR-PROFIT ACUTE CARE HOSPITALSLEHIGH COUNTY *FIVE (5) NOT-FOR-PROFIT ACUTE CARE HOSPITALS *TWO (2) NOT-FOR-PROFIT INPATIENT REHABILITATION HOSPITALS (THE HOSPITAL NOTE 1 LICENSE IN TWO LOCATIONS) *ONE (1) NOT-FOR-PROFIT LONG-TERM ACUTE CARE HOSPITAL (THE SPECIALTY HOSPITAL) *ONE (1) FOR-PROFIT SPECIALTY GENERAL ACUTE CARE HOSPITALNORTHAMPTON COUNTY *TWO (2) ACUTE CARE HOSPITALS - ONE (1) FOR-PROFIT ACUTE CARE HOSPITAL AND ONE (1) NOT-FOR-PROFIT ACUTE CARE HOSPITAL *ONE (1) FOR-PROFIT SPECIALTY GENERAL ACUTE CARE HOSPITALMONROE COUNTY *ONE (1) NOT-FOR-PROFIT ACUTE CARE HOSPITALBERKS COUNTY *TWO (2) NOT-FOR-PROFIT ACUTE CARE HOSPITALS *ONE (1) FOR-PROFIT INPATIENT REHABILITATION HOSPITAL *ONE (1) FOR-PROFIT SPECIALTY GENERAL ACUTE CARE HOSPITALTHESE COUNTIES HAVE THE FOLLOWING DEMOGRAPHICS AND CHARACTERISTICS:1. AVERAGE INCOME LEVEL AND POVERTY RATES (US CENSUS 2013 ESTIMATES MEDIAN HOUSEHOLD INCOME AND POPULATION PERCENTAGE BELOW THE POVERTY LEVEL)CARBON COUNTY $48,900 AND 10.6%LEHIGH COUNTY $54,923 AND 12.0% NORTHAMPTON COUNTY $60,097 AND 10.9%MONROE COUNTY $57,408 AND 13.4%BERKS COUNTY $55,170 AND 14.2%2. RATES OF UNINSURED OR UNDERINSURED PERSONS (US CENSUS 2013 ESTIMATES)CARBON COUNTY 6,288 INDIVIDUALS OR 9.8% OF THE COUNTY POPULATIONLEHIGH COUNTY 36,470 INDIVIDUALS OR 10.2% OF COUNTY POPULATIONNORTHAMPTON COUNTY 30,562 INDIVIDUALS OR 10.1% OF THE COUNTY POPULATIONMONROE COUNTY 17,747 INDIVIDUALS OR 10.3% OF THE COUNTY POPULATIONBERKS COUNTY 43,650 INDIVIDUALS OR 10.3% OF THE COUNTY POPULATION3. PERCENT OF FAMILIES WHO ARE ELIGIBLE FOR MEDICAL ASSISTANCE (PA DOH - LATEST AVAILABLE DATA) CARBON COUNTY 2011 PERCENTAGE ELIGIBLE FOR MEDICAL ASSISTANCE 15.0%LEHIGH COUNTY 2011 PERCENTAGE ELIGIBLE FOR MEDICAL ASSISTANCE 16.9%NORTHAMPTON COUNTY 2011 PERCENTAGE ELIGIBLE FOR MEDICAL ASSISTANCE 12.6%MONROE COUNTY 2011 PERCENTAGE ELIGIBLE FOR MEDICAL ASSISTANCE 16.1%BERKS COUNTY 2011 PERCENTAGE ELIGIBLE FOR MEDICAL ASSISTANCE 17.8%4. POPULATION AGE BREAKDOWN (2015 ESTIMATED PENNSYLVANIA POPULATION > AGE 65 IS 17.0%)CARBON COUNTY POPULATION > AGE 65 20.1%LEHIGH COUNTY POPULATION > AGE 65 16.3%NORTHAMPTON COUNTY POPULATION > AGE 65 17.4%MONROE COUNTY POPULATION > AGE 65 15.4%BERKS COUNTY POPULATION > AGE 65 15.9%5. PERCENTAGES OF NON-ENGLISH-SPEAKING POPULATIONSCARBON COUNTY DATA UNAVAILABLE FROM CENSUSLEHIGH COUNTY 5,745 HOUSEHOLDS WITH NO-ONE >14 PROFICIENT IN ENGLISH; 4.3% OF HHNORTHAMPTON COUNTY 2,914 HOUSEHOLDS WITH NO-ONE >14 PROFICIENT IN ENGLISH; 2.6% OF HHMONROE COUNTY 1,170 HOUSEHOLDS WITH NO-ONE >14 PROFICIENT IN ENGLISH; 2.0% OF HHBERKS COUNTY 5,671 HOUSEHOLDS WITH NO-ONE >14 PROFICIENT IN ENGLISH; 3.7% OF HH6. AREAS DESIGNATED AS FEDERALLY MEDICALLY UNDERSERVED AREAS OR POPULATIONS (JUNE, 2015)CARBON COUNTY BOROUGHS OF: LANSFORD, NESQUEHONING, AND SUMMIT HILL LEHIGH COUNTY ALLENTOWN SERVICE AREA - CT 0004.00 AND CT 0005.00NORTHAMPTON COUNTY EASTON SERVICE AREA - CT: 144.00 AND SOUTH BETHLEHEM SERVICE AREA -CT: 109-113MONROE COUNTY STROUDSBURG BOROUGH (MDC 74888) BERKS COUNTY CITY OF READING SERVICE AREAS - CT: 1, 2, 10, 11, 13, 14, 17, 19, 21, 22, 23 AND 257. SPECIAL POPULATIONS WITHIN THE AREA SERVED, INCLUDING ETHNIC AND CULTURAL GROUPSCARBON COUNTY BACHELOR'S DEGREE OR HIGHER, PCT OF PERSONS AGE 25+ 15.1% VS.27.5% IN PALEHIGH COUNTY HISPANIC OR LATINO POPULATION 20.7% VS. 6.3% IN PANORTHAMPTON COUNTY HISPANIC OR LATINO POPULATION 11.7% VS. 6.3% IN PAMONROE COUNTY HISPANIC OR LATINO POPULATION 14.2% VS. 6.3% IN PABERKS COUNTY HISPANIC OR LATINO POPULATION 18.1% VS. 6.3% IN PASOURCES: #1, 2, 4, & 7 US CENSUS STATE AND COUNTY QUICK FACTS; #3 PA DOH COUNTY HEALTH REPORTS(2013 REPORT, BUT 2011 DATA); #5 US CENSUS FACT FINDER; #6 US DEPT HEALTH & HUMAN SERVICES- HEALTH RESOURCES AND SERVICE ADMINISTRATION. PART VI, LINE 5: WITH RESPECT TO HOW THE HOSPITAL FURTHERS ITS EXEMPT PURPOSE BY PROMOTING THE HEALTH OF THE COMMUNITY, THE FOLLOWING INFORMATION IS PROVIDED:1) THE GSRN BOARD OF TRUSTEES GOVERNS ALL OF THE ENTITIES DESCRIBED IN PART I, LINE 6A (INCLUDING THE HOSPITAL). THE GSRN BOARD OF TRUSTEE MEMBERS (BOARD MEMBERS) ALL LIVE IN THE HOSPITAL'S PRIMARY SERVICE AREA AS DEFINED IN PART VI (SUPPLEMENTAL INFORMATION), LINE 4. THE VAST MAJORITY OF THE BOARD MEMBERS ARE NOT EMPLOYEES OR CONTRACTORS OF THE HOSPITAL. NONE OF THE BOARD MEMBERS ARE FAMILY MEMBERS.2) THE HOSPITAL EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS PRIMARY SERVICE AREA. ALL APPLICANTS ARE APPROVED BY THE HOSPITAL'S MEDICAL EXECUTIVE COMMITTEE.3) THE HOSPITAL PARTICIPATES IN THE MEDICARE, MEDICAID, CHAMPUS, TRICARE, OVR AND OTHER GOVERNMENT SPONSORED HEALTHCARE PROGRAMS.4) THE HOSPITAL OPERATES IN A PRIMARY SERVICE AREA, WHICH INCLUDES ONLY ONE OTHER FREE-STANDING INPATIENT REHABILITATION HOSPITAL (A FOR-PROFIT FACILITY). HOWEVER, CERTAIN OF THE ACUTE CARE HOSPITALS WITHIN THE HOSPITAL'S PRIMARY SERVICE AREA OPERATE SMALLER REHABILITATION UNITS UNDER THEIR ACUTE CARE LICENSE. 5) TO THE EXTENT THE HOSPITAL GENERATES SURPLUS OPERATING MARGINS AND/OR FREE CASH FLOW, THE AMOUNTS ARE COMPLETELY REINVESTED WITHIN THE HOSPITAL AND/OR THE OTHER AFFILIATED CORPORATIONS UNDER THE CONTROL OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN). SUCH REINVESTMENT CAN TAKE THE FORM OF INFRASTRUCTURE IMPROVEMENTS, INVESTMENTS IN MEDICAL EQUIPMENT AND TECHNOLOGY, OR OTHER INVESTMENTS INTENDED TO ENHANCE PATIENT SATISFACTION, IMPROVE THE QUALITY OF CARE, CONFORM WITH SAFETY CODES OR REGULATIONS, ETC.6) THE HOSPITAL AND OTHER AFFILIATED CORPORATIONS UNDER THE CONTROL OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN) ARE INVOLVED IN HEALTH PROFESSIONS EDUCATION, PARTICULARLY FOR NURSING AND THERAPY. PART VI, LINE 6: WITHIN THE GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD), THE GOOD SHEPHERD LONG-TERM ACUTE SERVICES, INC., D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL (THE SPECIALTY HOSPITAL), PROVIDES "CHARITY CARE AND CERTAIN OTHER COMMUNITY BENEFITS AT COST" AS REPORTED ON THEIR SCHEDULE H TO FORM 990. THESE AMOUNTS AGGREGATE $36,965 OR APPROXIMATELY 0.25% OF THE SPECIALTY HOSPITAL'S EXPENSES. THROUGH ITS GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION (SUPPIL) SUBSIDIARY, GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD), PROVIDES SUPPORTIVE INDEPENDENT HOUSING TO PERSONS WITH DISABILITIES UNDER SECTION 811 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. THESE SERVICES WERE OPERATED AT A LOSS, WHICH TOTALED $166,211 FOR THE FISCAL YEAR ENDED JUNE 30, 2014, AND WHICH WAS FUNDED BY GOOD SHEPHERD. THE LOSS WAS DETERMINED AFTER REDUCING SUPPIL RENTAL REVENUE AND OTHER INCOME BY THE DIRECTLY ASSIGNED EXPENSES INCURRED TO OPERATE THE PROGRAM.GSRN IS A 70% OWNER OF GSPP; HOWEVER, THE OPERATIONS OF GSPP ARE NOT CONSOLIDATED WITHIN THE CONSOLIDATED FINANCIAL STATEMENTS OF GOOD SHEPHERD AS GSRN IS NOT DEEMED TO HAVE CONTROL OVER GSPP. AS A RESULT, GSRN RECORDS THEIR INVESTMENT IN GSPP UNDER THE EQUITY METHOD OF ACCOUNTING WITHIN THE GSRN CONSOLIDATED FINANCIAL STATEMENTS. THROUGH ITS OWNERSHIP IN THE GSPP UNCONSOLIDATED AFFILIATE, GSRN PROVIDES THE FOLLOWING COMMUNITY BENEFITS, WHICH TOTAL TO $4,745,090:FINANCIAL ASSISTANCE AT COST $ 254,090UNREIMBURSED MEDICAID 3,233,000COMMUNITY HEALTH IMPROVEMENT SERVICES 26,000HEALTH PROFESSIONS EDUCATION 1,076,000RESEARCH 119,000COMMUNITY BUILDING ACTIVITIES 6,000SUBSIDIZED HEALTH SERVICES 2,000COMMUNITY BENEFIT OPERATIONS 29,000TOTAL $4,745,090THESE AMOUNTS ARE REPORTED ABOVE AT THEIR FULL COST ALTHOUGH GOOD SHEPHERD HAS A 70% OWNERSHIP INTEREST IN GSPP. PART VI, LINE 7 N/A X 1 1 1 1 0 0 0 0 0 1 0 JOHN KRISTEL PRESIDENT/CEO 0 272797 0 72324 0 0 0 10292 0 7539 0 362952 0 0 DANIEL C CONFALONE SVP & CFO (UNTIL 11/1/13) 0 313710 0 0 0 42137 0 11851 0 13404 0 381102 0 0 SAMUEL A MIRANDA JR SVP & CNO 0 219436 0 0 0 0 0 43328 0 9896 0 272660 0 0 RONALD PETULA SVP & CFO 0 150573 0 9284 0 0 0 5324 0 11191 0 176372 0 0 SARA T GAMMON PRESIDENT/CEO (UNTIL 7/18/13) 0 393870 0 0 0 643148 0 34535 0 2937 0 1074490 0 482490 ROSAURO DALOPE MED DIR PEDS 238157 0 0 0 0 0 10130 0 1161 0 249448 0 0 0 DEMETRICE WARD PURVIS STAFF PHYSIATRIST 174007 0 104453 0 0 0 6920 0 14987 0 300367 0 0 0 JAMES J DALEY MD MED DIR AMPUTEE PRGM 224419 0 2573 0 0 0 7559 0 13202 0 247753 0 0 0 DEBORAH KIMMEL MED DIR BRAIN INJURY 225638 0 0 0 0 0 7514 0 13308 0 246460 0 0 0 CHIRAG KALOLA PHYSICIAN PAIN PROGRAM 195824 0 19620 0 0 0 12031 0 5563 0 233038 0 0 0 PART I, LINE 1A GOOD SHEPHERD DOES NOT PAY ANY DUES ON BEHALF OF CEO, SARA GAMMON, DIRECTLY TO A SOCIAL CLUB. GOOD SHEPHERD REIMBURSES THE CEO FOR CERTAIN SOCIAL CLUB DUES RELEVANT IN PURSUING THE OVERALL MISSION OF GOOD SHEPHERD. THESE EXPENSES ARE ACCOUNTED FOR UNDER AN ACCOUNTABLE REIMBURSEMENT PLAN. THE AMOUNT OF THIS REIMBURSEMENT IS INCLUDED IN MS. GAMMON'S TAXABLE COMPENSATION. PART I, LINE 3 THE CEO IS COMPENSATED BY GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), AN AFFILIATED TAX-EXEMPT ORGANIZATION. THE HOSPITAL RELIED ON GSRN'S USE OF ALL CRITERIA SPECIFIED IN LINE 3 TO ESTABLISH COMPENSATION. PART I, LINES 4A-B DANIEL CONFALONE - $42,137 SEVERANCE AND $1,527. STIPEND PAID IN CY13. 6 WEEKS OF A 52 WEEK TOTAL. DANIEL CONAFOLNE - $224,732 SEVERANCE AND $8,144. STIPEND PAID IN FY14. 32 WEEKS OF A 52 WEEK TOTAL. SARA GAMMON - $643,148 DISTRIBUTION FROM A 457F PLAN. PART I, LINE 7 GSRN HAS A PERFORMANCE COMPENSATION PROGRAM IN PLACE WHICH IS APPROVED BY THE BOARD. CERTAIN MEMBERS OF MANAGEMENT CAN RECEIVE AN ANNUAL PERFORMANCE PAYMENT ONLY WHEN PRE-DEFINED AND PRE-APPROVED FINANCIAL AND NON-FINANCIAL GOALS ARE ACHIEVED. FOR FISCAL YEAR 2014, A PERFORMANCE PAYMENT WAS NOT ACHIEVED. THIS IS NOT GUARANTEED EACH YEAR. FORM 990, PART V, LINE 1: ACCOUNTS PAYABLE PAYMENTS ARE CONSOLIDATED UNDER A COMMON REPORTING SYSTEM. SINCE TOTALS FOR EACH VENDOR MAY CONTAIN TRANSACTIONS FROM MULTIPLE CORPORATIONS, THE NUMBER OF 1099'S FILED ON BEHALF OF THE GOOD SHEPHERD REHABILITATION HOSPITAL BY THE COMMON REPORTING AGENT CANNOT BE SEPARATELY IDENTIFIED AND DETERMINED. FORM 990, PART VI, SECTION A, LINE 7A THE SOLE CORPORATE MEMBER OF THE ORGANIZATION IS THE GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), A RELATED TAX-EXEMPT ENTITY. GSRN HAS THE ULTIMATE AUTHORITY AND RESPONSIBILITY FOR THE FOLLOWING ACTIVITIES WITH RESPECT TO THE GOOD SHEPHERD REHABILITATION HOSPITAL: AMENDMENT, APPROVAL OR REVOCATION OF BYLAWS; INSTITUTIONAL DEVELOPMENT; CORPORATE AND STRATEGIC PLANNING; FINANCIAL PLANNING AND BUDGETING; AUDIT AND FISCAL MATTERS; RESOURCE ALLOCATION; PUBLIC RELATIONS; APPOINTMENT OF TRUSTEES AND OFFICERS; AND COMPENSATION AND HUMAN RESOURCE POLICIES. FORM 990, PART VI, SECTION A, LINE 7B SEE EXPLANATION FOR FORM 990, PART VI, SECTION A, LINE 7A. FORM 990, PART VI, SECTION B, LINE 11 THE IRS FORM 990 IS PREPARED USING INFORMATION SOLICITED FROM OFFICERS, DIRECTORS, TRUSTEES, BOARD COMMITTEE MEMBERS, AND MANAGEMENT. THIS GROUP OF INDIVIDUALS ARE PROVIDED A DRAFT RETURN BEFORE THE FINAL RETURN IS FILED. QUESTIONS, COMMENTS, AND ADDITIONAL INFORMATION PROVIDED BY THIS GROUP ARE INCORPORATED INTO THE FINAL RETURN. THE FINAL RETURN IS REVIEWED AT A COMMITTEE LEVEL OF THE BOARD PRIOR TO IT BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C THERE IS A SYSTEMATIC PROCESS COORDINATED THROUGH THE GOVERNANCE COMMITTEE WHERE THE CONFLICT OF INTEREST STATEMENTS COMPLETED ANNUALLY BY BOARD MEMBERS AND SENIOR LEADERSHIP TEAM MEMBERS ARE REVIEWED BY THE GOVERNANCE COMMITTEE. WHENEVER THE COMMITTEE FEELS THE CONFLICT STATEMENT IS EITHER INCOMPLETE OR FEELS SOMETHING MAY BE MISSING, THE COMMITTEE WILL ASK MANAGEMENT TO PURSUE FURTHER DUE DILIGENCE. WHEN A BOARD MEMBER DOES HAVE AN INHERENT CONFLICT, THE TRUSTEE IS ASKED TO EITHER ABSTAIN FROM VOTING OR EXCUSE HIMSELF FROM THE ROOM DURING THE DISCUSSION AND VOTING. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN) DELEGATES RESPONSIBILITY FOR FOLLOWING ALL LEGAL AND REGULATORY REQUIREMENTS AFFECTING EXECUTIVE COMPENSATION TO THE HUMAN RESOURCES/COMPENSATION COMMITTEE OF THE BOARD (THE COMMITTEE). THE BOARD DELEGATES RESPONSIBILITY TO ENGAGE EXTERNAL RESOURCES AS NECESSARY TO THE COMMITTEE TO SUPPORT DELIBERATIONS AND DECISION MAKING RELATED TO EXECUTIVE COMPENSATION. THE COMMITTEE SELECTED AND UTILIZES AN INDEPENDENT COMPENSATION CONSULTANT, MERCER - A MARSH & MCCLENNAN COMPANY, (THE CONSULTANT) AS A RESOURCE TO ASSIST WITH DECISIONS RELATED TO EXECUTIVE COMPENSATION. ACCORDING WITH THE COMMITTEE'S ANNUAL WORK PLAN, THE CONSULTANT PRESENTED A REASONABLENESS OPINION FOR 2014 ON JUNE 5, 2014 AND FOUND THE FOLLOWING: "MERCER (US), INC. CERTIFIES THAT IT (1) IS A COMPENSATION-CONSULTING FIRM, (2) PERFORMS COMPENSATION VALUATION STUDIES OF THIS TYPE ON A REGULAR BASIS, AND (3) IS QUALIFIED TO PERFORM THE VALUATIONS OF THE TYPE OF PROPERTY OR SERVICES INVOLVED. IN OUR OPINION, THE TOTAL REMUNERATION WE HAVE REVIEWED FALLS WITHIN THE REASONABLE RANGE OF COMPETITIVE MARKET PRACTICES APPLICABLE TO LIKE POSITIONS AMONG LIKE ORGANIZATIONS UNDER LIKE CIRCUMSTANCES." THE REASONABLENESS OPINION WAS REVIEWED WITH THE COMMITTEE AT THEIR JUNE 2014 MEETING. ALL OF THE COMPENSATION MEETINGS ARE FORMALLY DOCUMENTED CONSISTENT WITH BEST GOVERNANCE PRACTICES. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE PUBLISHED TO THE ORGANIZATION'S WEBSITE AT LEAST ANNUALLY. THE GOVERNING DOCUMENTS AND POLICIES ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: PENSION LIABILITY ADJUSTMENT -533,446. NET ASSETS RELEASED ADJUSTMENT FOR SPECIAL EVENTS -488,693. FORM 990, PART XI, LINE 2C THE PROCESSES USED BY THE COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE ORGANIZATION'S FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAVE NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART VI, LINE 1: THE EXECUTIVE COMMITTEE IS COMPRISED OF THE CHAIRS OF ALL THE BOARD COMMITTEES AS WELL AS THE CHAIR AND VICE CHAIR OF THE BOARD. ALL EXECUTIVE COMMITTEE MEMBERS ARE MEMBERS OF THE BOARD OF TRUSTEES. THE EXECUTIVE COMMITTEE CAN ACT ON BEHALF OF THE BOARD OF TRUSTEES IN MOST CASES. ANY FUNDAMENTAL CHANGES WILL GO TO THE FULL BOARD. GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 232215800 OPERATES TWO SKILLED NURSING FACILITIES FOR THE SEVERELY DISABLED PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 233073390 PROVIDES INDEPENDENT LIVING APTS FOR DISABLED, LOW-INCOME ADULTS PA 501(C)(3) LINE 9 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD REHABILITATION NETWORK GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 232216041 PROVIDES MANAGEMENT SERVICES IN SUPPORT OF ITS TAX-EXEMPT AFFILIATES PA 501(C)(3) LINE 7 N/A 0 PHILADELPHIA POST-ACUTE PARTNERS LLC 1800 LOMBARD STREET PHILADELPHIA PA 19146 208283421 OPERATES INPATIENT REHAB HOSP, ACUTE CARE HOSP & 8 OUTPATIENT FACILITIES PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 0 THE ALLENTOWN SPECIALTY HOSPITAL INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 233009874 PROVIDES INPATIENT SVCS THROUGH OPERATION OF A LONG-TERM ACUTE CARE HOSP PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD RECIPROCAL RISK RENTENTION GROUP 7301 RIVERS AVENUE SUITE 230 NORTH CHARLESTON SC 29406 204065112 RISK RETENTION GROUP SC N/A C 0 0 0 1 0 0 0 0 0 1 0 0 0 1 0 1 1 1 0 1