2015-11-16T16:17:34-06:00 2014-12-31 BKD LLP 312 WALNUT STREET SUITE 3000 CINCINNATI OH 45202 990 2014-01-01 350892672 REID HOSPITAL & HEALTH CARE SERVICES INC % SARAH GUSTAFSON REID 7659833037 1100 REID PARKWAY RICHMOND IN 473741908 CHRIS KNIGHT CFO 7659833037 2015-11-04 true Aaron Hershberger P00961884 5136218300 2014 2016-02-25 16:41:14Z CRAIG KINYON 1100 REID PARKWAY RICHMOND IN 47374 388105806 false X WWW.REIDHEALTH.ORG X 1902 IN OUR MISSION IS TO SERVE PEOPLE BY ENHANCING GENERAL HEALTH, WELL-BEING & QUALITY OF LIFE BY PROVIDING QUALITY HEALTH CARE & EDUCATION THAT WILL MEET CURRENT & FUTURE NEEDS. 18 11 2124 300 2741719 -354682 700804 606452 325322390 358222175 18724171 19046026 12418948 12870384 357166313 390745037 197228 325817 0 0 114376152 117718005 0 0 0 196477661 207259717 311051041 325303539 46115272 65441498 758215200 822655033 233241254 249167659 524973946 573487374 X WHOLENESS IN BODY, MIND, AND SPIRIT IS BASIC TO FULFILLMENT OF HUMAN POTENTIAL. REID HOSPITAL & HEALTH CARE SERVICES ("REID HOSPITAL") AND ITS PEOPLE WORK WITH OTHERS TO ENHANCE WHOLENESS FOR ALL THOSE WE SERVE. THIS MISSION IS CARRIED OUT BY SERVING THE PEOPLE OF A MULTI-COUNTY SERVICE AREA IN REFERENCE TO THEIR CURRENT AND FUTURE NEEDS FOR HEALTH CARE SERVICES. OUR MAJOR FUNCTIONS ARE TO: 1.) PROVIDE A BROADLY DEFINED RANGE OF HEALTH CARE SERVICES THAT: A.) ADDRESS COMMUNITY AND SERVICE AREA NEEDS, B.) CAN BE OFFERED IN A HIGH QUALITY MANNER, AND C.) PROVIDE COST-EFFECTIVE VALUE; 2.) SUPPORT, ALONE OR COLLABORATIVELY, EDUCATIONAL EFFORTS DIRECTED TOWARD: A.) ENTRY LEVEL PREPARATION OF HEALTH CARE WORKERS, B.) LIFE-LONG LEARNING FOR THOSE SERVING IN HEALTH CARE, AND C.) ENHANCE HEALTHY LIFESTYLES AND CHOICES IN THE PEOPLE WE SERVE; AND 3.) INITIATE, PARTICIPATE, OR COOPERATIVELY SUPPORT COMMUNITY EFFORTS THAT ENHANCE THE GENERAL HEALTH STATUS, WELL-BEING AND TOTAL QUALITY OF LIFE IN O false false 300640736 325817 358222175 THE MISSION OF REID HOSPITAL IS TO SERVE THE PEOPLE OF A MULTI-COUNTY SERVICE AREA IN REFERENCE TO THEIR CURRENT AND FUTURE NEEDS FOR HEALTH CARE SERVICES. IN FURTHERANCE OF THIS MISSION, REID HOSPITAL PROVIDES QUALITY HEALTHCARE REGARDLESS OF RACE, CREED, SEX, NATIONAL ORIGIN, AGE, OR ABILITY TO PAY. DURING 2014, REID HOSPITAL ADMITTED APPROXIMATELY 11,500 PATIENTS FOR IN-PATIENT SERVICES REPRESENTING 54,700 PATIENT DAYS; 656 BIRTHS REPRESENTING 1,900 NEWBORN PATIENT DAYS AND PERFORMED APPROXIMATELY 2,084 IN-PATIENT SURGERIES. IN ADDITION, REID HOSPITAL RECEIVED OVER 311,000 OUT-PATIENT ENCOUNTERS FOR NON-EMERGENCY DIAGNOSTIC AND TREATMENT SERVICES INCLUDING 10,203 AMBULATORY SURGERIES AND 11,300 HOME HEALTH ENCOUNTERS. REID HOSPITAL OFFERS EMERGENCY SERVICES 24 HOURS PER DAY, 365 DAYS EACH YEAR. IN 2014, OVER 49,577 PATIENTS WERE TREATED THROUGH EMERGENCY SERVICES. IN KEEPING WITH REID HOSPITAL'S COMMITMENT TO SERVE ALL MEMBERS OF OUR MULTI-COUNTY SERVICE AREA, REID HOSPITAL PROVIDES HEALTHCARE TO THE ELDERLY AND DISABLED COVERED UNDER MEDICARE AND MEDICAID PROGRAMS AT OR BELOW COST. IN ADDITION, REID HOSPITAL HAS ESTABLISHED A FINANCIAL ASSISTANCE POLICY FOR THE POOR WHO DO NOT HAVE THE MEANS TO PAY FOR SERVICES. FOR 2014, THE TOTAL VALUE OF UNCOMPENSATED CARE AT COST FOR THE ELDERLY AND DISABLED WAS $21.9 MILLION AND FINANCIAL ASSISTANCE FOR THE POOR WAS $9.3 MILLION. TO ENSURE MEMBERS OF OUR SERVICE COMMUNITY HAVE ADEQUATE ACCESS AND RESOURCES AVAILABLE TO MEET THEIR HEALTHCARE NEEDS, REID HOSPITAL HAS UNDERTAKEN A DELIBERATE PHYSICIAN RECRUITMENT PROGRAM CONSISTENT WITH IRS GUIDANCE. THIS PROGRAM PROVIDES ASSURANCE THAT OUR SERVICE COMMUNITY HAS ADEQUATE AND QUALIFIED PHYSICIAN RESOURCES COVERING A VARIETY OF SPECIALTY AREAS. THE COST OF FUNDING THIS RECRUITMENT EFFORT WAS $517,306 FOR 2014. IN ADDITION, REID HOSPITAL IS COMMITTED TO INITIATING, PARTICIPATING IN, OR COOPERATIVELY SUPPORTING COMMUNITY EFFORTS THAT ENHANCE THE GENERAL HEALTH STATUS, WELL-BEING AND TOTAL QUALITY OF LIFE IN OUR SERVICE COMMUNITY. 300640736 true true false true false false false false false true true true false true true true false true false false false false false false false false true true true false true true false false false false false false false true true true false false false false true true false false false true 244 0 true 2124 true true true false false false false false false false false false X 18 11 true false false false false false false true true false false true true true true true true true true true false IN X SARAH GUSTAFSON 7659833037 1100 REID PARKWAY RICHMOND IN 47374 CRAIG KINYON PRESIDENT & CEO - BOARD MEMBER 37.5 12.5 X X 646351 0 70498 PAUL LINGLE BOARD MEMBER-1ST V. CHAIR 2.0 0.0 X 0 0 0 GREG JANZOW BOARD MEMBER 2.0 0.0 X 0 0 0 JOHN FORD BOARD MEMBER-CHAIR 2.0 0.0 X 0 0 0 BRAD BARRETT MD BOARD MEMBER 2.0 48.0 X 0 386200 40610 ALAN SPEARS BOARD MEMBER 2.0 0.0 X 0 0 0 KAREN CLARK BOARD MEMBER 2.0 0.0 X 0 0 0 TOM HILKERT BOARD MEMBER 2.0 0.0 X 0 0 0 JOHN MCBRIDE BOARD MEMBER-TREASURER 2.0 0.0 X 0 0 0 EDITH PERKINS BOARD MEMBER 2.0 0.0 X 0 0 0 WILLIAM QUIGG BOARD MEMBER 2.0 0.0 X 0 0 0 ALLAN ROSAR BOARD MEMBER-2ND V. CHAIR 2.0 0.0 X 0 0 0 BONITA WASHINGTON-LACY BOARD MEMBER-SECRETARY 2.0 0.0 X 0 0 0 PHILLIP SCOTT DO BOARD MEMBER 2.0 48.0 X 0 258104 41444 PATRICK ANDERSON MD BOARD MEMBER 2.0 48.0 X 0 423569 25448 ROHIT BAWA MD BOARD MEMBER 2.0 48.0 X 0 679506 41747 ALEASIA STEWART BOARD MEMBER 2.0 0.0 X 0 0 0 MARK HARRINGTON BOARD MEMBER 2.0 0.0 X 0 0 0 BRENDA CARTWRIGHT VP CNO 50.0 0.0 X 314132 0 44828 SCOTT RAUCH VICE PRESIDENT 50.0 0.0 X 266882 0 46128 JENNIFER EHLERS VP CQO 50.0 0.0 X 237356 0 28954 ANGIE DICKMAN VICE PRESIDENT 50.0 0.0 X 207638 0 39080 RANDALL KIRK VP/FOUNDATION PRESIDENT 50.0 0.0 X 204015 0 49717 CHRISTOPHER KNIGHT CFO 50.0 0.0 X 156950 0 35445 THOMAS HUTH MD VP MEDICAL AFFAIRS 50.0 0.0 X 350713 0 55841 BRADLEY HESTER PHARMACY DIRECTOR 50.0 0.0 X 164918 0 35219 RODNEY HOLDERMAN PHARMACIST 50.0 0.0 X 167375 0 18206 TIMOTHY LOVE INFORMATION SERVICES DIRECTOR 50.0 0.0 X 143304 0 29388 LUANNE CHRISTOFARO EXECUTIVE DIRECTOR OF NURSING 50.0 0.0 X 148692 0 25822 DEBORAH ECKHOFF DIRECTOR OF CLINICAL INFORMATI 50.0 0.0 X 137991 0 24652 3146317 1747379 653027 49 false true false HD SMITH WHOLESALE DRUG 3063 FIAT AVENUE SPRINGFIELD IL 62703 PHARMACY SUPPLIER 22369065 SIEMENS MEDICAL SOLUTIONS 40 LIBERTY BOULEVARD MALVERN PA 19355 INFORMATION SYSTEMS 7686571 SHOOK CONSTRUCTION 4977 NORTHCUTT PLACE DAYTON OH 45414 CONSTRUCTION 7201146 BIOMET BRACING 56 EAST BELL DRIVE WARSAW IN 46581 MEDICAL SUPPLIER 3179763 ST JUDE MEDICAL INC ONE ST JUDE MEDICAL DRIVE ST PAUL MN 55117 MEDICAL SUPPLIER 2336429 50 606452 606452 Net Patient Care Revenue 621990 358222175 358222175 358222175 21685257 21685257 0 0 2826456 2826456 0 2826456 2826456 -2633019 -6212 2633019 6212 -2639231 -2639231 0 0 0 MISCELLANEOUS 621110 9409568 2107359 7302209 Engineering 541900 200151 200151 Housekeeping 812900 434209 434209 10043928 390745037 358222175 2741719 29174691 325817 325817 0 0 0 2567675 2346598 221077 0 87797194 80237856 7559338 5311004 4853727 457277 16474569 15056109 1418460 5567563 5088196 479367 0 657380 600780 56600 205122 187461 17661 0 0 0 50973531 46584710 4388821 2563876 2343126 220750 7025301 6420423 604878 0 0 6562148 5997147 565001 479977 438651 41326 0 310326 283607 26719 7723856 7058832 665024 0 25438747 23248471 2190276 2069331 1891162 178169 Supplies 54400566 49716677 4683889 Bad Debts 38533985 38533985 Maintenance Contracts 8732610 7980732 751878 Dues, Licenses, and Fees 1195666 1092719 102947 387295 353950 33345 325303539 300640736 24662803 0 8762 9035 9831907 10628606 0 0 183559058 249542885 13713 0 0 0 25482322 24845502 3189303 7268351 3842207 4350791 460207649 218120818 242878217 242086831 135687667 140931395 112823046 100420829 0 0 0 0 40898998 42570808 758215200 822655033 25862488 27832317 0 0 0 0 173735000 170480000 0 0 0 0 0 0 0 0 33643766 50855342 233241254 249167659 X 497638823 544740672 27169330 28580909 165793 165793 524973946 573487374 758215200 822655033 X 65441498 -11033131 -5894939 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false true 600 false true 12461 13061 false false SCHEDULE C, PART II-B, LINE 1I OTHER LOBBYING ACTIVITIES REID HOSPITAL & HEALTH CARE SERVICES IS A MEMBER OF CERTAIN TRADE ORGANIZATIONS WHICH ENGAGE IN LOBBYING ACTIVITIES. THIS AMOUNT REFLECTS THE PORTION OF THE DUES USED FOR SUCH ACTIVITIES. SCHEDULE C, PART II-B, LINE 1B LOBBYING ACTIVITIES BY PAID STAFF DURING THE YEAR, SEVERAL LETTERS WERE WRITTEN TO STATE REPRESENTATIVES EXPLAINING THE IMPACT OF SPECIFIC LEGISLATION TO REID HOSPITAL. THE ESTIMATED AMOUNT EXPENDED BY THE ORGANIZATION WAS $600. THIS AMOUNT REFLECTS AN ESTIMATE OF LABOR COST FOR THIS ACTIVITY. 165793 165793 165793 165793 159990 5803 165793 159990 159990 29990 130000 159990 1.00000 false true true 13405965 13405965 130867918 38736980 92130938 7070486 3006735 4063751 241854698 153481292 88373406 67008582 22895811 44112771 242086831 AURORA LMTD PARTNERSHIP 15839142 F SAVILLE ROW 4656839 F MORGAN STANLEY SMITH BARNEY 64297599 F GOELZER INVESTMENT FUND 7420326 F DEBT RESERVE FUND 8206923 F 100420829 Deferred Financing Costs 4625591 Interest in Foundation 28746702 Other Assets 9198515 42570808 0 Pension and Benefits 25525950 Derivative Liability 20254518 Est Third Party Settlements 5074874 50855342 X SCHEDULE D, PART V, LINE 4 USE OF ENDOWMENT FUNDS AT DECEMBER 31, 2014 AND 2013, THE REID HOSPITAL AND HEALTH CARE SERVICES FOUNDATION HAD PERMANENTLY RESTRICTED NET ASSETS OF $165,793 AND $165,793, RESPECTIVELY. THE INCOME FROM THIS FUND IS EXPENDABLE TO SUPPORT THE ACUTE REHABILITATION UNIT AND THE SPEECH, OUTPATIENT, AND PHYSICAL THERAPY SERVICES FOR REID HOSPITAL AND HEALTH CARE SERVICES. THESE NET ASSETS HAVE BEEN CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OF DONOR-IMPOSED RESTRICTIONS IN ACCORDANCE WITH ACCOUNTING STANDARDS AND THE PROVISIONS OF THE STATE OF INDIANA ENACTED VERSION OF THE UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT. SCHEDULE D, PART X, LINE 2 FIN 48 (ASC 740) FOOTNOTE REID HOSPITAL AND REID PHYSICIAN ASSOCIATES HAVE BEEN RECOGNIZED AS EXEMPT FROM INCOME TAXES UNDER SECTION 501 OF THE INTERNAL REVENUE CODE AND A SIMILAR PROVISION OF STATE LAW. HOWEVER, REID HOSPITAL IS SUBJECT TO FEDERAL INCOME TAX ON ANY UNRELATED BUSINESS TAXABLE INCOME. REID HOSPITAL AND ITS CONTROLLED SUBSIDIARIES FILE TAX RETURNS IN THE U.S. FEDERAL JURISDICTION. WITH A FEW EXCEPTIONS, REID HOSPITAL AND ITS CONTROLLED SUBSIDIARIES ARE NO LONGER SUBJECT TO U.S. FEDERAL EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2011. true true X true X true X true true false true true 20605370 20605370 0.07190 30187060 15680424 14506636 0.05060 50792430 15680424 35112006 0.12250 781169 104021 677148 0.00240 259620 49367 210253 0.00070 794300 794300 0.00280 1835089 153388 1681701 0.00590 52627519 15833812 36793707 0.12840 9444 9444 19202 19202 28646 28646 true 38533985 1382611 87202565 92035379 -4832814 X true true ROSE LLC OUTPATIENT SURGICAL SERVICES 0.55000 0.06000 0.45000 REID MOB LLC REAL ESTATE OWNERSHIP 0.65000 0.02000 0.35000 REID MSO LLC MGMT SERVICES 0.11000 0.08000 0.89000 1 1 REID HOSPITAL & HEALTH CARE SERVICES 1100 REID PARKWAY RICHMOND IN 47374 WWW.REIDHEALTH.ORG 005044 X X X OUTPATIENT SURGERY CENTER REID HOSPITAL & HEALTH CARE SERVICES 1 false false true X X X X X X X X X 13 true false false true X WWW.REIDHEALTH.ORG X true 13 true WWW.REIDHEALTH.ORG false false true X 150. 250. X X X X X true true X X X X true X X X X X X true X false X X X X true X false false SCHEDULE H, PART V, SECTION B, LINE 5 CHNA COMMUNITY INPUT A PRECISE AND CAREFULLY EXECUTED METHODOLOGY IS CRITICAL IN ASSERTING THE VALIDITY OF THE RESULTS GATHERED IN A CHNA. TO ENSURE THE BEST REPRESENTATION OF THE POPULATION SURVEYED, A TELEPHONE INTERVIEW METHODLOGY,ONE THAT INCORPORATED BOTH LANDLINE AND CELL PHONE INTERVIEWS,WAS EMPLOYED. THE SAMPLE DESIGN USED FOR THIS EFFORT CONSISTED OF A RANDOM SAMPLE OF 750 INDIVIDUALS AGE 18 OR OLDER IN THE REID SERVICE AREA. ONCE INTERVIEWS WERE COMPLETED, THESE WERE WEIGHTED IN PROPORTION TO THE ACTUAL POPULATION DISTRIBUTION SO AS TO APPROPRIATELY REPRESENT THE REID SERVICES AREA AS A WHOLE. AS PART OF THE CHNA TWO FOCUS GROUPS WERE HELD. PARTICIPANTS INCLUDED 21 LOCAL KEY INFORMANTS: PHYSICIANS, A PUBLIC HEALTH REPRESENTATIVE, OTHER HEALTH PROFESSIONALS, SOCIAL SERVICE PROVIDERS, BUSINESS LEADERS AND OTHER COMMUNITY LEADERS. POTENTIAL PARTICIPANTS WERE CHOSEN BECAUSE OF THEIR ABILITY TO IDENTIFY PRIMARY CONCERNS OF THE POPULATIONS WITH WHOM THEY WORK, AS WELL AS OF THE COMMUNITY OVERALL. SCHEDULE H, PART V, LINE 11 COMMUNITY HEALTH NEEDS THE FOLLOWING COMMUNITY HEALTH NEEDS, IDENTIFIED IN REID HOSPITAL'S MOST RECENTLY CONDUCTED COMMUNITY HEALTH NEEDS ASSESSMENT, WERE ADDRESSED IN AN IMPLEMENTATION STRATEGY TO ADDRESS EACH COMMUNITY HEALTH NEED IDENTIFIED AND EXECUTING THE STRATEGY. A COMMUNITY BENEFIT SECTION IS INCLUDED WITHIN OPERATIONAL PLANS AND MONITORED BY THE CONTINUUM OF CARE COMMITTEE. PROVISIONS ARE BUDGETED EACH YEAR FOR SERVICES THAT ADDRESS THE IDENTIFIED NEEDS. THE FOLLOWING COMMUNITY HEALTH NEEDS REPRESENT RECOMMENDED AREAS OF INTERVENTION, BASED ON THE FINDINGS OF THE COMMUNITY HEALTH NEEDS ASSESSMENT (PRESENTED ALPHABETICALLY, RATHER THAN IN ORDER OF IMPORTANCE): ACCESS TO HEALTH SERVICES CANCER CHRONIC DISABLING CONDITIONS CHRONIC KIDNEY DISEASE DEMENTIAS, INCLUDING ALZHEIMER'S DISEASE DIABETES HEART DISEASE & STROKE INJURY & VIOLENCE PREVENTION MATERNAL/INFANT HEALTH & FAMILY PLANNING MENTAL HEALTH & MENTAL DISORDERS NUTRITION, PHYSICAL ACTIVITY & WEIGHT RESPIRATORY DISEASES SUBSTANCE ABUSE THE FOLLOWING COMMUNITY HEALTH NEEDS, IDENTIFIED IN REID HOSPITAL'S MOST RECENTLY CONDUCTED COMMUNITY HEALTH NEEDS ASSESSMENT, WERE NOT ADDRESSED IN ITS IMPLEMENTATION PLAN. INJURY AND VIOLENCE PREVENTION COMPONENTS OF THIS NEED INCLUDED DEATH RELATED TO UNINTENTIONAL INJURY OR MOTOR VEHICLE ACCIDENTS AND PREVALENCE OF FIREARMS IN HOMES. THIS NEED IS CURRENTLY BEING ADDRESSED BY OTHER COMMUNITY AGENCIES THROUGH SAFETY AWARENESS CAMPAIGNS. IT WAS NOT FELT THAT REID HOSPITAL WOULD BE ABLE TO EFFECTIVELY IMPACT THIS NEED THROUGH HOSPITAL EFFORTS, NOR THAT THE ORGANIZATION HAD THE EXPERTISE TO ADDRESS THE ISSUES. FOR THIS REASON, THERE WAS LITTLE CONSIDERATION FOR THIS IDENTIFIED NEED IN THE COMMUNITY BENEFIT PLAN. RESPIRATORY DISEASES THIS SPECIFIC NEED WAS RANKED AS THE LOWEST PRIORITY BY THE CONTINUUM OF CARE SUB-COMMITTEE. THIS NEED IS COMPRISED OF DEATHS RELATED TO CHRONIC LOWER RESPIRATORY DISEASE AND THE PREVALENCE OF CHRONIC LUNG DISEASE. DUE TO THE HIGH IMPACT OF SMOKING ON THIS PROBLEM, IT WAS FELT BEST TO FOCUS EFFORTS ON WELLNESS PROMOTION THROUGH SMOKING CESSATION EDUCATION INCLUDED IN THE COMMUNITY BENEFIT PLAN. SCHEDULE H, PART V, SECTION B, LINE 22D DETERMINATION OF AMOUNT TO CHARGE FAP-ELIGIBLE INDIVIDUALS ALL PATIENTS ARE CHARGED THE SAME AMOUNT FOR EACH SERVICE REGARDLESS OF THEIR INSURANCE STATUS. REID HOSPITAL MAKES NO DISTINCTION IN PRICING AT THE CHARGE LEVEL WHETHER A PATIENT IS ELIGIBLE FOR FINANCIAL ASSISTANCE, HAS MEDICARE, OR IS COVERED UNDER A COMMERCIAL PLAN. ONCE THE TOTAL CHARGES HAVE BEEN DETERMINED, A FAP-ELIGIBLE PATIENT IS SCREENED FOR COVERAGE BASED ON INCOME AND HOUSEHOLD SIZE USING IRS GUIDELINES FOR DETERMINING WHETHER A HOUSEHOLD MEMBER CAN BE CONSIDERED A DEPENDENT. INCOME AND HOUSEHOLD SIZE RELATIVE TO TOTAL CHARGES OWED DETERMINES THE AMOUNT THE FAP-ELIGIBLE PATIENT WILL OWE, UP TO A 100% WRITE OFF OF THE BILL. SCHEDULE H, PART III, SECTION A, LINE 2 BAD DEBT EXPENSE THE AMOUNT REPORTED ON PART III, LINE 2 IS CALCULATED BASED ON TOTAL BAD DEBT EXPENSE BASED ON CHARGES. SCHEDULE H, PART III, SECTION A, LINE 3 BAD DEBT EXPENSE AN ALLOCATION PERCENTAGE WAS CALCULATED USING FY2013 BAD DEBT EXPENSE AND BAD DEBT ATTRIBUTED TO PATIENTS UNDER THE FINANCIAL ASSISTANCE POLICY. THIS PERCENTAGE WAS THEN APPLIED TO FY2014 BAD DEBT EXPENSE TO CALCULATE THE AMOUNT REPORTED ON LINE 3. SCHEDULE H, PART III, SECTION A, LINE 4 BAD DEBT EXPENSE REID HOSPITAL ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF ACCOUNTS RECEIVABLE, THE HOSPITAL ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYER SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYER SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE HOSPITAL ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY (FOR EXAMPLE, FOR EXPECTED UNCOLLECTIBLE DEDUCTIBLES AND COPAYMENTS ON ACCOUNTS FOR WHICH THE THIRD-PARTY PAYER HAS NOT YET PAID, OR FOR PAYERS WHO ARE KNOWN TO BE HAVING FINANCIAL DIFFICULTIES THAT MAKE THE REALIZATION OF AMOUNTS DUE UNLIKELY). FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS (WHICH INCLUDES BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL), THE HOSPITAL 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 STANDARD RATES (OR THE DISCOUNTED RATES IF NEGOTIATED OR PROVIDED BY POLICY) AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. SCHEDULE H, PART III, SECTION B, LINE 8 MEDICARE REID HOSPITAL BELIEVES THAT ANY MEDICARE SHORTFALL SHOULD BE CONSIDERED A COMMUNITY BENEFIT BECAUSE OUR MISSION IS TO PROMOTE QUALITY HEALTHCARE AND HEALTH EDUCATION IN OUR SERVICE COMMUNITY REGARDLESS OF ONE'S ABILITY TO PAY. WE DO NOT LIMIT THE CARE AVAILABLE TO ANY PATIENTS, INCLUDING THOSE COVERED UNDER THE MEDICARE PROGRAM. WE ARE RELIEVING A GOVERNMENT BURDEN BY PROVIDING CARE TO MEDICARE PATIENTS BELOW COST. TAX-EXEMPT HOSPITALS ARE EXPECTED TO PARTICIPATE IN THE MEDICARE PROGRAM. SCHEDULE H, PART III, SECTION B, LINE 9B COLLECTION PRACTICES ANY INDICATION OF A PATIENTS INABILITY TO PAY FOR SERVICES IS TREATED AS A REQUEST FOR CHARITY CARE. THIS REQUEST CAN BE MADE BY, OR ON BEHALF OF AN INDIVIDUAL SEEKING SERVICE. REID HOSPITAL'S COLLECTION POLICIES ARE THE SAME FOR ALL PATIENTS. PATIENTS ARE SCREENED FOR ELIGIBILITY FOR FINANCIAL ASSISTANCE BEFORE ANY COLLECTION PROCEDURES BEGIN. IF AT ANY POINT IN THE COLLECTION PROCESS DOCUMENTATION IS RECEIVED THAT INDICATES THE PATIENT IS POTENTIALLY ELIGIBLE FOR FINANCIAL ASSISTANCE BUT HAS NOT APPLIED FOR IT, THE ACCOUNT IS REFERRED BACK TO A COUNSELOR FOR ASSISTANCE AND REVIEW. SCHEDULE H, PART VI, LINE 2 NEEDS ASSESSMENT A NEEDS ASSESSMENT IS CONDUCTED EVERY 3 YEARS IN ACCORDANCE WITH STATE AND FEDERAL REQUIREMENTS. THE LAST NEEDS ASSESSMENT OF REID HOSPITAL'S SERVICE AREA WAS CONDUCTED IN 2013. THE RESULTS OF THE NEEDS ASSESSMENT ARE POSTED ON REID HOSPITAL'S WEBSITE SO THAT COMMUNITY MEMBERS AND ORGANIZATIONS MAY USE THE INFORMATION AS NEEDED. FORMAL AND INFORMAL MEETINGS ARE HELD WITH COMMUNITY STAKEHOLDERS TO SEEK THEIR INPUT ON THE RESULTS. PROFESSIONAL RESEARCH CONSULTANTS CONDUCTED THE NEEDS ASSESSMENT AND PROVIDED A COMPARISON TO THE 2010 NEEDS ASSESSMENT RESULTS. THE NEXT NEEDS ASSESSMENT WILL BE CONDUCTED IN 2016 AND WILL COMPLY WITH ALL REQUIREMENTS FOR COMMUNITY HEALTH NEEDS ASSESSMENTS UNDER THE AFFORDABLE CARE ACT AND CORRESPONDING REGULATIONS. IN ADDITION, ALL INDEPENDENT AND NON-INDEPENDENT VOTING MEMBERS OF THE BOARD ARE REQUIRED TO RESIDE WITHIN REID HOSPITAL'S SERVICE AREA. THE DISTINCTION IS IMPORTANT BECAUSE THEY ARE INVOLVED AND BETTER AWARE OF THE HEALTH NEEDS OF THE COMMUNITY REID HOSPITAL SERVES. SCHEDULE H, PART VI, LINE 3 PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE REID HOSPITAL STAFF INFORMS ALL PATIENTS, AS THEY ARE ADMITTED, OF THE VARIOUS ASSISTANCE PROGRAMS AVAILABLE TO HELP THEM PAY THEIR BILL. WE HAVE COMMUNITY EDUCATION INITIATIVES (THAT INCLUDE THE DISTRIBUTION OF FLYERS AND CARDS IN PUBLIC PLACES, INSERTS IN BILLS, AND FLYERS FOR CHURCHES THAT PROMOTE THE PATIENT ADVOCATE PROGRAM) ASKING PEOPLE TO CONTACT A PATIENT ADVOCATE IF THEY, OR A LOVED ONE, DOES NOT HAVE HEALTH COVERAGE. REID USES TARGETED ADVERTISEMENTS IN AN EFFORT TO REACH PEOPLE BEFORE THEY ARE IN NEED OF CARE AND TO CONNECT THEM WITH OUR PATIENT ADVOCATES TO HELP DETERMINE ELIGIBILITY FOR INSURANCE COVERAGE. WE HAVE CONTRACTED WITH A THIRD PARTY VENDOR THAT SPECIALIZES IN HELPING PEOPLE WITH THE APPLICATION PROCESS FOR VARIOUS PROGRAMS. IN ADDITION, WE PROVIDE INFORMATION ABOUT FINANCIAL ASSISTANCE IN OUR MONTHLY STATEMENTS. WE CURRENTLY PROMOTE FREE SCREENING SERVICES DIRECTED TO SELF PAY PATIENTS. THOSE WHO RESPOND MAKE AN APPOINTMENT WITH OUR PATIENT ADVOCATES AND THEN RECEIVE THEIR FREE WELLNESS LAB TEST. SCHEDULE H, PART VI, LINE 4 COMMUNITY INFORMATION REID HOSPITAL SERVES FIVE (5) COUNTIES IN INDIANA (WAYNE, UNION, RANDOLPH, HENRY, AND FAYETTE) AND TWO (2) COUNTIES IN OHIO (PREBLE AND DARKE). SINCE 2005, THE POPULATION GROWTH OF THE SERVICE AREA HAS REMAINED FLAT. HOWEVER, SENIOR CITIZENS 65 AND OLDER WILL REPRESENT A LARGER PERCENTAGE OF THE POPULATION ACROSS THE SERVICE AREA. ACCORDING TO THE 2013 COMMUNITY HEALTH NEEDS ASSESSMENT (NEEDS ASSESSMENT), 34.8% OF INDIVIDUALS WITHIN REID HOSPITAL'S SERVICE AREA EARN LESS THAN 200% OF THE FEDERAL POVERTY LEVEL. THE NEEDS ASSESSMENT ALSO INDICATES THAT ACCESS TO HEALTH CARE IS BETTER IN REID HOSPITAL'S SERVICE AREA THAN FOUND NATIONALLY FOR SEVERAL TESTED BARRIERS: 1.) DIFFICULTY FINDING A PHYSICIAN, 2.) APPOINTMENT AVAILABILITY, 3.) CONVENIENCE OF OFFICE HOURS, AND 4.) TRANSPORTATION. WITHIN REID HOSPITAL'S SERVICE AREA, THE NUMBER OF ADULTS AGED 18-64 WITHOUT HEALTH INSURANCE COVERAGE HAS INCREASED SIGNIFICANTLY OVER THE PAST DECADE. THE ECONOMY HAS AFFECTED THE LOCAL BUSINESS CLIMATE AND MANY ADULTS HAVE EITHER LOST INSURANCE ALTOGETHER OR HAVE SEEN A DECREASE IN BENEFITS. SCHEDULE H, PART VI, LINE 5 PROMOTION OF COMMUNITY HEALTH REID HOSPITAL SERVES AS A CORNERSTONE FOR THE COMMUNITY BY PROVIDING MANY AREAS OF OUTREACH AND COMMUNITY SERVICE. EXEMPT EMPLOYEES SERVE ON LOCAL BOARDS SUCH AS THE BOYS & GIRLS CLUB, GIRLS, INC., UNITED WAY, ACHIEVA RESOURCES, THE CHAMBER OF COMMERCE, COMMUNITIES IN SCHOOLS, BIRTH TO FIVE, HEADSTART HEALTH & EDUCATION ADVISORY COUNCIL AND MANY OTHER CIVIC ORGANIZATIONS. A COMMUNITY BENEFIT PAYROLL BUDGET IS ESTABLISHED EACH YEAR TO ALLOW HOURLY EMPLOYEES TO SERVE IN THE COMMUNITY (DURING WORKING HOURS) ON PROJECTS SUCH AS HABITAT FOR HUMANITY. AS OF 2014, A TOTAL OF 225 AED'S (AUTOMATED EXTERNAL DEFIBRILLATORS) WERE PLACED IN LOCAL SCHOOLS, NOT FOR PROFIT ORGANIZATIONS, FIRE AND POLICE, AND EMS SERVICES, TO SUPPORT THE HEALTH OF THE COMMUNITY. REID HOSPITAL ALSO PROVIDES ASSISTANCE TO THESE PUBLIC DEPARTMENTS WITH CERTIFICATION AND RENEWAL OF REQUIRED AMERICAN HEART ASSOCIATION COURSES SUCH AS BLS (BASIC LIFE SUPPORT), ACLS (ADVANCED CARDIAC LIFE SUPPORT), AND PALS (PEDIATRIC ADVANCED LIFE SUPPORT). SUSTAINING A WELL-EDUCATED HEALTH CARE WORK FORCE IS PART OF THE OUTREACH OF REID HOSPITAL. MEDICAL GRAND ROUNDS ARE OFFERED WEEKLY AND ARE OPEN TO ALL PHYSICIANS IN THE COMMUNITY. EACH YEAR REID HOSPITAL, IVY TECH COMMUNITY COLLEGE AND INDIANA UNIVERSITY-EAST CAMPUS COLLABORATE ON A HEALTH CAREER CAMP WHICH PROVIDES HIGH SCHOOL STUDENTS AN OPPORTUNITY TO PARTICIPATE IN NURSING AND ALLIED HEALTH ACTIVITIES. STUDENTS FROM THE 7-COUNTY SERVICE AREA ARE INVITED TO ATTEND. THERE ARE SOCIAL DETERMINANTS OF HEALTH AND READING IS ONE OF THOSE ELEMENTS REID HOSPITAL HAS CHOSEN TO SUPPORT. EACH YEAR THE THIRD GRADE READING ACADEMY WORKS WITH CHILDREN WHO ARE NOT READING AT GRADE LEVEL AND SPEND THE SUMMER IMPROVING THEIR READING SKILLS. REID HOSPITAL HAS SUPPORTED THIS NOT FOR PROFIT ORGANIZATION SINCE IT BEGAN. THE GOVERNING BOARD OF REID HOSPITAL AND ESPECIALLY THE COMMUNITY BENEFIT COMMITTEE OF THE BOARD GUIDE THE OUTREACH TO THE COMMUNITY TO MAKE CERTAIN THAT REID HOSPITAL SERVES THE PATIENTS AND THE COMMUNITY WITH EQUAL CARE. SCHEDULE H, PART VI, LINE 7 STATE FILING OF COMMUNITY BENEFIT REPORT INDIANA SCHEDULE H, PART I, LINE 7 COSTING METHODOLOGY BOTH A COST ACCOUNTING SYSTEM AND COST-TO-CHARGE RATIO ARE USED TO CALCULATE AMOUNTS REPORTED ON PART I, LINE 7. THE COST ACCOUNTING SYSTEM ADDRESSES ALL PATIENT SEGMENTS. THE COST-TO-CHARGE RATIO IS DERIVED USING WORKSHEET 2, RATIO OF PATIENT CARE COST-TO-CHARGES. SCHEDULE H, PART I, LINE 7, COLUMN F PERCENT OF TOTAL EXPENSE $38,533,985 OF BAD DEBT EXPENSE IS INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN A (TOTAL FUNCTIONAL EXPENSES), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN. SCHEDULE H, PART I, LINE 7G SUBSIDIZED HEALTH SERVICES NO COSTS ATTRIBUTABLE TO A PHYSICIAN CLINIC WERE INCLUDED IN SUBSIDIZED HEALTH SERVICES. true CHILDREN'S JUSTICE AND ADVOCACY CNTR INC PO BOX 2195 RICHMOND IN 47375 161637581 501(C)3 10000 PROGRAMMING COMMUNITIES IN SCHOOLS OF WAYNE CNTY INC 33 S 7TH STREET RICHMOND IN 47374 352132872 501(C)3 18750 SCHOOL COORDINATORS SENIOR OPPORTUNITIES SERVICES INC 401 S 4TH STREET RICHMOND IN 47374 310918573 501(C)3 20000 PROGRAMMING INDIANA WOMEN IN NEED FOUNDATION INC 6507 CARROLTON AVE INDIANAPOLIS IN 46220 902057735 501(C)3 7500 WOMEN'S SERVICES BOYS & GIRLS CLUB OF WAYNE COUNTY IN INC 1717 S L STREET RICHMOND IN 47374 351065715 501(C)3 50000 PROGRAMMING BIRTH-TO-FIVE INC PO BOX 1815 RICHMOND IN 47375 351843800 501(C)3 11250 PARENT EDUCATORS HOPE CRISIS PREGNANCY CNTR OF CONNERSVILLE 220 W 9TH STREET CONNERSVILLE IN 47331 352029028 501(C)3 5625 PROGRAMMING CENTERSTONE OF INDIANA INC 501 S 7TH STREET RICHMOND IN 47374 351147323 501(C)3 6000 PROGRAMMING FAITH BUILDERS PROMOTIONS INCORPORATED 1306 CENTRAL AVE CONNERSVILLE IN 47331 320230913 501(C)3 14500 PROGRAMMING SUNRISE INC 2670 MINNEMAN ROAD RICHMOND IN 47374 310979407 501(C)3 5700 PROGRAMMING CITY OF RICHMOND PARKS & RECREATION 50 N 5TH STREET RICHMOND IN 47374 356001174 CITY GOV'T 10000 PROGRAMMING HOME IS THE FOUNDATION 1751 N BARRON STREET EATON OH 45320 421580792 501(C)3 10000 PROGRAMMING ACHIEVA RESOURCES CORPORATION INC PO BOX 1252 RICHMOND IN 47375 351005528 501(C)3 48500 PROGRAMMING RICHMOND FIRE DEPARTMENT 101 S 5TH STREET RICHMOND IN 47374 356001174 CITY GOV'T 10000 EQUIPMENT PURCHASE LIONS CLUB OF RICHMOND INC 3464 BOSTON TWP RD RICHMOND IN 47374 356028140 7500 PROGRAMMING COMMUNITY FOUNDATION OF RANDOLPH CNTY INC 213 S MAIN STREET WINCHESTER IN 47394 351903148 501(C)3 7500 PROGRAMMING WHOLE FAMILY COMMUNITY INITIATIVE INCORP 322 SUMMIT AVE CONNERSVILLE IN 47331 204798593 501(C)3 46800 PROGRAMMING OPEN ARMS MINISTRIES INC 401 E MAIN STREET RICHMOND IN 47374 300583053 501(C)3 5625 PROGRAMMING 17 1 SCHEDULE I, PART I, LINE 2 ORGANIZATION PROCEDURES FOR MONITORING THE COMMUNITY BENEFIT GRANT PROGRAM OF REID HOSPITAL DEMONSTRATES THE COMMITMENT OF THE ORGANIZATION TO COMMUNITY SERVICE THROUGH FUNDING ORGANIZATIONS WITHIN THE REID SERVICE AREA WHICH FUNCTION TO MEET AN IDENTIFIED HEALTH NEED OR NEEDS AND/OR REDUCE A GOVERNMENT BURDEN THROUGH THEIR EFFORTS OR PROGRAMS. GRANT APPLICATIONS ARE ACCEPTED ELECTRONICALLY VIA WEB APPLICATION ON A QUARTERLY BASIS. UPON SUBMISSION OF A GRANT BY A COMMUNITY ORGANIZATION, A REPRESENTATIVE FROM REID'S COMMUNITY BENEFIT DEPARTMENT MAY CONDUCT A SITE VISIT TO GAIN FURTHER KNOWLEDGE OF THE ORGANIZATION AND PROGRAM TO BE FUNDED. ALL GRANT APPLICATIONS ARE REVIEWED AND SCORED BY THE COMMUNITY BENEFIT DEPARTMENT MEMBERS. SCORING FACTORS INCLUDE THE ABILITY OF THE ORGANIZATION OR PROGRAM TO: - IMPROVE COMMUNITY HEALTH - ADVANCE HEALTH KNOWLEDGE THROUGH EDUCATION - ADVANCE HEALTH KNOWLEDGE THROUGH RESEARCH - RELIEVE A GOVERNMENT BURDEN - FOCUS ON ONE OF THE TOP PRIORITIZED HEALTH NEEDS BASED ON THE COMMUNITY HEALTH NEEDS ASSESSMENT INCLUDING: - IMPROVING ACCESS TO CARE - IMPACTING PHYSICAL ACTIVITY, NUTRITION, AND/OR WELLNESS - IMPACTING MENTAL HEALTH AND OR SUBSTANCE ABUSE - FOCUS ON ANOTHER IDENTIFIED HEALTH NEED THE SCORES ARE THEN DISCUSSED AND AVERAGED FOR AN OVERALL SCORE OF THE GRANT REQUEST. THESE REQUESTS AND SCORE SHEETS ARE THEN REVIEWED BY THE COMMUNITY BENEFIT COMMITTEE FOR APPROVAL AND MODIFICATIONS TO THE AWARDED AMOUNTS ARE DETERMINED. FOR AWARDS EXCEEDING $15,000, THE GRANT REQUEST MUST BE SUBMITTED TO THE BOARD OF DIRECTORS FOR FINAL APPROVAL. ORGANIZATIONS THAT ARE AWARDED GRANT FUNDS ARE REQUIRED TO SUBMIT QUARTERLY REPORTS DETAILING: - THE PROJECT FUNDED - THE NUMBER OF PEOPLE AND TARGET POPULATION SERVED - HOW THE FUNDS WERE UTILIZED - OUTCOMES OF THE ORGANIZATION/PROGRAM TO DATE ATTEMPTS WILL BE MADE BY THE COMMUNITY BENEFIT TEAM MEMBERS TO CONTACT ORGANIZATIONS WHO FAIL TO SUBMIT REPORTS IN AN EFFORT TO RESOLVE THE DEFICIENCY. FAILURE TO SUBMIT QUARTERLY REPORTS BY AN ORGANIZATION MAY JEOPARDIZE THE OPPORTUNITY FOR FUTURE COMMUNITY BENEFIT GRANT FUNDING TO THAT ORGANIZATION. LIKEWISE, ORGANIZATIONS WHO FAIL TO DEMONSTRATE POSITIVE COMMUNITY IMPACT MAY FORFEIT FURTHER FUNDING OPPORTUNITY. X X X X false true false false false false false false false CRAIG KINYON PRESIDENT & CEO - BOARD MEMBER 515043 0 2812 0 128496 0 37430 0 33068 0 716849 0 BRAD BARRETT MD BOARD MEMBER 0 314267 0 48353 0 23580 0 11180 0 29430 0 426810 PHILLIP SCOTT DO BOARD MEMBER 0 220970 0 33252 0 3882 0 11098 0 30346 0 299548 PATRICK ANDERSON MD BOARD MEMBER 0 359635 0 45590 0 18344 0 11180 0 14268 0 449017 ROHIT BAWA MD BOARD MEMBER 0 588170 0 51785 0 39551 0 11180 0 30567 0 721253 BRENDA CARTWRIGHT VP CNO 216387 0 1594 0 96151 0 23030 0 21798 0 358960 0 SCOTT RAUCH VICE PRESIDENT 174384 0 2109 0 90389 0 21046 0 25082 0 313010 0 JENNIFER EHLERS VP CQO 171279 0 2078 0 63999 0 19349 0 9605 0 266310 0 ANGIE DICKMAN VICE PRESIDENT 167833 0 1465 0 38340 0 18451 0 20629 0 246718 0 RANDALL KIRK VP/FOUNDATION PRESIDENT 158809 0 1708 0 43498 0 17041 0 32676 0 253732 0 CHRISTOPHER KNIGHT CFO 156340 0 0 0 610 0 20028 0 15417 0 192395 0 THOMAS HUTH MD VP MEDICAL AFFAIRS 300613 0 1516 0 48584 0 27263 0 28578 0 406554 0 BRADLEY HESTER PHARMACY DIRECTOR 150962 0 2005 0 11951 0 7091 0 28128 0 200137 0 RODNEY HOLDERMAN PHARMACIST 147391 0 15336 0 4648 0 7197 0 11009 0 185581 0 TIMOTHY LOVE INFORMATION SERVICES DIRECTOR 127994 0 2015 0 13295 0 6162 0 23226 0 172692 0 LUANNE CHRISTOFARO EXECUTIVE DIRECTOR OF NURSING 146170 0 1972 0 550 0 6394 0 19428 0 174514 0 DEBORAH ECKHOFF DIRECTOR OF CLINICAL INFORMATI 122931 0 1964 0 13096 0 5934 0 18718 0 162643 0 SCHEDULE J, PART I, LINE 4B SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN OFFICERS OF REID HOSPITAL PARTICIPATE IN A 457F NONQUALIFIED RETIREMENT PLAN. A HOSPITAL AUTHORITY OF RICHMOND 351867077 764791AB5 2009-03-31 95969373 REFUND 05 B/C BONDS ISSUED 04/20/0 false false false B HOSPITAL AUTHORITY OF RICHMOND 351867077 2012-12-17 80130000 REFUND 2005A BONDS ISSUED 4/20/05 false false false A 5695000 0 96019648 8206923 0 0 1616360 0 0 0 86150000 0 true false true true B 3805000 0 80130000 0 0 0 0 0 0 0 80130000 0 true false true true A false false true true false 0.00220 0.00914 0.01134 true false false true B false false true true false 0.00183 0.00763 0.00946 true false false true A false false false true false false 0 false 0 false true B false true false false true false 0 false 0 false true A true B true SCHEDULE K, PART II, LINE 4, COLUMN A AMOUNT INCLUDES EARNING ON BOND PROCEEDS OF $47,829. SCHEDULE K, PART IV, LINE 2C, COLUMN A REBATE COMPUTATION WAS COMPLETED 04/14/2014. SCHEDULE K, PART III, LINE 7, COLUMN A THE BONDS ARE NOT PRIVATE ACTIVITY BONDS BECAUSE THEY DO NOT MEET THE PRIVATE BUSINESS USE TEST. 0 PAUL LINGLE BOARD MEMBER 232293 CONSULTING & BROKERAGE FEES false WILLIAM CARTWRIGHT FAMILY OF OFFICER 22040 EMPLOYED FAMILY MEMBER false JON COOL FAMILY OF OFFICER 49049 EMPLOYED FAMILY MEMBER false AMANDA BRINKER FAMILY OF OFFICER 51465 EMPLOYED FAMILY MEMBER false CYNTHIA MENDENHALL FAMILY OF OFFICER 52301 EMPLOYED FAMILY MEMBER false JACLYN SMITH FAMILY OF OFFICER 22310 EMPLOYED FAMILY MEMBER false JACKIE SCOTT FAMILY OF BOARD MEMBER 46339 EMPLOYED FAMILY MEMBER false SCOTT HOFFER FAMILY OF BOARD MEMBER 56926 EMPLOYED FAMILY MEMBER false CLAUDIA ANDERSON FAMILY OF BOARD MEMBER 56201 EMPLOYED FAMILY MEMBER false MARY BARRETT FAMILY OF BOARD MEMBER 20715 EMPLOYED FAMILY MEMBER SCHEDULE L, PART IV TRANSACTIONS WITH INTERESTED PERSONS PAUL LINGLE, WHO IS A BOARD MEMBER OF REID HOSPITAL, IS A REAL ESTATE BROKER AND REPRESENTS REID HOSPITAL IN ALL OF ITS REAL ESTATE TRANSACTIONS. THIS BUSINESS RELATIONSHIP HAS BEEN APPROVED BY THE BOARD OF DIRECTORS. MR. LINGLE IS EXCUSED FROM ANY BOARD BUSINESS THAT COULD RESULT IN A CONFLICT OF INTEREST. THE COMPENSATION PAID TO MR. LINGLE IS BASED ON FAIR MARKET VALUE AND CONSISTENT WITH THE INDUSTRY. TOTAL FEES OF $232,293 WERE PAID FOR CONSULTING SERVICES, BROKERAGE FEES RECEIVED BY LINGLE REAL ESTATE FOR PROPERTY PURCHASED BY REID HOSPITAL, LEASE PAYMENTS FOR PROPERTY LEASED TO REID HOSPITAL, AND PROPERTY MANAGEMENT SERVICES BY LINGLE MANAGEMENT CO. WILLIAM CARTWRIGHT, HUSBAND OF BRENDA CARTWRIGHT, WHO IS AN OFFICER OF REID HOSPITAL, IS EMPLOYED BY REID HOSPITAL. HE EARNED $22,040 IN COMPENSATION DURING CALENDAR YEAR 2014. JON COOL, SON-IN-LAW OF BRENDA CARTWRIGHT, WHO IS AN OFFICER OF REID HOSPITAL, IS EMPLOYED BY REID HOSPITAL. HE EARNED $49,049 IN COMPENSATION DURING CALENDAR YEAR 2014. AMANDA BRINKER, DAUGHTER OF SCOTT RAUCH, WHO IS AN OFFICER OF REID HOSPITAL, IS EMPLOYED BY REID HOSPITAL. SHE EARNED $51,465 IN COMPENSATION DURING CALENDAR YEAR 2014. CYNTHIA MENDENHALL, SISTER-IN-LAW OF ANGIE DICKMAN, WHO IS AN OFFICER OF REID HOSPITAL, IS EMPLOYED BY REID HOSPITAL. SHE EARNED $52,301 IN COMPENSATION DURING CALENDAR YEAR 2014. JACLYN SMITH, DAUGHTER OF CRAIG KINYON, WHO IS AN OFFICER OF REID HOSPITAL, IS EMPLOYED BY REID HOSPITAL. SHE EARNED $22,310 IN COMPENSATION DURING CALENDAR YEAR 2014. JACKIE SCOTT, WIFE OF PHILLIP SCOTT, D.O., WHO IS A BOARD MEMBER OF REID HOSPITAL, IS EMPLOYED BY REID PHYSICIAN ASSOCIATES. SHE EARNED $46,339 IN COMPENSATION DURING CALENDAR YEAR 2014. SCOTT HOFFER, SON-IN-LAW OF JON FORD, WHO IS A BOARD MEMBER OF REID HOSPITAL, IS EMPLOYED BY REID HOSPITAL. HE EARNED $56,926 IN COMPENSATION DURING CALENDAR YEAR 2014. CLAUDIA ANDERSON, WIFE OF PATRICK ANDERSON, MD, WHO IS A BOARD MEMBER OF REID HOSPITAL, IS EMPLOYED BY REID HOSPITAL. SHE EARNED $56,201 IN COMPENSATION DURING CALENDAR YEAR 2014. MARY BARRETT, WIFE OF BRAD BARRETT, M.D., WHO IS A BOARD MEMBER OF REID HOSPITAL, IS EMPLOYED BY REID PHYSICIAN ASSOCIATES. SHE EARNED $20,715 IN COMPENSATION DURING CALENDAR YEAR 2014. FORM 990, PART VI, SECTION A, LINE 2 BUSINESS RELATIONSHIP REID HOSPITAL CEO, CRAIG KINYON, AND REID HOSPITAL BOARD MEMBER, JOHN MCBRIDE, HAVE A BUSINESS RELATIONSHIP THROUGH WEST END BANK. MORE SPECIFICALLY, MR. KINYON SERVES ON THE BOARD OF DIRECTORS OF WEST END BANK, AND MR. MCBRIDE IS THE PRESIDENT OF WEST END BANK. THERE WERE NO TRANSACTIONS BETWEEN REID HOSPITAL & HEALTH CARE SERVICES AND WEST END BANK DURING 2014. FORM 990, PART VI, SECTION B, LINE 11B POLICIES THIS FORM 990 WAS PREPARED AND REVIEWED BY AN OUTSIDE ACCOUNTING FIRM AND OUTSIDE LEGAL COUNSEL BEFORE BEING PRESENTED TO MANAGEMENT FOR REVIEW. FOLLOWING MANAGEMENT'S REVIEW, THE FORM 990 WAS PRESENTED TO THE BOARD FOR FINAL REVIEW AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 12C POLICIES EVERY YEAR ALL KEY EMPLOYEES, OFFICERS, AND DIRECTORS ARE REQUIRED TO DISCLOSE ANY POTENTIAL CONFLICT OF INTEREST RELATING TO REID HOSPITAL AND ITS SUBSIDIARIES. THIS INFORMATION IS REVIEWED BY THE ORGANIZATION'S ADMINSTRATIVE STAFF AND INTERNAL AUDITOR. DURING THE YEAR, EACH KEY EMPLOYEE AND OFFICER IS REQUIRED TO DISCLOSE ANY CONFLICT OF INTEREST ISSUE WHEN IT OCCURS. THE BOARD OF DIRECTORS IS ASKED IF THERE ARE ANY CONFLICT OF INTEREST ISSUES BEFORE EACH AND EVERY BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 15A POLICIES THE MISSION OF REID HOSPITAL IS TO SERVE THE PEOPLE OF A MULTI-COUNTY SERVICE AREA IN REFERENCE TO THEIR CURRENT AND FUTURE NEEDS FOR HEALTH CARE SERVICES. THE GOVERNING BOARD IS VESTED WITH THE ULTIMATE RESPONSIBILITY AND AUTHORITY FOR THE SUCCESSFUL FULFILLMENT OF THIS MISSION. THE GOVERNING BOARD OF REID HOSPITAL EXERCISES A FIDUCIARY RESPONSIBILITY ON BEHALF OF THE SERVICE AREA AND PEOPLE WE SERVE. WHILE REID HOSPITAL IS A PRIVATE, NON-PROFIT ORGANIZATION, THE BOARD IS COMMITTED TO A CONCEPT OF GOVERNANCE THAT SEES ITSELF AS HAVING A PUBLIC MISSION AND OUTLOOK. REID HOSPITAL'S GOVERNING BOARD MAINTAINS AN ONGOING COMMITMENT TO QUALITY AND EXCELLENCE. IT IS THE BELIEF OF THE BOARD THAT THE PEOPLE WE SERVE DESERVE NOTHING LESS. TO COMMIT TO A LESSER STANDARD OR TO BE ACCEPTING OF LESSER PERFORMANCE WOULD BE AN ULTIMATE BREACH OF OUR REASON FOR EXISTENCE. THE COMMITMENT TO QUALITY AND EXCELLENCE STEMS FROM A REALIZATION OF THE STEWARDSHIP INVOLVED IN GOVERNING AND PRESERVING A VITAL HEALTH CARE RESOURCE FOR THE PEOPLE OF A SIX-COUNTY AREA IN EAST CENTRAL INDIANA AND WESTERN OHIO. THIS STEWARDSHIP AND SENSE OF RESPONSIBILITY EXTENDS TO A REALIZATION THAT REID HOSPITAL IS THE LARGEST EMPLOYER IN WAYNE COUNTY. THIS BOARD'S ULTIMATE AUTHORITY AND RESPONSIBILITY INCLUDES ALL ASPECTS OF THE OPERATION: QUALITY OF SERVICES RENDERED, QUALITY OF ITS MEDICAL STAFF, QUALITY OF ITS LEADERSHIP AND OTHER FINANCIAL, LEGAL, ETHICAL, AND OPERATIONAL CONSIDERATIONS. AS A SERVICE TEAM PROVIDING HUMAN SERVICES, REID HOSPITAL'S PEOPLE (GOVERNING AND FOUNDATION BOARDS, MEDICAL STAFF, EMPLOYEES AND VOLUNTEERS) REPRESENT THE SINGLE MOST IMPORTANT ASSET POSSESSED BY THE ORGANIZATION. MORE THAN ANY OTHER FACTOR (BUILDINGS, EQUIPMENT, TECHNOLOGY, ETC.), THE QUALITY OF REID HOSPITAL'S HUMAN RESOURCES DETERMINES THE QUALITY OF SERVICES ULTIMATELY PROVIDED TO ITS PATIENTS AND FAMILIES. THIS COMMITMENT TO QUALITY AND THE STEWARDSHIP OF HUMAN RESOURCES SERVICES ARE THE FOUNDATION FOR REID HOSPITAL'S EMPLOYEE RELATIONS POSTURE. THIS APPLIES TO ALL ASPECTS OF EMPLOYEE RELATIONS AT ALL LEVELS. A COMPENSATION PHILOSOPHY THAT ATTRACTS AND RETAINS QUALIFIED, HIGH QUALITY AND COMMITTED EMPLOYEES AT ALL LEVELS IS IN THE BEST INTEREST OF REID HOSPITAL AND THOSE WE SERVE. THE CHIEF EXECUTIVE OFFICER (PRESIDENT AND CEO), SELECTED AND APPOINTED BY THE GOVERNING BOARD, IS CHARGED WITH THE RESPONSIBILITY OF DEVELOPING AND ADMINISTERING A COMPENSATION PLAN THAT REFLECTS THE PREVIOUSLY STATED PHILOSOPHY AND MISSION. THE CEO IS ACCOUNTABLE TO THE GOVERNING BOARD IN THIS REGARD, JUST AS HE/SHE IS ACCOUNTABLE IN ALL OTHER AREAS. THE FOLLOWING PHILOSOPHY AND GUIDELINES AFFIRM THE BOARD'S COMMITMENT IN REFERENCE TO DEVELOPING A REASONABLE AND APPROPRIATE COMPENSATION PACKAGE FOR THE CEO AND EXECUTIVE STAFF. EXECUTIVE COMPENSATION PHILOSOPHY, GUIDELINES, AND PRACTICES: AN EFFECTIVE EXECUTIVE COMPENSATION PROGRAM ADDRESSES A NUMBER OF GOALS. THESE GOALS INCLUDE: 1.) THE ABILITY TO ATTRACT AN INDIVIDUAL WHO IS HIGHLY QUALIFIED BY REASON OF PROFESSIONAL EDUCATION, PAST EXPERIENCE, AND PERSONAL CHARACTERISTICS; 2.) APPROPRIATE RECOGNITION OF PERFORMANCE (POSITIVE OR NEGATIVE); 3.) MAINTENANCE OF MOTIVATION FOR FURTHER PERFORMANCE AT A LEVEL OF EXCELLENCE; 4.) RETENTION (WHEN DESIRED) OF LEADERSHIP EXPERTISE; AND 5.) FAIRNESS. IT IS IMPORTANT TO NOTE THAT THE ISSUE OF FAIRNESS RELATES TO THE COMMUNITY, THE ORGANIZATION AND TO THE INDIVIDUAL. THAT IS, THE GOAL OF THE BOARD WILL NOT BE TO MINIMIZE COST PER SE. CONVERSELY, THE EXPECTATIONS OF THE CEO SHOULD NOT BE TO MAXIMIZE INCOME AS A SINGLE OBJECTIVE. THE GOAL OF BOTH PARTIES WILL BE TO ACHIEVE A COMPENSATION PACKAGE THAT IS FAIR TO THE COMMUNITY, FAIR TO THE ORGANIZATION, AND FAIR TO THE INDIVIDUAL. THE EXECUTIVE COMMITTEE OF THE GOVERNING BOARD, COMPRISED JON FORD, BILL QUIGG, TOM HOLKERT, PAUL LINGLE, EDITH PERKINS, JOHN MCBRIDE, GREG JANZOW AND BONITA WASHINGTON-LACEY, IS THE DESIGNATED COMPENSATION COMMITTEE AND HAS THE RESPONSIBILITY TO SET AND APPROVE CHANGES IN THE CEO'S COMPENSATION PACKAGE. THE COMPENSATION PACKAGE IS REVIEWED ANNUALLY AND ADJUSTED (IF WARRANTED) BASED ON REVIEW, ASSESSMENT AND EVALUATION OF ALL OF THE FOLLOWING FACTORS: 1.) AN ANNUAL PERFORMANCE REVIEW, CONDUCTED BY THE EXECUTIVE COMMITTEE WITH INPUT INVITED FROM THE FULL GOVERNING BOARD PRIOR TO THE REVIEW, WHICH IS SUMMARIZED IN WRITTEN FORM AND SHARED WITH THE ENTIRE BOARD VIA MINUTES OF THE EXECUTIVE COMMITTEE; 2.) THE GENERAL INCREASE (EXCLUDING MERIT) APPROVED BY THE GENERAL BOARD FOR HOURLY EMPLOYEES; 3.) COMPARISON OF COMPENSATION LEVELS AT HOSPITALS OF SIMILAR SIZE AND COMPLEXITY (USING TOTAL REVENUE, NUMBER OF EMPLOYEES AND/OR BED SIZE AS THE BASIS FOR THE SIMILARITY WHENEVER POSSIBLE), WITH THE GENERAL GOAL OF REMAINING WITHIN THE UPPER PORTION OF THE THIRD QUARTILE (50TH TO 75TH PERCENTILE) OF THESE HOSPITALS, ALTHOUGH OCCASSIONAL VARIATIONS ABOVE AND BELOW THIS RANGE WILL OCCUR; AND 4.) COMPARISON, IF AVAILABLE, OF THE MOST RELEVANT PERCENTAGE INCREASES AT OTHER HOSPITALS OF SIMILAR SIZE AND COMPLEXITY (AS DEFINED ABOVE). THE COMPARISON MENTIONED IN ITEMS #3 AND #4 SHALL UTILIZE DATA OBTAINED FROM COMPENSATION SURVEYS SEEN AS LEGITIMATE, STATISTICALLY VALID, AND GENERALLY ACCEPTED. THE SPECIFIC COMPARATIVE SURVEYS USED IN ANY GIVEN YEAR WILL BE OUTLINED IN THE COMMITTEE MINUTES OR EXHIBITS. EXAMPLES OF THIS TYPE OF BONA FIDE SURVEY INCLUDE: 1.) THE ANNUAL INDIANA HOSPITAL & HEALTH ASSOCIATION SURVEY; 2.) WILLIAM MERCER, INC. HEALTH NETWORK SURVEY; 3.) SULLIVAN COTTER & ASSOCIATES SURVEY; 4.) THE ANNUAL MANAGEMENT SCIENCE ASSOCIATION SURVEY; 5.) CLARK CONSULTING; AND 6.) WATSON WYATT. AFTER REVIEW AND EVALUATION OF THE FOUR FACTORS MENTIONED ABOVE, THE EXECUTIVE COMMITTEE SHALL ENACT WHATEVER ADJUSTMENTS ARE DEEMED APPROPRIATE. THESE DISCUSSIONS, CONCLUSIONS, AND ACTIONS WILL BE FULLY DOCUMENTED IN THE MINUTES OF THE EXECUTIVE COMMITTEE. ALSO DOCUMENTED, WILL BE A RECORD OF THOSE PRESENT FOR THE EVALUATION REVIEW DISCUSSION, AS WELL AS THOSE PRESENT FOR RESULTING COMMITTEE ACTIONS RELATING TO COMPENSATION. THROUGH THE PROCEDURES DESCRIBED ABOVE, REID HOSPITAL ENSURES THAT COMPENSATION FOR ITS CEO AND OTHER EXECUTIVE STAFF IS APPROVED IN ADVANCE BY AN AUTHORIZED BODY ENTIRELY COMPOSED OF INDIVIDUALS WITHOUT A CONFLICT OF INTEREST, THAT THIS AUTHORIZED BODY OBTAINS AND RELIES UPON APPROPRIATE DATA AS TO COMPARABILITY, AND THAT THE AUTHORIZED BODY ADEQUATELY AND TIMELY DOCUMENTS THE BASIS FOR ITS DETERMINATION. BY THUS TAKING THE STEPS NECESSARY FOR THESE COMPENSATION DECISIONS TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS, REID HOSPITAL ENDEAVORS TO SATISFY THE STANDARDS ADVOCATED BY THE INTERNAL REVENUE SERVICE FOR APPROVING EXECUTIVE COMPENSATION. FORM 990, PART VI, SECTION B, LINE 15B POLICIES THE CHIEF EXECUTIVE OFFICER (PRESIDENT AND CEO), SELECTED AND APPOINTED BY THE GOVERNING BOARD, IS CHARGED WITH THE RESPONSIBILITY OF DEVELOPING AND ADMINISTERING A COMPENSATION PLAN THAT REFLECTS THE PHILOSOPHY AND MISSION OF THE ORGANIZATION. THE CEO IS ACCOUNTABLE TO THE GOVERNING BOARD IN THIS REGARD JUST AS HE/SHE IS ACCOUNTABLE IN ALL OTHER AREAS. THE COMPENSATION IS SHARED WITH THE EXECUTIVE COMMITTEE FOR AWARENESS, CONSULTATION, AND DIALOGUE. FORM 990, PART VI, SECTION B, LINE 16B JOINT VENTURE POLICY ALTHOUGH REID HOSPITAL DOES NOT CURRENTLY HAVE A WRITTEN JOINT VENTURE POLICY, THE HOSPITAL DOES CAREFULLY EVALUATE EACH PROPOSED JOINT VENTURE TO ENSURE THAT THE ARRANGEMENT IS CONSISTENT WITH THE HOSPITAL'S FEDERAL TAX EXEMPT STATUS AND COMPLIES WITH ALL OTHER APPLICABLE LAW. APPROPRIATE PROVISIONS TO SAFEGUARD REID HOSPITAL'S FEDERAL TAX EXEMPT STATUS ARE INCLUDED IN ALL JOINT VENTURE AGREEMENTS, AND THE HOSPITAL MONITORS EXISTING JOINT VENTURE ARRANGEMENTS TO ENSURE COMPLIANCE. FORM 990, PART VI, SECTION C, LINE 19 DISCLOSURE THE ORGANIZATION'S FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC AS AN ATTACHMENT TO FORM 990 AT WWW.GUIDESTAR.ORG OR UPON REQUEST. THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE MADE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9 OTHER CHANGES IN FUND BALANCE CHANGE IN PENSION: ($7,862,822) TRANSFER FROM AFFILIATES: ($50,000) CHANGE IN FOUNDATION VALUE: $2,017,883 REID ANESTHESIALLC 1100 RIED PARKWAY RICHMOND IN 47374 ANESTHESIA IN 6257527 991634 NA REID HOSP & HEALTH CARE SRVC FDN INC 1100 REID PARKWAY RICHMOND IN 47374 237440530 SUPPORT IN 501(C)3 11D NA false REID PHYSICIAN ASSOCIATES INC 1100 REID PARKWAY RICHMOND IN 47374 263086555 OPERATIONS IN 501(C)3 9 REID HOSP false REIDANC 1000 Summit Dr Unit 300 MILFORD OH 45150 311454747 HOME CARE SRV OH NA RELATED 146044 false false 0.50000 ROSE LLC 1100 REID PARKWAY RICHMOND IN 47374 202844915 SURGERY CENTER IN REID HOSP RELATED 2549224 2249197 false false 0.55000 REID MOB LLC 1100 REID PARKWAY RICHMOND IN 47374 202191433 REAL ESTATE IN REID HOSP RELATED 290589 -281300 false false 0.65217 REID MSO LLC 1100 REID PARKWAY RICHMOND IN 47374 202191363 MGMT SERVICES IN REID HOSP RELATED 36380 -1249 false false 0.10417 NETTLE CREEK 4829 Indiana 1 HAGERSTOWN IN 47346 352036323 PHY PRACTICE IN NA RELATED 604 -6079 false false 0.49000 false false true true false false false false false true true false true false true false true false false REID HOSPITAL & HEALTH CARE SRVCS FDN C 606452 ACTUAL VALUE REID MOB LLC D 1700858 ACTUAL VALUE REID MOB LLC J 178162 ACTUAL VALUE REID MOB LLC K 3895612 ACTUAL VALUE REID OUTPATIENT SURGERY & ENDOSCOPY M 16425733 ACTUAL VALUE REID OUTPATIENT SURGERY & ENDOSCOPY O 5253776 ACTUAL VALUE REID HOSPITAL & HEALTH CARE SRVS FDN Q 116876 ALLOCATION