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 233009874 THE ALLENTOWN SPECIALTY HOSPITAL INC ALLE 6107763228 GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 181033295 RONALD J PETULA SVP OF FINANCE & CFO 6107763228 2015-05-04 1 JULIUS C GREEN CPA JD P00350393 2159720701 2013 2016-03-07 17:11:31Z GOOD SHEPHERD SPECIALTY HOSPITAL - ALLENTOWN RONALD J PETULA GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 181033295 17487373 0 X WWW.GOODSHEPHERDREHAB.ORG X 1999 PA TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING. 7 3 0 4 0 0 2348 776 16256077 17486261 3166 182 58016 154 16319607 17487373 0 0 0 0 6492977 6789403 0 0 0 7984287 8087100 14477264 14876503 1842343 2610870 15606486 18347638 1094387 1224669 14512099 17122969 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 13903393 17486261 THE ALLENTOWN SPECIALTY HOSPITAL, INC. DBA GOOD SHEPHERD SPECIALTY HOSPITAL - ALLENTOWN ("GSSH") IS A 32-BED FACILITY PROVIDING ACUTE CARE FOR MEDICALLY STABLE BUT COMPLEX PATIENTS WHO REQUIRE LONG PERIODS OF HOSPITALIZATION. GSSH WAS THE FIRST LONG-TERM ACUTE CARE HOSPITAL IN THE LEHIGH VALLEY REGION AND WAS ONE OF THE FIRST IN THE COUNTRY TO OFFER PATIENT MONITORING BY TELE-INTENSIVISTS THROUGH STATE-OF-THE-ART TECHNOLOGY. GSSH'S PATIENTS REQUIRE EXTENSIVE NURSING CARE AND ARE OTHERWISE TOO ILL TO BE DISCHARGED TO HOME, A NURSING FACILITY, OR AN ACUTE REHABILITATION HOSPITAL. GSSH'S MAJOR PROGRAMS OF SERVICE ARE THE COMPLEX MEDICAL PROGRAM, TRANSITIONAL REHABILITATION PROGRAM AND THE PULMONARY VENTILATOR PROGRAM, WHICH TYPICALLY EXCEEDS NATIONAL VENT WEANING AVERAGES. IN FISCAL YEAR 2014, GSSH DISCHARGED A TOTAL OF 415 INPATIENTS AND HAD 10,309 TOTAL PATIENT DAYS. 13903393 1 0 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 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 0 0 0 0 0 0 0 0 0 0 0 X 7 3 0 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA FL MN X RONALD J PETULA SVP OF FINANCE & CFO 6107763228 GOOD SHEPHERD PLAZA 850 SOUTH 5TH ALLENTOWN PA 181033295 JOHN KRISTEL CHAIR/PRESIDENT/CEO 8.50 51.50 X X 0 345121 17831 SAMUEL A MIRANDA JR VICE CHAIR/SVP & CNO 4.90 55.10 X X 0 219436 53224 JAMES J DALEY MD TRUSTEE 1.00 59.00 X 0 226992 20761 PETER T ENDER MD TRUSTEE 1.00 X 0 0 0 SUSAN L LAWRENCE TRUSTEE 1.00 X 0 0 0 WILLIAM GOULD TRUSTEE 1.00 X 0 0 0 GREGORY WUCHTER TRUSTEE 60.00 X 89140 19886 0 DANIEL C CONFALONE SECRETARY/TREASURER/SVP & CFO (UNTIL 11/1/13) 1.00 59.00 X 0 355847 25255 RONALD PETULA SVP & CFO 1.00 59.00 X 0 159857 16515 SARA T GAMMON PRESIDENT/CEO (UNTIL 7/18/13) 0.20 39.80 X 0 1037018 37472 89140 2364157 171058 0 0 1 0 LEHIGH VALLEY HOSPITAL CEDAR CREST I-78 ALLENTOWN PA 18103 MEDICAL SERVICES 1262304 HEALTH NETWORK LABS 2024 LEHIGH STREET ALLENTOWN PA 18103 LABORATORY SERVICES 314083 SODEXHO OPERATIONS LLC 4880 PAYSPHERE CIRCLE CHICAGO IL 60674 DIETARY/FOOD SERVICES 262350 CROTHALL HEALTHCARE INC 1200 SOUTH CEDAR CREST BLVD ALLENTOWN PA 18103 HOUSEKEEPING SERVICES 189529 LVPG 2100 MACK BOULEVARD ALLENTOWN PA 18103 MEDICAL DIRECTOR FEES 110000 6 776 776 NET PATIENT SVC REV 623000 17486261 17486261 17486261 182 182 MEDICAL RCRDS ABSTRACTING 900099 154 154 154 17487373 17486261 0 336 X 5317664 4783931 533733 277144 198317 78827 813619 579395 234224 380976 341717 39259 3324 3324 1667374 1665157 2217 221844 203460 18384 714299 714299 16170 738 15432 6386 5634 752 131383 131383 CORPORATE ALLOCATION 3454352 3454352 MEDICAL SUPPLIES 1566077 1565576 501 FOOD 169939 165764 4175 BAD DEBT EXPENSE 66324 66324 69628 27346 42282 14876503 13903393 973110 0 2317130 2698637 97089 112975 2432923 1887580 593678 545343 12598589 14990683 15606486 18347638 502016 645165 592371 579504 1094387 1224669 X 14512099 17122969 14512099 17122969 15606486 18347638 2610870 0 X X 0 1 X 1 0 X 0 0 0 0 0 0 0 0 1 3324 3324 0 PART II-B, LINE 1: THE ALLENTOWN SPECIALTY HOSPITAL, INC. HAD LOBBYING EXPENDITURES THROUGH A CERTAIN PERCENTAGE OF MEMBERSHIP FEES PAID TO THE NATIONAL ASSOCIATION OF LONG TERM HOSPITALS(NALTH) AND THE HOSPITAL AND HEALTHSYSTEM ASSOCIATION OF PA (HAP) DURING THE FISCAL YEAR ENDING JUNE 30, 2014. $3324 WAS THE PORTION OF THE MEMBERSHIP FEES THAT WERE DEEMED TO BE USED TOWARDS LOBBYING. 190277 185222 5055 2242646 1702358 540288 545343 AMOUNTS DUE FROM AFFILIATES 14990683 14990683 ESTIMATED THIRD-PARTY PAYOR SETTLEMENTS 579504 579504 X 17421049 -66324 -66324 17487373 0 17487373 14810179 0 14810179 66324 66324 14876503 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 INCOME TAX RETURNS FOR THE YEARS ENDED PRIOR TO JUNE 30, 2011 NO LONGER REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 2D - OTHER ADJUSTMENTS: BAD DEBTS NETTED AGAINST REVENUE ON FINANCIAL STATEMENTS -66,324. PART XII, LINE 4B - OTHER ADJUSTMENTS: BAD DEBTS NETTED AGAINST REVENUE ON FINANCIAL STATEMENTS 66,324. 1 1 X 1 X 0 1 1 1 0 1 1 6934 6934 0.00050 6934 6934 0.00050 30031 30031 0.00200 30031 30031 0.00200 36965 36965 0.00250 1 8583 1030 10170176 8229682 1940494 X 1 1 1 1 THE ALLENTOWN SPECIALTY HOSPITAL INC 850 SOUTH 5TH STREET ALLENTOWN PA 181033295 X LONG-TERM ACUTE CARE HOSPITAL THE ALLENTOWN SPECIALTY HOSPITAL INC 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 THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 3: THE HEALTH CARE COUNCIL OF THE 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. THE ALLENTOWN SPECIALTY HOSPITAL, INC. 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. THE ALLENTOWN SPECIALTY HOSPITAL, INC. 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 THE ALLENTOWN SPECIALTY HOSPITAL, INC. 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. THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 11: THE SPECIALTY 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 SPECIALTY 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 SPECIALTY HOSPITAL'S CHARITY CARE POLICY ENTITLES PATIENTS TO COMPLETELY FREE CARE. THE SPECIALTY 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 ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 12I: THE DISCOUNTED PRIVATE PAY RATE IS BASED ON COST OF SERVICE. THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 20D: THE SPECIALTY HOSPITAL PROVIDES POST-ACUTE MEDICAL CARE. SERVICES PROVIDED ARE NOT CONSIDERED EMERGENCY MEDICAL CARE. WITH RESPECT TO MEDICALLY NECESSARY CARE, THE AMOUNT THAT THE SPECIALTY 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 LONG-TERM ACUTE SERVICES, INC., D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL (THE "SPECIALTY 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 SPECIALTY 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 SPECIALTY HOSPITAL'S CHARITY CARE POLICY ENTITLES PATIENTS TO COMPLETELY FREE CARE. THE SPECIALTY 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 SPECIALTY 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 SPECIALTY 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 SPECIALTY 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 SPECIALTY 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 SPECIALTY 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 SPECIALTY 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, 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 $66,324. PART II, COMMUNITY BUILDING ACTIVITIES: WHILE MINIMAL COMMUNITY BUILDING ACTIVITIES ARE PROVIDED DIRECTLY WITHIN THE SPECIALTY HOSPITAL, GSRN, THE SPECIALTY 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 SPECIALTY HOSPITAL'S COST REPORT IS QUITE COMPREHENSIVE. DIRECTLY ALLOCATED COSTS ARE USED AS A STARTING POINT AND OTHER COSTS ARE STEPPED-DOWN TO THE SPECIALTY HOSPITAL BASED UPON INDUSTRY-ACCEPTABLE ALLOCATION METHODOLOGIES. THE SPECIALTY HOSPITAL HAS NOT REPORTED A MEDICARE SHORTFALL IN PART III, SECTION B (MEDICARE), LINE 7. HAD THERE BEEN A SHORTFALL, IT SHOULD BE CONSIDERED AS A COMPONENT OF COMMUNITY BENEFIT BECAUSE THE SPECIALTY 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 SPECIALTY 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 SPECIALTY 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 THE 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:"THE GOOD SHEPHERD SPECIALTY 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 SPECIALTY 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 SPECIALTY HOSPITAL). THE GSRN BOARD OF TRUSTEE MEMBERS (BOARD MEMBERS) ALL LIVE IN THE SPECIALTY 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 SPECIALTY HOSPITAL. NONE OF THE BOARD MEMBERS ARE FAMILY MEMBERS.2) THE SPECIALTY HOSPITAL ALSO MAINTAINS A SEPARATE BOARD OF TRUSTEES. ALL OF THE MEMBERS OF THIS SEPARATE BOARD LIVE IN THE SPECIALTY HOSPITAL'S PRIMARY SERVICE AND MOST ARE MANAGEMENT EMPLOYEES OF THE SPECIALTY HOSPITAL.3) THE SPECIALTY HOSPITAL EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS PRIMARY SERVICE AREA. ALL APPLICANTS ARE APPROVED BY THE SPECIALTY HOSPITAL'S MEDICAL EXECUTIVE COMMITTEE. 4) THE SPECIALTY HOSPITAL PARTICIPATES IN THE MEDICARE, CHAMPUS, TRICARE AND OTHER GOVERNMENT SPONSORED HEALTHCARE PROGRAMS.5) THE COMMONWEALTH OF PENNSYLVANIA DOES NOT RECOGNIZE THE LONG-TERM ACUTE CARE HOSPITAL LEVEL OF SERVICE. ACCORDINGLY, THE SPECIALTY HOSPITAL DOES NOT PARTICIPATE IN THE PENNSYLVANIA MEDICAID PROGRAM. HOWEVER, PATIENTS THAT QUALIFY FOR THE PENNSYLVANIA MEDICAID PROGRAM WOULD ALSO MEET GOOD SHEPHERD'S CHARITY CARE CRITERIA. FINALLY, THE SPECIALTY HOSPITAL ACCEPTS MEDICAID PATIENTS FROM OTHER STATES.6) THE SPECIALTY HOSPITAL OPERATES IN A PRIMARY SERVICE AREA, WHICH INCLUDES ONLY ONE OTHER FREE-STANDING LONG-TERM ACUTE CARE HOSPITAL (A FOR-PROFIT FACILITY).7) TO THE EXTENT THE SPECIALTY HOSPITAL GENERATES SURPLUS OPERATING MARGINS AND/OR FREE CASH FLOW, THE AMOUNTS ARE COMPLETELY REINVESTED WITHIN THE SPECIALTY 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.8) THE SPECIALTY 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 1 1 0 0 0 0 0 1 0 JOHN KRISTEL CHAIR/PRESIDENT/CEO 0 272797 0 72324 0 0 0 10292 0 7539 0 362952 0 0 SAMUEL A MIRANDA JR VICE CHAIR/SVP & CNO 0 219436 0 0 0 0 0 43328 0 9896 0 272660 0 0 JAMES J DALEY MD TRUSTEE 0 224419 0 2573 0 0 0 7559 0 13202 0 247753 0 0 DANIEL C CONFALONE SECRETARY/TREASURER/SVP & CFO (UNTIL 0 313710 0 0 0 42137 0 11851 0 13404 0 381102 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 PART I, LINE 3 THE CEO IS COMPENSATED BY GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), AN AFFILIATED TAX-EXEMPT ORGANIZATION. THE ALLENTOWN SPECIALTY HOSPITAL, INC. RELIED ON GSRN'S USE OF ALL CRITERIA SPECIFIED IN LINE 3 TO ESTABLISH COMPENSATION. PART I, LINES 4A-B DANIEL CONFALONE - $42,127 SEVERANCE AND $1,527. STIPEND PAID IN CY13. 6 WEEKS OF A 52 WEEK TOTAL DANIEL CONFALONE - $244,732 SEVERANCE AND $8,144. STIPEND PAID IN FY14. 32 WEEKS OF A 52 WEEK TOTAL. SARA GAMMON - $643,148 DISTRIBUTION FROM NON-QUALIFIED RETIREMENT PLAN PART I, LINE 7 GSRN HAS A PERFORMANCE COMPENSATION PROGRAM IN PLACE WHICH IS APPROVED BY THE BOARD. CERTAIN MEMBERS OF MANAGEMENT CAN RECEIEVE 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 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 ALLENTOWN SPECIALTY HOSPITAL, INC. BY THE COMMON REPORTING AGENT CANNOT BE SEPARATELY IDENTIFIED AND DETERMINED. FORM 990, PART V, LINE 2: THE SALARY AND BENEFIT EXPENSES REPORTED ON FORM 990, PART IX, AND THE EMPLOYEE INFORMATION REPORTED ON FORM 990, PART VII, ARE THE ALLENTOWN SPECIALTY HOSPITAL, INC. D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL - ALLENTOWN'S ("GSSH") ALLOCATED PAYROLL COSTS BASED ON TIME SPENT. ALL INDIVIDUALS WORKING AT GSSH ARE EMPLOYEES OF THE GOOD SHEPHERD REHABILITATION HOSPITAL ("GSRH") AND ARE REPORTED ON ITS FORM W-3 UNDER EIN: 23-1371947. GSRH IS AN AFFILIATED TAX-EXEMPT ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A THE SOLE CORPORATE MEMBER OF THE ORGANIZATION IS THE GOOD SHEPHERD LONG TERM ACUTE CARE SERVICES, INC. ("LTACS"). THE SOLE CORPORATE MEMBER OF LTACS IS THE GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), A RELATED TAX-EXEMPT ENTITY. THE GOVERNING BOARD OF THE ORGANIZATION SHALL BE APPOINTED BY THE BOARD OF GSRN. IN ADDITION, ANY AMENDMENTS TO THE ORGANIZATION'S BYLAWS MUST BE APPROVED BY THE BOARD OF LTACS. 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. IN ACCORDANCE 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 CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G PHYSICIANS FEES: PROGRAM SERVICE EXPENSES 265,894. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 265,894. PHARMACY: PROGRAM SERVICE EXPENSES 169,247. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 169,247. TRANSPORTATION: PROGRAM SERVICE EXPENSES 20,069. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 20,069. LAUNDRY & HOUSEKEEPING: PROGRAM SERVICE EXPENSES 248,838. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 248,838. LABORATORY: PROGRAM SERVICE EXPENSES 430,556. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 430,556. RADIOLOGY: PROGRAM SERVICE EXPENSES 183,894. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 183,894. THERAPY: PROGRAM SERVICE EXPENSES 18,980. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 18,980. DIALYSIS: PROGRAM SERVICE EXPENSES 145,413. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 145,413. DIETARY: PROGRAM SERVICE EXPENSES 97,954. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 97,954. OTHER: PROGRAM SERVICE EXPENSES 84,312. MANAGEMENT AND GENERAL EXPENSES 2,217. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 86,529. 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 HOSPITAL GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 231371947 PROVIDES COMPREHENSIVE INPATIENT AND OUTPATIENT REHABILITATION SERVICES PA 501(C)(3) LINE 3 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 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 0 0 0 0 1 0 1 1 1 1 1