2015-05-12T13:58:07-05:00 2014-06-30 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2013-07-01 232328297 SACRED HEART HEALTHCARE SYSTEM % BRIAN WESSNER SACR 6107764500 421 W CHEW STREET Suite ALLENTOWN PA 181023406 DANIEL CONFALONE CFO 9738989494 2015-05-06 true Scott J Mariani P00642486 9738989494 2013 2016-02-25 16:41:14Z JOHN NESPOLI 421 W CHEW STREET ALLENTOWN PA 181023406 19706032 false X WWW.SHH.ORG X 1984 PA THE ORG. IS COMMITTED TO PROVIDING HEALTHCARE & WELLNESS, FROM CONCEPTION TO NATURAL DEATH, THROUGH QUALITY SVCS & PROG. BASED ON CATHOLIC ETHICAL & RELIGIOUS DIRECTIVES. 11 10 200 25 0 0 0 0 18217962 19037999 172905 116247 572750 551786 18963617 19706032 0 0 0 0 16642725 17433862 0 0 0 7523334 7789261 24166059 25223123 -5202442 -5517091 5970883 6363281 7008118 7326530 -1037235 -963249 X SACRED HEART HEALTHCARE SYSTEM IS A NOT-FOR-PROFIT ENTITY THAT OPERATES AS THE PARENT ORGANIZATION OF SACRED HEART HOSPITAL, SACRED HEART ANCILLARY SERVICES, INC., SACRED HEART FOUNDATION AND SH REALTY CORPORATION. SACRED HEART HOSPITAL, A NOT-FOR-PROFIT ENTITY, PROVIDES ACUTE CARE SERVICES TO THE LOCAL COMMUNITY. SACRED HEART ANCILLARY SERVICES, INC. IS A PENNSYLVANIA FOR-PROFIT ENTITY PROVIDING PHARMACY AND INFUSION SERVICES TO THE GENERAL PUBLIC. SACRED HEART FOUNDATION IS A NOT-FOR PROFIT ENTITY PROVIDING MANAGEMENT SERVICES. SH REALTY CORPORATION, A NOT-FOR-PROFIT ENTITY, HOLDS REAL ESTATE. MISSION: SACRED HEART HEALTHCARE SYSTEM IS COMMITTED TO PROVIDING HEALTHCARE AND WELLNESS, FROM CONCEPTION TO NATURAL DEATH, THROUGH QUALITY SERVICES AND PROGRAMS BASED ON THE CATHOLIC ETHICAL AND RELIGIOUS DIRECTIVES. OUR HEALTHCARE NETWORK CONTINUES ITS LEADERSHIP IN THE COMMUNITY THROUGH COLLABORATION AND AFFILIATION WITH RECOGNIZED REGIONAL AND NATIONAL EXPERTS. WE ASSURE THAT THE SYSTEM WI false false 22700809 0 19037999 EXPENSES INCURRED IN PROVIDING VARIOUS MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. PLEASE REFER TO THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT INCLUDED IN SCHEDULE O. 22700809 true false false false false false false false false false true false true false true true false true false false false false false false false false false false false true false false false false false false false false false false false false false true true true true false true 33 0 true 200 true false false false false false false false false false false false X 11 10 false true false false false false false true true false false true true true true true true true true true true PA X BRIAN WESSNER 6107765150 421 W CHEW STREET ALLENTOWN PA 181023406 X PAUL HUCK CHAIRMAN - DIRECTOR 1.0 X X 0 0 0 THOMAS J SCALICI FIRST VICE CHAIRMAN - DIRECTOR 1.0 X X 0 0 0 JOSEPH FITZPATRICK SECOND VICE CHAIRMAN-DIRECTOR 1.0 X X 0 0 0 NELSON DIAZ DIRECTOR 1.0 X 0 0 0 MIRIAM HUERTAS DIRECTOR 1.0 X 0 0 0 REVEREND THOMAS J KULLER SJ DIRECTOR 1.0 X 0 0 0 JAMES KUSKO DIRECTOR 1.0 X 0 0 0 JOHN L NESPOLI DIRECTOR - PRESIDENT/CEO 55.0 X X 0 477644 121383 BRENT L PETERS DIRECTOR 1.0 X 0 0 0 JAMES M SEITZINGER DIRECTOR 1.0 X 0 0 0 PAUL J SMITH JR DIRECTOR 1.0 X 0 0 0 STEPHEN A LANSHE ESQ SECRETARY - VP GENERAL COUNSEL 55.0 X 0 231467 26096 JOANN LEAHY MD PHYSICIAN 55.0 X 418119 0 14518 CLARENCE HOLLAND MD PHYSICIAN 55.0 X 403939 0 18103 TAMAM HABIB MD PHYSICIAN 55.0 X 352792 0 29213 DAVID A KOHAN DO PHYSICIAN 55.0 X 348687 0 26742 ANDREW NEWMAN MD PHYSICIAN 55.0 X 348559 0 27818 1872096 709111 263873 41 false true false QUALITY SYSTEMS INC PO BOX 809390 CHICAGO IL 606809390 BILLING 880330 REGNER AND ASSOCIATES LLC PO BOX 515 STOCKTON NJ 085590851 MANAGEMENT 499200 RENGABHASHYAM MD PC 1855 EMERALD DRIVE OREFIELD PA 18069 ANESTHESIA 400756 CHG COMPANIES INC PO BOX 972651 DALLAS TX 753972651 STAFFING 221909 LEHIGH VALLEY PRIMARY CARE 1259 S CEDAR CREST BOULEVARD ALLENTOWN PA 18103 PHYSICIAN STAFFING 152002 9 X 0 NET PATIENT SERVICE REVENUE 541900 10118134 10118134 MANAGEMENT SERVICES 541610 5575334 5575334 OTHER HEALTHCARE RELATED REVENUE 541900 3344531 3344531 19037999 116247 116247 0 0 551786 551786 0 551786 551786 0 0 0 0 0 19706032 19037999 0 668033 X 0 0 0 0 0 0 15103247 13592923 1510324 185239 166715 18524 1269150 1142236 126914 876226 788603 87623 374449 337004 37445 10000 9000 1000 83976 75578 8398 0 0 0 4076718 3669046 407672 27719 24947 2772 222691 200422 22269 40413 36372 4041 0 901356 811220 90136 2914 2622 292 0 44609 40148 4461 1229 1106 123 0 177350 159615 17735 701329 631196 70133 MEDICAL SUPPLIES 595383 535845 59538 0 CONTRACTED SERVICES 194333 174899 19434 0 REPAIRS AND MAINTENANCE 174320 156888 17432 0 DUES, SUBSCRIPTIONS & LIC. 58633 52770 5863 0 101839 91654 10185 25223123 22700809 2522314 0 X 1603 1425 53781 247691 0 0 1496077 1546209 0 0 0 0 39782 17975 90289 101266 207255 189895 4540030 3781564 784466 758466 0 0 0 0 2884643 3037867 330675 330675 82312 131812 5970883 6363281 3351405 3385816 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3656713 3940714 7008118 7326530 X -1037235 -963249 0 0 0 0 -1037235 -963249 5970883 6363281 X -5517091 5591077 X X false true X true false X X X SACRED HEART HOSPITAL 231352208 03 false true true 0 1 0 10000 10000 530000 530000 0 942769 787886 154883 2934988 2412407 522581 122273 51271 71002 758466 ASSISTED LIVING 3027867 F PHARMACY 10000 F 3037867 0 DUE TO AFFILIATES 3940714 3940714 X SCHEDULE D, PART X THE ORGANIZATION IS THE PARENT ENTITY OF SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE SYSTEM ISSUES CONSOLIDATED AUDITED FINANCIAL STATEMENTS WHICH INCLUDE ALL RELATED ENTITIES; INCLUDING THIS ORGANIZATION. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS ALSO CONTAIN CONSOLIDATING SCHEDULES ON AN ENTITY BY ENTITY BASIS. THE FIN 48 (ASC 740) FOOTNOTE BELOW IS FROM THE SYSTEM'S YEAR ENDED JUNE 30, 2014 CONSOLIDATED AUDITED FINANCIAL STATEMENTS. THE SYSTEM ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES BY PRESCRIBING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN 2014 OR 2013. THE SYSTEM'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES. X X X false true false false false false false true false JOHN L NESPOLI DIRECTOR - PRESIDENT/CEO 0 411403 0 56777 0 9464 0 105100 0 16283 0 599027 0 0 STEPHEN A LANSHE ESQ SECRETARY - VP GENERAL COUNSEL 0 204015 0 27038 0 414 0 4158 0 21938 0 257563 0 0 JOANN LEAHY MD PHYSICIAN 417357 0 0 0 762 0 5100 0 9418 0 432637 0 0 0 CLARENCE HOLLAND MD PHYSICIAN 403177 0 0 0 762 0 0 0 18103 0 422042 0 0 0 TAMAM HABIB MD PHYSICIAN 352782 0 0 0 10 0 5100 0 24113 0 382005 0 0 0 DAVID A KOHAN DO PHYSICIAN 348291 0 0 0 396 0 5100 0 21642 0 375429 0 0 0 ANDREW NEWMAN MD PHYSICIAN 348499 0 0 0 60 0 5100 0 22718 0 376377 0 0 0 PART VII AND SCHEDULE J TAXABLE COMPENSATION REPORTED HEREIN IS DERIVED FROM 2013 FORMS W-2. SCHEDULE J, PART I; QUESTION 4B THE DEFERRED COMPENSATION AMOUNT IN COLUMN C FOR THE FOLLOWING INDIVIDUAL INCLUDES UNVESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) WHICH IS SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUAL MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNT OUTLINED HEREIN WAS NOT INCLUDED IN THE INDIVIDUAL'S 2013 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: JOHN L. NESPOLI, $100,000. SCHEDULE J, PART I; QUESTION 7 CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING CALENDAR YEAR 2013 WHICH AMOUNTS WERE INCLUDED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S 2013 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT. CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS SACRED HEART HEALTHCARE SYSTEM IS THE PARENT ENTITY OF A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM, WHICH INCLUDES SACRED HEART HOSPITAL; AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION AS DESCRIBED BELOW: SACRED HEART HEALTHCARE SYSTEM IS A NOT-FOR-PROFIT ENTITY THAT OPERATES AS THE PARENT ORGANIZATION OF SACRED HEART HOSPITAL, SACRED HEART ANCILLARY SERVICES, INC., SACRED HEART FOUNDATION AND SH REALTY CORPORATION. SACRED HEART HOSPITAL, A NOT-FOR-PROFIT ENTITY, PROVIDES ACUTE CARE SERVICES TO THE LOCAL COMMUNITY. SACRED HEART ANCILLARY SERVICES, INC. IS A PENNSYLVANIA FOR-PROFIT ENTITY PROVIDING PHARMACY AND INFUSION SERVICES TO THE GENERAL PUBLIC. SACRED HEART FOUNDATION IS A NOT-FOR PROFIT ENTITY PROVIDING MANAGEMENT SERVICES. SH REALTY CORPORATION, A NOT-FOR-PROFIT ENTITY, HOLDS REAL ESTATE. MISSION: SACRED HEART HEALTHCARE SYSTEM IS COMMITTED TO PROVIDING HEALTHCARE AND WELLNESS, FROM CONCEPTION TO NATURAL DEATH, THROUGH QUALITY SERVICES AND PROGRAMS BASED ON THE CATHOLIC ETHICAL AND RELIGIOUS DIRECTIVES. OUR HEALTHCARE NETWORK CONTINUES ITS LEADERSHIP IN THE COMMUNITY THROUGH COLLABORATION AND AFFILIATION WITH RECOGNIZED REGIONAL AND NATIONAL EXPERTS. WE ASSURE THAT THE SYSTEM WILL REMAIN VIABLE BY PROVIDING COST EFFECTIVE AND VALUE-DRIVEN SERVICES. A PROGRAM OF CONTINUOUS PERFORMANCE IMPROVEMENT ENABLES US TO RESPOND TO THE NEEDS OF THE COMMUNITY WHILE GIVING MEANINGFUL EMPLOYMENT, EDUCATION AND TRAINING TO OUR EMPLOYEES. IN FULFILLING THIS MISSION, SACRED HEART HEALTHCARE SYSTEM RECOGNIZES THE DIGNITY AND ETERNAL DESTINY OF EACH INDIVIDUAL WITH SPECIAL CONCERN FOR THE SICK AND THE POOR. SACRED HEART HOSPITAL IS LOCATED IN AN AREA WITH A HIGH CONCENTRATION OF LOW INCOME HOUSEHOLDS. AS A RESULT, THE HOSPITAL PROVIDES CARE TO A LARGE NUMBER OF INDIGENT PATIENTS. IN THE FISCAL YEAR ENDED JUNE 30, 2014 PATIENTS WITH MEDICAID, MA MANAGED CARE OR NO INSURANCE AT ALL MADE UP 28% OF SACRED HEART'S INPATIENT VOLUME AND 32% OF ITS OUTPATIENT VOLUME. THE HOSPITAL PROVIDES CHARITY CARE TO PATIENTS WHO MEET CERTAIN CRITERIA BY PROVIDING SERVICES AT A REDUCED RATE OR AT NO CHARGE AT ALL. IN FISCAL YEAR 2014 THE HOSPITAL WROTE OFF $2.2 MILLION IN CHARGES PURSUANT TO ITS CHARITY CARE POLICY. ALSO, IN RECOGNIZING ITS MISSION TO THE COMMUNITY, THE HOSPITAL PROVIDES CARE TO PERSONS COVERED BY MEDICAL ASSISTANCE WHICH REIMBURSES THE HOSPITAL BELOW INCURRED COSTS. BACKGROUND ========== SACRED HEART HOSPITAL ("SHH") IS A GENERAL MEDICAL, SURGICAL AND TEACHING HOSPITAL. SHH IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. SHH IS AN AFFILIATE OF THE SACRED HEART HEALTHCARE SYSTEM; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. PURSUANT TO ITS CHARITABLE PURPOSES, SHH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, SHH OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1) SHH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2) SHH OPERATES AN ACTIVE EMERGENCY DEPARTMENT FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3) SHH MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; AND 4) CONTROL OF SHH RESTS WITH ITS BOARD OF DIRECTORS; WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY. 5) SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. THE MISSIONARY SISTERS OF THE MOST SACRED HEART RELIGIOUS ORDER IN GERMANY ARRIVED IN ALLENTOWN ON JUNE 15, 1912 TO HELP CARE FOR THE SICK AND INJURED OF THE SACRED HEART PARISH DURING A WIDESPREAD DIPHTHERIA OUTBREAK. AS DIPHTHERIA RAGED, THE SISTERS GAVE DISPENSARY SERVICES AS WELL AS VISITING NURSE SERVICES. THIS WAS THE ACTUAL "START" OF SACRED HEART HOSPITAL. IN 1915, THE ACTUAL FOUNDING OF SACRED HEART HOSPITAL AS A COMMUNITY INSTITUTION WAS FORMALIZED AND DEDICATED. TWO YEARS LATER, SACRED HEART HOSPITAL WAS OFFICIALLY INCORPORATED UNDER PENNSYLVANIA LAW. IN 1920, SACRED HEART HOSPITAL RECEIVED APPROVAL TO TRAIN INTERNS AND IN 1922 WAS ACCREDITED BY THE AMERICAN COLLEGE OF SURGEONS. SINCE THEN, SACRED HEART HOSPITAL HAS EXPANDED ITS CAMPUS AND ITS REACH ACROSS OUR COMMUNITY. OUR CAMPUS INCLUDES A 215-BED CATHOLIC MEDICAL CENTER WHICH OFFERS A WIDE RANGE OF ADVANCED MEDICAL, SURGICAL AND OUTPATIENT HOSPITAL SERVICES. SACRED HEART HEALTHCARE SYSTEM AND ITS AFFILIATES ("SACRED HEART") PROVIDE A VAST RANGE OF SPECIALTY SERVICES AT OUR 421 CHEW STREET LOCATION IN ALLENTOWN, PA, INCLUDING BARIATRIC SERVICES, BEHAVIORAL HEALTH, CANCER CARE, CARDIAC SERVICES, EMERGENCY SERVICES, ENDOVASCULAR SERVICES, IMAGING SERVICES, LABORATORY SERVICES, LUNG AND RESPIRATORY SERVICES, NEURODIAGNOSTIC TESTING, NEUROLOGY, ORTHOPEDICS, PAIN MANAGEMENT, SENIOR SERVICES, SLEEP DISORDERS, STROKE CARE, SURGICAL SERVICES, TRANSITIONAL CARE, WOMEN'S HEALTH AND WOUND CARE SERVICES. IN ADDITION TO HOSPITAL SERVICES, SACRED HEART PROVIDES AN EXTENSIVE LIST OF MEDICAL SERVICES OUTSIDE OF THE HOSPITAL TO BETTER MEET THE NEEDS OF OUR PATIENTS AND COMMUNITY POPULATIONS. A NETWORK OF PHYSICIAN PRACTICES THROUGHOUT LEHIGH AND NORTHAMPTON COUNTIES PROVIDES COMPLETE PRIMARY MEDICAL CARE TO THE REGION'S RESIDENTS. IN ADDITION TO THE PHYSICIAN PRACTICES, SACRED HEART PROVIDES ACCESS TO OUTPATIENT SERVICES INCLUDING LABORATORY, IMAGING, RETAIL PHARMACY, INFUSION, RESPIRATORY AND OUTPATIENT REHABILITATION. SACRED HEART OFFERS OUTREACH TO COMMUNITY MEMBERS IN NEED OF CARE THROUGH ITS HOME HEALTH PROGRAM REACHING PATIENTS IN THEIR HOME ENVIRONMENT AFTER HOSPITALIZATION OR MEDICAL CARE. SACRED HEART'S HOSPICE PROGRAM SUPPORTS MANY FAMILIES WITH A GOAL OF ENABLING TERMINALLY ILL PATIENTS, YOUNG AND OLD, TO LIVE LIFE TO THE FULLEST IN THEIR HOMES AMONG FAMILY AND FRIENDS. THROUGH PARISH NURSING, SACRED HEART IMPACTS FIVE CONGREGATIONS OF INDIVIDUALS, PROVIDING HOLISTIC NURSING CARE TO FAITH COMMUNITY MEMBERS ACROSS THE LIFE SPAN AND FACILITATES WELLNESS AND THE PROMOTION OF A HEALING COMMUNITY. SACRED HEART ALSO FUNCTIONS AS AN EDUCATOR FOR PARISH NURSES THROUGHOUT THE LEHIGH VALLEY THROUGH THE PARISH NURSING COALITION OF THE GREATER LEHIGH VALLEY. TO HELP ENSURE CHILDREN IN OUR COMMUNITY RECEIVE HIGH QUALITY HEALTHCARE, SACRED HEART PROVIDES CARE THROUGH FIVE SCHOOL-BASED HEALTH CENTERS. OUR GOAL FOR THE CENTERS IS TO PROVIDE ACCESSIBLE AND AFFORDABLE CHILDREN'S HEALTHCARE AND TO OFFER HEALTH EDUCATION TO THE CHILDREN AND THEIR FAMILIES. THESE CENTERS ARE HOUSED IN ELEMENTARY SCHOOLS IN THE ALLENTOWN SCHOOL DISTRICT. IN ADDITION TO SCHOOL-BASED HEALTH CENTERS, SACRED HEART OFFERS A PEDIATRIC PRACTICE TO MEET THE NEEDS OF OUR YOUNGEST CITIZENS. SACRED HEART OFFERS A DENTAL CLINIC TO MEET INCREASED NEED FOR ADULTS AND CHILDREN IN OUR COMMUNITY AS WELL AS AN OB/GYN CLINIC TO MEET THE NEEDS OF WOMEN IN OUR COMMUNITY. THROUGHOUT SACRED HEART HEALTHCARE SYSTEM 259,997 PATIENTS WERE SERVICED FROM JULY 1, 2013 TO JUNE 30, 2014. SACRED HEART HEALTHCARE SYSTEM IS COMMITTED TO PROVIDING HIGH QUALITY HEALTHCARE TO ALL PEOPLE. WE HAVE RECEIVED RECOGNITION IN MANY DIFFERENT AREAS FOR OUR EXCELLENCE IN HEALTHCARE. A SAMPLE OF THESE AWARDS AND RECOGNITIONS ARE BELOW. SACRED HEART HEALTHCARE SYSTEM IS PROUD TO OFFER RESIDENCIES AND EDUCATIONAL PROGRAMS TO PHYSICIANS AND OTHER HEALTHCARE PROFESSIONALS. WE OFFER THREE RESIDENCY PROGRAMS INCLUDING DENTAL MEDICINE, FAMILY MEDICINE, AND GERIATRIC MEDICINE RESIDENCY PROGRAMS. OUR FAMILY MEDICINE RESIDENCY PROGRAM RECENTLY RECEIVED A 4-YEAR ACCREDITATION BY THE ACCREDITATION COUNCIL FOR GRADUATE MEDICAL EDUCATION (ACGME). MOSS REHAB- ACUTE REHABILITATION UNIT, HOLDS A THREE-YEAR ACCREDITATION FOR ITS STROKE SPECIALTY INPATIENT REHABILITATION PROGRAM. MOSS REHAB'S STROKE CENTER IS ONE OF SIX EINSTEIN PROGRAMS RECOGNIZED AS CENTERS OF EXCELLENCE. CERTIFIED FOR ACUTE AND REHABILITATION CARE, MOSS REHAB HAS SPECIALTY PROGRAMS IN GAIT AND MOTION ANALYSIS, ROBOTIC-ASSISTED PHYSICAL THERAPY, AND APHASIA. SACRED HEART HOSPITAL HAS BEEN GRANTED PRIMARY STROKE CENTER CERTIFICATION BY THE JOINT COMMISSION. THE JOINT COMMISSION'S CERTIFICATE OF DISTINCTION FOR PRIMARY STROKE CENTERS RECOGNIZES CENTERS THAT MAKE EXCEPTIONAL EFFORTS TO FOSTER BETTER OUTCOMES FOR STROKE CARE. ACHIEVEMENT OF CERTIFICATION SIGNALS THAT THE SERVICES SACRED HEART HOSPITAL PROVIDES HAVE THE CRITICAL ELEMENTS TO ACHIEVE LONG-TERM SUCCESS IN IMPROVING OUTCOMES. TRANSITIONAL CARE FACILITY (TCF) RECEIVED A "FIVE STAR" RATING BY THE U.S. CENTERS FOR MEDICARE AND MEDICAID SERVICES. TCF WAS ONE OF ONLY TWO FACILITIES IN LEHIGH AND NORTHAMPTON COUNTIES TO RECEIVE THIS HONOR. THE COMMISSION ON CANCER (COC) OF THE AM CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS ALL IMAGING MODALITIES AT SACRED HEART HOSPITAL AND SACRED HEART IMAGING NORTHAMPTON HAVE BEEN AWARDED A THREE-YEAR TERM OF ACCREDITATION IN IMAGING BY THE AMERICAN COLLEGE OF RADIOLOGY (ACR). SACRED HEART PHARMACY WAS GRANTED ACCREDITATION FOR HOME INFUSION THERAPY SERVICES FROM THE COMMUNITY HEALTH ACCREDITATION PROGRAM (CHAP). CHAP IS THE LEADER IN COMMUNITY-BASED HEALTHCARE ACCREDITATION SERVICES IN THE U.S. AND IS AN ALTERNATIVE TO THE JOINT COMMISSION. CHAP IS AN INDEPENDENT AND NON-PROFIT ACCREDITING BODY. CHAP'S GOAL IS FOR HOME CARE TO NOT ONLY PROSPER BUT GAIN STRENGTH IN THE OVERALL HEALTHCARE INDUSTRY. THE VASCULAR LABORATORY HAS BEEN ACCREDITED BY THE INTERSOCIETAL COMMISSION FOR THE ACCREDITATION OF VASCULAR LABS (ICAVL) SINCE 1996 AND WAS GRANTED A THREE-YEAR RE-ACCREDITATION. SACRED HEART HOSPITAL RECEIVED THE GOLD PLUS GET WITH THE GUIDELINES-STROKE ACHIEVEMENT AWARD FOR STROKE RECOGNITION. GET WITH THE GUIDELINES-STROKE HELPS SACRED HEART HOSPITAL'S STAFF DEVELOP AND IMPLEMENT ACUTE AND SECONDARY PREVENTION GUIDELINE PROCESSES TO IMPROVE PATIENT CARE AND OUTCOMES. THE PROGRAM PROVIDES HOSPITALS WITH A WEB BASED PATIENT MANAGEMENT TOOL, BEST PRACTICE DISCHARGE PROTOCOLS AND STANDING ORDERS, ALONG WITH A ROBUST REGISTRY AND REAL-TIME BENCHMARKING CAPABILITIES TO TRACK PERFORMANCE. THE CARDIOVASCULAR REHABILITATION PROGRAM IS ACCREDITED BY THE AMERICAN ASSOCIATION OF CARDIOVASCULAR AND PULMONARY REHABILITATION (AACVPR) AND WAS GRANTED A THREE-YEAR RE-ACCREDITATION. CORE FORM, PART VI, SECTION A; QUESTION 3 THE ORGANIZATION DELEGATED CONTROL OVER MANAGEMENT DUTIES OF THE CHIEF FINANCIAL OFFICER POSITION TO AN INDEPENDENT FIRM; REGNER & ASSOCIATES, L.L.C. FOR THE FISCAL YEAR ENDED JUNE 30, 2014. AMOUNTS PAID FOR THESE SERVICES TOTALLED $456,026 AND WERE RENDERED AT FAIR MARKET VALUE RATES PURSUANT TO ARM'S LENGTH NEGOTIATIONS. CORE FORM, PART VI, SECTION B; QUESTION 11B THE ORGANIZATION IS THE PARENT ENTITY WITHIN THE SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY (ITS BOARD OF DIRECTORS) PRIOR TO THE FILING WITH THE IRS. IN ADDITION, THE ORGANIZATION'S AUDIT COMMITTEE ALSO PERFORMED A DETAILED REVIEW OF THE FEDERAL FORM 990 PRIOR TO PROVIDING IT TO EACH VOTING MEMBER OF ITS BOARD OF DIRECTORS. THE ORGANIZATION'S BOARD OF DIRECTORS HAS DELEGATED TO THE AUDIT COMMITTEE THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION AND FILING PROCESS FOR THE TAX-EXEMPT AFFILIATES OF THE SYSTEM. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S CONTROLLER AND VARIOUS OTHER INDIVIDUALS OF THE SYSTEM TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S INTERNAL WORKING GROUP, INCLUDING, BUT NOT LIMITED TO, THOSE INDIVIDUALS OUTLINED ABOVE, FOR THEIR REVIEW. THE ORGANIZATION'S INTERNAL WORKING GROUP AND OTHER INDIVIDUALS REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S INTERNAL WORKING GROUP AND VARIOUS OTHER INDIVIDUALS FOR FINAL REVIEW AND APPROVAL PRIOR TO PRESENTATION OF THE FEDERAL FORM 990 TO THE MEMBERS OF THE ORGANIZATION'S AUDIT COMMITTEE. FOLLOWING THE AUDIT COMMITTEE'S REVIEW THE FINAL FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO THE FILING WITH THE IRS. CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION HAS ADOPTED A CONFLICT OF INTEREST POLICY WHICH SETS FORTH THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND PROCESSES. ANNUALLY, ALL THOSE SERVING THE ORGANIZATION IN A FIDUCIARY CAPACITY, INCLUDING DIRECTORS, OFFICERS AND KEY EMPLOYEES RECEIVE A COPY OF THE POLICY AND ANNUAL DISCLOSURE STATEMENTS TO BE COMPLETED. IN ACCORDANCE WITH THE POLICY, THOSE DISCLOSURES ARE REVIEWED AND CONSIDERED BY THE ORGANIZATION'S PRESIDENT AND CEO AND, AS APPROPRIATE, THE BOARD OF DIRECTORS. CORE FORM, PART VI, SECTION B; QUESTION 15 ON AN ANNUAL BASIS THE HUMAN RESOURCES DEPARTMENT OF THE ORGANIZATION PROVIDES THE BOARD WITH COMPENSATION MARKET DATA TO REVIEW AND CONSIDER WITH RESPECT TO ALL KEY EMPLOYEES AND OFFICERS OF THE ORGANIZATION. THE BOARD REVIEWS THE MARKET DATA, APPROVES ANY SALARY ADJUSTMENTS FOR THE EXECUTIVE POPULATION, CONSIDERS BOTH REASONABLENESS AND EFFECTIVENESS OF ALL REMUNERATIVE PROGRAMS AND ESTABLISHES THE DETAILED PERFORMANCE EXPECTATIONS WHICH ARE INCORPORATED INTO THE ORGANIZATION'S INCENTIVE PLANS. ALL OF THESE DISCUSSIONS ARE DOCUMENTED THROUGH THE PROVISION OF MEETING MINUTES. CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE COMMONWEALTH OF PENNSYLVANIA SECRETARY OF STATE. CORE FORM, PART VII AND SCHEDULE J PART VII AND SCHEDULE J REFLECT CERTAIN BOARD MEMBERS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM A RELATED ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THIS ORGANIZATION AND RELATED ORGANIZATIONS AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF DIRECTORS. CORE FORM, PART VII, SECTION A, COLUMN B THE ORGANIZATION IS THE PARENT ENTITY WITHIN THE SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE SYSTEM INCLUDES BOTH FOR-PROFIT AND NOT FOR-PROFIT ORGANIZATIONS. CERTAIN BOARD OF DIRECTOR MEMBERS, OFFICERS AND/OR DIRECTORS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES WITHIN THE SYSTEM. THE HOURS SHOWN ON THIS FORM 990 FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENTS THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF DIRECTORS OF OTHER RELATED ORGANIZATIONS IN THE SYSTEM, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE APPROXIMATELY ONE HOUR. THE HOURS REFLECTED ON PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, PAID OFFICERS AND KEY EMPLOYEES, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF THE SYSTEM; NOT SOLELY THIS ORGANIZATION. CORE FORM, PART XI; QUESTION 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES INCLUDE: - TRANSFER FROM AFFILIATES, NET, $5,591,077. CORE FORM, PART XII; QUESTION 2 THE ORGANIZATION IS THE PARENT ENTITY WITHIN THE SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"), A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF THE TAXPAYER AND ALL AFFILIATES FOR THE YEARS ENDED JUNE 30, 2014 AND JUNE 30, 2013; RESPECTIVELY AND ISSUED A CONSOLIDATED FINANCIAL STATEMENT WITH CONSOLIDATING SCHEDULES BY ENTITY. AN UNQUALIFIED OPINION WAS ISSUED EACH YEAR BY THE INDEPENDENT CPA FIRM. THE ORGANIZATION'S AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE SYSTEM'S CONSOLIDATED FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT AUDITOR. FORM 990 PART IX LINE 11G DESCRIPTION:PROFESSIONAL FEES TOTAL FEES:2918235 FORM 990 PART IX LINE 11G DESCRIPTION:BILLING FEES TOTAL FEES:1152249 FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:6234 SACRED HEART HOSPITAL 421 W CHEW STREET ALLENTOWN PA 18102 231352208 HEALTH SVCS. PA 501(C)(3) HOSPITAL SHHS true SACRED HEART FOUNDATION 421 W CHEW STREET ALLENTOWN PA 18102 232328300 MGMT. SVCS. PA 501(C)(3) 509(A)(1) SHHS true SH REALTY CORPORATION 421 W CHEW STREET ALLENTOWN PA 18102 232384986 TITLE HLDG. PA 501(C)(2) N/A SHHS true SH ASSTD LIV PTSHP 3910 ADLER PLACE SUITE 100 BETHLEHEM PA 19017 232950059 HEALTHCARE SVCS. PA SHHS RELATED 538682 3456142 false true 0.50000 SACRED HEART ANCILLARY SERVICES INC 421 W CHEW STREET ALLENTOWN PA 18102 232384987 HEALTH SVCS. PA SHHS C CORP. 1608676 2085417 1.00000 true false false false true true false false false false false true true true false false false false true true SACRED HEART HOSPITAL E 160555 COST SACRED HEART FOUNDATION D 143080 COST SACRED HEART HOSPITAL S 5591077 COST SACRED HEART HOSPITAL L 4039093 COST SH REALTY CORPORATION L 22358 COST SACRED HEART ANCILLARY SERVICES INC L 31845 COST SACRED HEART FOUNDATION M 127388 COST SH REALTY CORPORATION K 242845 COST SCHEDULE R, PART V SACRED HEART HEALTHCARE SYSTEM ROUTINELY PAYS EXPENSES FOR VARIOUS AFFILIATES WITHIN THE SACRED HEART HEALTHCARE SYSTEM IN THE ORDINARY COURSE OF BUSINESS. THESE RELATED PARTY TRANSACTIONS ARE RECORDED ON THE REVENUE/EXPENSE AND BALANCE SHEET STATEMENTS OF THIS ORGANIZATION AND ITS AFFILIATES. THESE ENTITIES WORK TOGETHER TO DELIVER HIGH QUALITY HEALTHCARE AND WELLNESS SERVICES TO THE COMMUNITIES IN WHICH THEY ARE SITUATED.