2015-05-13T07:43:44-05:00 2014-06-30 990 2013-07-01 232367707 Lehigh Valley Hospital - Muhlenberg LEHI 4848840130 2100 Mack Blvd Allentown PA 181035622 Edward F O'Dea Sr VP Finance and CFO 6104027501 2015-05-13 2013 2016-02-25 16:41:14Z Brian A Nester 2100 Mack Blvd Allentown PA 181035622 666151851 0 X www.lvhn.org X 1985 PA Our mission is to heal, comfort and care for the people of our community by providing advanced and compassionate health care of superior quality and value, supported by education and research. 16 9 1816 447 65648 64648 602666 471859 251708770 239574035 5242882 7498103 3196308 6541482 260750626 254085479 0 0 0 0 101799296 99084447 0 0 639968 135049355 125294650 236848651 224379097 23901975 29706382 426702479 473507463 171395164 167209189 255307315 306298274 X Our mission is to heal, comfort and care for the people of our community by providing advanced and compassionate health care of superior quality and value, supported by education and research. 0 0 216403482 247593162 LVH-Muhlenberg is a non-profit corporation organized and existing under the laws of the Commonwealth of Pennsylvania, which owns and operates a general, acute patient care facility totaling approximately 882,000 square feet and operates 108 medical/surgical beds, 36 cardiac care beds, 10 universal open heart beds and 8 intensive care beds as of June 30, 2014. LVH-Muhlenberg offers a full range of inpatient and outpatient services, with the exception of obstetrics. LVH-Muhlenberg is a subsidiary of LVHN, which is LVH-Muhlenberg's sole corporate member.LVH-Muhlenberg is located on the northern edge of the City of Bethlehem. It is located at the intersection of Route 22 and Route 378 and is highly accessible from these highways with entrance/exit ramps located less than one-quarter mile from LVH-Muhlenberg. The local public transportation system, LANTA/METRO, has a bus stop located near the entrance of LVH-Muhlenberg.LVH-Muhlenberg provides a broad range of services, including the following:Acute CareAmbulatory SurgeryAnatomical PathologyBlood BankCancer ServicesCardiac CatheterizationCardiac RehabilitationCardiovascular LabChest Pain ServiceClinical Psychology ServicesCT ScannerDental ClinicDiagnostic Radioisotope FacilityDiagnostic Radiology DepartmentEchocardiography ServicesElectrocardiographyElectroencephalographyElectrophysiologyEmergency Department/Express ERGI LabHistopathologyHome HealthIndustrial RehabilitationInterventional RadiologyMagnetic Resonance ImagingMammographyNeuro Diagnostics LaboratoryNon-invasive Vascular LaboratoryNuclear MedicineOccupational HealthOccupational TherapyOpen Heart SurgeryOutpatient ServicesPain ManagementPathology(HNL Clinical and Anatomic) Pediatric Ambulatory SurgeryPediatric Specialty ServicesPerioperative ServicesPeripheral Vascular SurgeryPharmacyPhysical TherapyPodiatry ServicesPost Anesthesia Care UnitPsychiatric Inpatient UnitPsychiatric Outpatient UnitPulmonary/Vascular RehabRadiation TherapyRenal DialysisRegional Heart CenterRehabilitation ServicesRespiratory TherapySleep LabSocial Service DepartmentSpeech TherapySports MedicineStress Test LaboratoryStroke CenterTele-Intensivist ServicesThoracic SurgeryValet ServicesVascular Medicine and SurgeryVolunteer Services DepartmentUltrasoundWound CareAccreditation, Approval and MembershipLVH-Muhlenberg is currently accredited by TJC under the most recent three-year accreditation effective July 2012. LVH-Muhlenberg's facilities and services are licensed by the Pennsylvania Department of Health and have been fully certified for Medicare and Medicaid reimbursement. LVH-Muhlenberg's licenses, accreditations, approvals and memberships are as follows:Licenses and AccreditationsThe Joint CommissionDepartment of Health, Commonwealth of PennsylvaniaDepartment of Public Welfare, Commonwealth of PennsylvaniaPathology Laboratory: Bureau of Laboratories, Department of Health, Commonwealth of Pennsylvania College of American Pathologists American Association of Blood Banks HCFA, CLIA CertificationPennsylvania State Board of PharmacyPA Department of Environmental Protection, with agreement state status with Nuclear Regulatory CommissionAmerican College of RadiologyApprovalsU.S. Department of Health & Human Services - Hospital certified for participation in Health Insurance for the Aged and Disabled Program (Medicare)MembershipsAmerican Hospital AssociationHospital Association of PennsylvaniaAmerican Association of Medical CollegesCouncil of Teaching HospitalsAssociation for Hospital Medical EducationMagnet Status for Nursing ExcellenceIn August 2002, the American Nurses Credentialing Center (ANCC) granted Magnet designation to LVH and LVH-Muhlenberg, the first full-service hospitals in Pennsylvania to receive the recognition. Developed by the ANCC in 1994, the Magnet designation is the American Nurses Association's highest honor for excellence in nursing and recognizes both hospitals as national leaders in nursing education, research, patient satisfaction, quality care, job retention and the central role of nursing in the organization. Magnet designation is for a period of four years, at which time an organization must reapply. The reapplication process is intense, necessitating that hospitals demonstrate increasingly higher standards than previous applications. In 2006 and 2011, LVHN hospitals were redesignated as Magnet hospitals, continuing to demonstrate the required evidence of a practice environment in which professional nurses and interdisciplinary colleagues deliver the highest standards of quality care. Evidence associated with designation for a fourth time is due April 1, 2015. In October, 2013, Lehigh Valley Health Network was honored with the prestigious Magnet Prize for innovations in telehealth. The Magnet Prize recognizes innovative nursing programs and practices in ANCC Magnet-designated organizations. The $25,000 purse is used to continue, advance, or disseminate the winning innovation. Continued from 4(a)-Estimated Value of Free Care, Community Service, Charitable Contributions, and Professional and Community Education - Medicare Shortfall 10,007,593, Medical Assistance Shortfall 7,692,459, Uncompensated Charity Care 3,588,000, Bad Debt 5,148,406, Clinics Subsidy 794,215, CHAMPUS/Tricare Shortfall 25,226, Real Estate Taxes Paid on Owned and Leased Property 377,399, Support to City of Bethlehem Health Bureau 19,750, Physical Examinations - Firefighters & HazMat Personnel76,685, Value of Volunteer Assistance 801,593, Office of Health Systems Research and Innovation in-kind, Division of Education - Office of Student Affairs in-kind, Helwig Diabetes Center Education & Outreach Programs in-kind, Pastoral Care 114,412, Patient Representative - Press, Ganey Survey 74,368, Foreign Language & Sign Language Interpreting Service in-kind, Community Health Education Publications 109,770, Patient Education Publications 121,689, Materials to Promote Health-Related Activities 43,833, Physician Referral & Health Information Linein-kind, Community Outreach in-kind, Voluntarismin-kind, Transportation for Discharged Patients 9,814, Infection Control Community Service in-kind, Dental Screenings and Free Procedures in-kind, Library Services to the Community in-kind, Stroke Center Community Education Programs in-kind, Sleep Disorders Center Community Education in-kind, Patient Care Services - Community Service (includes support groups and other programs) in-kind, HealthWorks Workplace Safety Activitiesin-kind, Medical Education 15,914,833, Nursing Education 775,356.Total - $45,695,401 216403482 1 1 0 0 0 0 0 0 0 1 1 0 1 0 1 1 0 1 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 1 0 0 1 75 0 1 1816 1 1 1 0 0 0 0 1 1 0 0 0 0 X 16 9 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 0 PA X X X The Organization 4848840130 2100 Mack Blvd Allentown PA 181035622 Richard Fleming Honorary Trustee 1.00 X 0 0 0 William F Hecht Trustee 1.00 X 0 0 0 Matthew M McCambridge MD Trustee 60.00 X 0 369225 21809 Ronald W Swinfard MD Trustee/CEO 60.00 X X 0 1281482 41398 Kathryn P Taylor Vice-Chair 1.00 X X 0 0 0 Martin K Till Chair 1.00 X X 0 0 0 Susan C Yee Trustee 1.00 X 0 0 0 Robert J Motley MD Trustee 1.00 60.00 X 0 252900 42110 Gregory Brusko DO Trustee 1.00 60.00 X 0 441719 41398 Alison Byerly PhD Trustee 1.00 X 0 0 0 Robert M Dickler Trustee 1.00 X 0 0 0 Robert J Dillman PhD Trustee 1.00 X 0 0 0 Steven R Follett Trustee 1.00 X 0 0 0 William H Lehr Secretary 1.00 X X 0 0 0 William Mason Trustee 1.00 X 0 0 0 Jarret R Patton MD Trustee 1.00 60.00 X 0 291320 42308 Anthony P Veglia MD Trustee 1.00 X 0 0 0 Thomas V Whalen Chief Medical Officer 1.00 60.00 X 0 715432 21695 Edward F O'Dea Sr. Vice-President Finance - CFO 1.00 60.00 X 0 534968 41398 James A Rotherham VP Payer Contracting & Revenue Mgmt. 1.00 60.00 X 0 226576 32852 Theresa Sanders Pharmacy 60.00 X 133081 0 12536 Rhonda Thomas Pharmacy 60.00 X 138596 0 12221 Joseph Tomko Pharmacy 60.00 X 131957 0 19017 Courtney Vose Administration 60.00 X 135847 0 32959 Robert Murphy MD Administration 60.00 X 563049 0 41398 1102530 4113622 403099 20 0 1 0 Crothall Healthcare 13028 Collection Center Drive Chicago IL 60693 Housekeeping Services 3504788 Sodexho Inc & Affiliates PO Box 360170 Pittsburgh PA 152516170 Dietary Services 2900466 Harmelin Media 525 Righters Ferry Rd Bala Cynwyd PA 19004 Advertising Services 624504 Kadent Healthcare Corp 645 Penn Street Reading PA 19601 Collection Services 413683 Suburban EMS PO Box 3339 Palmer PA 18042 Ambulance Services 234360 10 471859 117654 471859 Outpatient Revenue 624100 143869681 143869681 Inpatient Revenue 624100 95704354 95704354 239574035 4253728 4253728 4089454 2689233 1400221 1400221 1400221 412376374 409131999 3244375 3244375 3244375 546001 245140 300861 300861 Misc. Income 900099 3689936 3689936 0 Health Network Labs 621500 1139380 1073732 65648 Lehigh Valley PHO 900003 11084 11084 4840400 254085479 247593162 65648 5954810 X 1217662 1217662 77171520 73661526 3209286 300708 2138116 1930895 189383 17838 12703905 12303586 372655 27664 5853244 5586719 243320 23205 5974 2787 3187 26524929 25380029 1144900 807720 707222 100498 327012 326036 976 553564 552538 1026 5884613 5884613 290129 285620 4509 279885 279885 5437680 5437680 12147879 12146054 1825 1837913 1837913 MEDICAL SUPPLIES 25964146 25964146 PURCHASED SERVCES 24658965 22324330 2064082 270553 BAD DEBTS EXPENSE 14250426 14250426 OTHER SUPPLIES 1375144 1375144 4948671 4948671 224379097 216403482 7335647 639968 907 1060 5286379 13739584 327015 644518 34700394 32575949 2253562 3119704 551791 502471 229431200 113343263 113990971 116087937 242166145 278810119 0 0 24428295 25186731 2997020 2839390 426702479 473507463 11697041 13292052 44118 39847 144780528 143166194 14873477 10711096 171395164 167209189 X 253166611 303757313 1582832 1969747 557872 571214 255307315 306298274 426702479 473507463 X 29706382 20884321 400256 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 65903 13342 54095 3100 9870 120370 728286 3955 38943 183 5098 765903 719801 1113 17225 -3257 13110 728286 658946 2800 65103 290 6758 719801 619853 50 44944 702 6224 657921 0.00000 0.70000 0.30000 0 0 9570642 9570642 155942146 70615211 85326935 5292452 2947856 2344596 53860478 39323280 14537198 4765482 456916 4308566 116087937 Investment-Lehigh Valley Physician Hospital Organization 4.1% 1107684 C Investment-Health Network Laboratories 14.40% 17868047 C Investment-LVHN Reciprocal Risk Retention Group 5000 C Investment-Westgate Professional Center, Inc. 6206000 C 25186731 Due to Affiliates -261121 Pension Liability 1722696 Haz Mat Remediation Liability 608425 Insurance Liability 3613567 Security Deposits 1986 SWAP Liability 5025543 10711096 X Part V, Line 4: The endowment funds are used for continuing education, scholarships, research, clinical equipment, and nursing awards. Part X, Line 2: In 2008, the Organization adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 has become part of ASC 740. FIN 48/ASC 740 establishes that the financial statement effects of a tax position taken or expected to be taken are to be recognized in the financial statements when it is more likely than not, based on technical merits, that the position will be sustained upon IRS examination. FIN 48 became effective for fiscal year 2008 for the Organization. The Organization has analyzed tax positions taken on federal income tax returns for all open tax years for the taxable entities and has determined that as of June 30, 2014, there are no uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. The Organization has analyzed specific criteria regarding the exempt 501(c) 3 status for the tax exempt entities and has determined that as of June 30, 2014 the Organization is compliant with the qualifications for exemption from Federal income tax. Golf & Tennis 353468 353468 119324 Muhlenberg Summer Festival 192533 192533 125818 546001 546001 245142 245142 300859 1 1 X 1 X 1 X 1 1 0 1 1 3588000 3588000 0.01710 16472832 8783373 7689459 0.03660 20060832 8783373 11277459 0.05370 570321 570321 0.00270 19443507 3528674 15914833 0.07570 1945795 1151580 794215 0.00380 21959623 4680254 17279369 0.08220 42020455 13463627 28556828 0.13590 1 5148406 3521401 58021710 42013475 16008235 X 1 1 1 LVHN Reciprocal Risk Retention Group Malpractice Insurance 0.16600 0.00000 0.00000 2 Health Network Laboratories LLC Laboratory Services 0.15000 0.00000 0.00000 3 Health Network Laboratories LP Laboratory Services 0.13770 0.00000 0.00000 4 Lehigh Valley Physician Hospital Organization Inc Health Care Services 0.05000 0.00000 0.00000 1 1 Lehigh Valley Hospital - Muhlenberg 2545 Schoenersville Road Bethlehem PA 18017 www.lvhn.org 134601 X X X X X Lehigh Valley Hospital - Muhlenberg 1 1 X X X X X X X X X 12 1 1 1 X www.lvhn.org X X X X X X X X X X 0 0 1 1 200.000000000000 1 400.000000000000 1 X X X 1 1 X X X X X X 1 X 0 1 X 0 0 Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 3: The Council's community needs assessment focused on the health status of the Lehigh Valley (Lehigh and Northampton Counties). The CHNA approach incorporated best practice standards as recommended by the American Public Health Association and the Association for Community Health Improvement of the American Hospital Association. The Council employed several health assessment techniques that used both qualitative and quantitative data. The assessment began by using existing community health measures from, but not limited to, the Centers for Disease Control and Prevention (CDC), US Census Bureau, Dartmouth Atlas of Healthcare, Pennsylvania's Department of Health, and the University of Wisconsin's County Health Rankings. Community input was elicited through health opinion surveys, social reconnaissance with 84 key community members, and interviews with leading health experts. Findings from these efforts comprised a community health profile.Community dialogues were conducted using a Community-Based Participatory Research (CBPR) approach in two federally-designated medically underserved areas. The dialogues were facilitated by a national expert in CBPR in four 3-hour sessions with 170 community members in attendance. The findings from the Community Health Profile were discussed at length. These findings were strongly corroborated by the community members and stakeholders, who listed mental health, oral health, health disparities, racism, poverty, unhealthy lifestyles, poor education, and limited access to care as major barriers to health. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 4: The Health Care Council of the Lehigh Valley includes representation from Lehigh Valley Health Network, Good Shepherd Rehabilitation Network, Sacred Heart HealthCare System, Saint Luke's University Hospital and Health Network, KidsPeace Psychiatric Hospital, and The Dorothy Rider Pool Health Care Trust. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 5d: The Community Health Needs Assessment was mailed to key community leaders and was provided press coverage in the community newapaper and local television station. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 7: The CHNA conducted in tax year 2012 was approved by the LVHN Board of Trustees in August 2013. During the nine months until June 30, 2014 all of the needs were addressed and separated into four major priority areas: 1. Improve access to quality health care, 2. Enhance the collection and dissemination of health information, 3. Address social determinants of health and health disparities, and 4. Promote Healthy Lifestyles and Behaviors.While not all of these priorities were specifically addressed during the first fiscal year after the CHNA was conducted many have been implemented and are continuing to be addressed. Following are some of the initiatives from the CHNA, implemented during fiscal year ended June 30, 2014:Priority 1 - Improve access to quality health care Expand access to the following services: Patient-centered medical homes - LVHN's PCMH initiative has expanded to include additional practices,increased number of CCT's, and a focused effort on practice renovation. Relationship with Valley Youth House School-based health centers Telehealth services Health centers in the community LVHN health centers have expanded to 12, including several with express care services. Expand efforts to remove barriers to accessing care, including: Assistance with Medicaid applications LVHN offers services to patients that assist them with Medicaid applications Use of interpreter services Community Exchange expanded support for interpreter services, enrolling 69 in the education program, and providing services for 457 patients. Counteract low health literacy with easy-to-follow instructions on how to better access care Use of EMMI throughout the Network Improve access to mental health services Review successful national and state mental health improvement models, with a focus on depression, addiction screenings and recovery from addiction, and prevention of mental health disorders. Evaluation team completed comprehensive review of the literature by June 2014. Improve access to oral care Have oral care available through school-based services (such as dental sealants), dental vans, and the dental clinic at the 17th street campus. Miles for Smiles dental van and Community Health's Dental Sealant program. Support and assist the newly formed federally qualified health center of the Neighborhood Health Centers of the Lehigh Valley (NHCLV) as they develop and expand oral health services. Business plan developed for NHCLV. Priority 2 - Enhance the collection and dissemination of health informationCollection of health data needed for improved population health: Create and implement a data-sharing agreement document for HCCLV organizations Use "hotspotting" techniques to identify clusters of disease/illness concentration and super-utilizers of health care services. Used this technique to examine teen births, and in the asthma patient profile. Continue to use community-based participatory research techniques to collect important qualitative data regarding health. Using CBPR to collect and analyze health data - childhood obesity. Ensure data analyses are available to clinical departments and community members Presented several reports/analyses at the Maternal Child Workgroup and Health Care Council.Improve the quality and appropriateness of health information for community members with a focus on those most vulnerable to low health literacy: Continue to develop adaptations in clinical settings (easy to read written information, "teachback" training for clinicians.) Increase the number of trained community health workers with an active presence in the community benefits service area. Developed a proposal to expand CHW's as a collaborative with AmeriHealth Mercy. Continue community health education programs/publications that address health disease, cancer, stroke, lung disease, injury-violence, and diabetes. Expand the use of CBPR as a technique to disseminate important data regarding health.Using CBPR as part of the childhood obesity initiative.Priority 3 - Address social determinants of health and health disparities Actively participate in neighborhood/community groups negatively impacted by health disparities. Allentown Promise Neighborhood Assisted in the design of a survey tool which was administered house to house in the neighborhood. Provided training for the community liaisons and ambassadors for the neighborhood. Findings presented at the State of APN address in January. Also presented the findings to the Major. Develop effective community engagement models that help to identify factors that contribute to poor health and approaches that may effectively address disparities Developing a community resource database Use community health workers, nurse family partnerships and other community outreach professionals in neighborhoods negatively impacted by health disparities CHW's conducting home visits for children with asthma. Provide health-related classes, workshops, and trainings identified by community members to improve the overall health of the neighborhood/community. Community Exchange members providing ongoing Wellness classes such as yoga, nutrition, and massage therapy. Conduct neighborhood level health assessments in areas negatively impacted by health disparities. The APN survey was developed and conducted. Incorporate concepts like Healthy Homes and home visitation programs to address health disparities such as pediatric asthma and early childhood development. Asthma home visitation underway. Continue to develop and expand stakeholder partnerships (school districts, county government, local business and funders) Developed stakeholder partnership with Saint Luke's and other community agencies around young pregnant women and children.Priority 4 - Promote Healthy Lifestyles and BehaviorsSupport local public health department efforts Community-based education activities that reach residents in a more accessible manner with less transportation and financial barriers Coordinate and expand pre-natal, healthy baby, and maternal child services for parents and children who live in our most vulnerable communities. Working on these strategies with the Maternal-Child Workgroup.Integrate healthy lifestyle efforts into clinical setting Link community health workers and other community-based health professionals with primary care practices serving vulnerable populations. CHW's deployed in the Pediatric Clinic. We are also providing asthma education in the elementary schools in the ASD. Develop support teams (e.g., community care teams) to provide important links and resources for patients Community Care Teams expanded for primary care practices. Offer dietary and nutritional consultations and support for patients with weight issues that impact health Offered through our Weight Management Center Offer cessation support for patients trying to quit using tobacco products Tobacco cessation services available through the NetworkSupport time-banking strategies that facilitate residents having support systems and friendships Community Exchange Timebanking has been providing a host of activities that can benefit its members as well as the community that are designed to foster cohesiveness and social support networks both on an individual and organizational level. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 16e: Collection activities are limited to hospital sending four statements requesting payment. The statements include information about the hospital's Financial Assistance Policy, soliciting the patients participation in the Financial Assistance Program. Part I, Line 6a: The Community Benefit Report is issued by Lehigh Valley Health Network - EIN 22-2458317, the parent company of Lehigh Valley Hospital - Muhlenberg. Part I, Line 7: The costing methodology is cost to charge ratio for programs with gross charges and direct costs for programs without gross charges. Part I, Line 7g: The clinics subsidy of $794,215 is the difference between the cost of services provided in the hospital clinics and the payments received for those services. The clinics at LVH-Muhlenberg include the dental clinic that is operated in conjunction with the dental residency program, and the outpatient mental health clinic (Base Service Unit) which provides evaluation, counseling and case management services to residents of Lehigh and Northampton counties. The Clinics Subsidy does not include the cost of any Uncompensated Charity Care as reported above. Clinic costs do include $31,239 of the wage and benefits expense of dental residents who provided care to clinic patients. This amount has been deducted from the total value of medical education,which is presented later in this document. Part I, Ln 7 Col(f): The costing methodology for bad debt expense is the Medicare cost to charge ratio. The ratio of uninsured charges written off as charity was applied to total charges written off as bad debt to estimate the portion of bad debt that is attributed to patients under the hospital charity policy. Part III, Line 4: BAD DEBTS-In instances where the Organization believes a patient has the ability to pay for services and, after appropriate collection effort, payment is not made, the amount of services not paid is written-off, at charges, as bad debts. Amounts recorded as bad debts expense do not include charity. The amount of bad debts expense for the years ended June 30, 2014 and 2013, at charges, was $14,250,000 and $24,489,000 respectively, and is reported as Bad debts expense on the Combined Statements of Operations. Part III, Line 8: The source of the Medicare allowable costs relating to revenue received from Medicare is the FY '14 Medicare Cost Report. The revenue and expenses are both determined using Medicare principles. The hospital is providing the community a benefit in excess of Medicare payments. Part III, Line 9b: Financial Counseling staff will determine whether patients meet eligibility criteria for financial assistance. Accounts that do not meet the eligiblilty requirements will be referred to an external receivables follow up agency, and if not paid referred to a collection agency and subsequently transferred to bad debt status if the accounts remain unpaid. Part VI, Line 2: The Health Care Council of the Lehigh Valley (HCCLV) used quantitative and qualitative methods to identify both the major causes of death and illness, and the barriers to improving the health and well-being of community residents. The HCCLV's approach has incorporated best practice standards recommended by the American Public Health Association and the Association for Community Health Improvement. These procedures included using multiple data sources and input from stakeholders including community organizations and community members. Quantitative data were collected from The Centers for Disease Control, US Census Bureau, Dartmouth Atlas of Healthcare, Pennsylvania Department of Health's Vital Statistics and County Profiles, University of Wisconsin's County Health Rankings, National Cancer Institute State Cancer Profiles, Institute for People, community opinion surveys, and a Lehigh Valley disability survey. Qualitative data were collected using community focus groups and social reconnaissance, a process that intensely examined community dynamics with regards to health. Part VI, Line 3: Consistent with the mission and values of Lehigh Valley Health Network, it is the policy to provide medical care to all individuals without regard to their ability to pay for services. The Financial Assistance Policy applies to uninsured and under-insured individuals who participate in the process to evaluate their ability to pay for LVHN services.Patients are identified by LVHN registration, Benefits and Verification, Customer Service, and Financial Counselors as being in financial need. The Financial Counselors help patients complete the application for Financial Assistance. LVHN follows the Federal Poverty Guidelines to evaluate eligibility. Patients whose family income falls bellow 200% of the Federal Poverty guideline will have their entire balance forgiven for their qualifying services at a participating LVHN provider. Patients with a family income below 400% of the Federal Poverty guidelines will have a portion of their balance forgiven for qualifying services at a participating LVHN provider. Patients are evaluated for no cost or reduced premium insurance plans. The LVHN Financial Counselors will offer information to patients who are interested in seeing if they qualify for these programs offered by commercial insurance companies.Patients often express financial concern or need by contacting the LVHN Customer Service departments. The Customer Service representatives explain the programs available; Financial Assistance and support in applying for Medical Assistance or insurance through the Federal Health Insurance Exchange. Patients will be referred to the Financial Counselors who work with patients to apply for Pennsylvania Medical Assistance. The Financial Counselors are located onsite. The Financial Counselors visit patients in their inpatient rooms, in the Cancer Center, and in the Emergency Department. In addition, LVHN advertises Financial Assistance in the local newspaper, on our public website and on the statements sent to our patients. Part VI, Line 4: The primary service area of LVH-Muhlenberg is comprised of seventeen (17) zip codes located primarily in eastern Lehigh County and western Northampton County. Most are within a ten-mile radius of LVH-Muhlenberg Based on U.S. Census Bureau data for the year 2010 census, the population of the primary service area was approximately 413,156 people. During fiscal year 2014, approximately 80% of the discharges from LVH-Muhlenberg were residents of the primary service area. According to the American Community Survey (U.S. Census) the estimated population for the three county area in 2013 was 432,282.The 2010 population of the secondary service area was approximately 294,855. During fiscal year 2014, approximately 12% of the discharges from LVH-Muhlenberg were residents of the secondary service area. Based on U.S. Census Bureau data, the current population of the combined primary and secondary LVH-Muhlenberg service areas is projected to increase approximately 5.4% (CAGR* - .59%) by the year 2018, based on the extrapolation of the population CAGR from Census year 2000 - 2010. During fiscal year 2014, 8% of the discharges from LVH-Muhlenberg were residents outside the primary and secondary service areas. Part VI, Line 5: Lehigh Valley Hospital - Muhlenberg qualifies as an Institution of Purely Public Charity in Pennsylvania. This regulation is referred to as Act 55. To be considered a purely public charity, nonprofits must: (1) advance a charitable purpose; (2) donate or render gratuitously a substantial portion of its services; (3) benefit a substantial and indefinite class of persons who are legitimate subjects of charity; (4) relieve the government of some burden; and (5) operate entirely free from private profit motive.LVHM is required to reapply for this charitable status every five years and currently qualifies through February 28, 2016. 0 1 0 0 0 0 0 0 0 Matthew M McCambridge MD Trustee 0 308253 0 65007 0 -4035 0 0 0 21809 0 391034 0 0 Ronald W Swinfard MD Trustee/CEO 0 992285 0 0 0 289197 0 0 0 41398 0 1322880 0 0 Robert J Motley MD Trustee 0 237980 0 4000 0 10920 0 0 0 42110 0 295010 0 0 Gregory Brusko DO Trustee 0 409250 0 8000 0 24469 0 0 0 41398 0 483117 0 0 Jarret R Patton MD Trustee 0 224883 0 56627 0 9810 0 0 0 42308 0 333628 0 0 Thomas V Whalen Chief Medical Officer 0 587854 0 0 0 127578 0 0 0 21695 0 737127 0 0 Edward F O'Dea Sr. Vice-President Finance - CFO 0 449836 0 0 0 85132 0 0 0 41398 0 576366 0 0 James A Rotherham VP Payer Contracting & Revenue Mgmt. 0 228969 0 0 0 -2393 0 0 0 32852 0 259428 0 0 Rhonda Thomas Pharmacy 140646 0 200 0 -2250 0 0 0 12221 0 150817 0 0 0 Joseph Tomko Pharmacy 131318 0 0 0 639 0 0 0 19017 0 150974 0 0 0 Courtney Vose Administration 138855 0 0 0 -3008 0 0 0 32959 0 168806 0 0 0 Robert Murphy MD Administration 435609 0 96987 0 30453 0 0 0 41398 0 604447 0 0 0 Part I, Line 4b Robert Murphy, MD 35,394 Gregory Brusko, DO 24,090 Ronald W. Swinfard, MD 286,338 Jarret Patton, MD 16,619 James A. Rotherham 11,248 Thomas V. Whalen 119,184 Edward F. O'Dea 89,512 Robert J. Motley 13,629 These amounts are accruals to a nonqualified supplemental executive retirement plan. A Lehigh County General Purpose Authority 911886539 52480GAY0 2008-06-04 18876416 construct, renovate & equip facilities 0 0 0 B Lehigh County General Purpose Authority 911886539 52480GBG8 2011-04-01 54648270 refund 9/12/96 & 4/21/99A issues; reissuance of 7/7/05 and 6/5/08 issues 0 0 0 C Lehigh County General Purpose Authority 911886539 52480GCB8 2012-12-12 75067274 construct, renovate & equip facilities; refund 10/17/01 and 5/21/03 issues 0 0 0 A 1591200 18932776 247575 464911 18220290 2010 0 0 1 1 B 3691020 54648270 54528750 119520 2011 1 0 1 1 C 75067274 58470214 896598 15700000 461 2012 1 1 1 1 A 0 0 1 0 0 0 0 0 0 B 0 0 1 0 1 1 Merrill Lynch & Goldman Sachs 20.000000000000 0 0 0 0 0 C 0 0 1 0 0 0 0 0 0 0 0 Kathryn P Taylor-Trustee Board Member of Capital Blue Cross - Trustee of LVHN/LVH/LVHM 32539431 See Part V - Capital BlueCross is a third party insurer doing business with LVHN. 0 Susan C Yee-Trustee Partner in 94 Brodhead Associates - Trustee of LVHN/LVH/LVHM/LVHH/HWC 120572 See Part V - 94 Brodhead Associates leases office space to LVHN at fair market rates. 0 John D Stanley - Trustee Senior Vice-President of Air Products and Chemicals, Inc. - Trustee of LVHN See Part V - Air Products and Chemicals, Inc. provides products and services to LVHN entities. 0 X 9693 Fair Market Value X 15 4079 Cost X Pathway to Sa 157 36060 Cost X Gift Cards/Ti 43 8548 Fair Market value 0 0 0 Form 990, Part VI, Section B, line 11 The process to review the 990's includes: Draft 1 of the returns is reviewed in detail with a focus on accuracy, completeness, and perspective by the LVHN Controller and the LVHN Corporate Legal Counsel. Draft 2 of the returns is reviewed by the Chief Financial Officer. All Compensation disclosures are reviewed by the Director - Compensation - Human Resources. Draft 3 of the returns is reviewed together with the President & CEO, the Chief Financial Officer, the Controller and the Director-Tax. Final Returns are reviewed with LVHN Executive Committee of the Board of Trustees prior to their filing. Form 990, Part VI, Section B, line 12c Pursuant to the LVHN policy titled "Avoidance of Conflict of Interest/Commitment", the VP of Internal Audit and Compliance Services (Chief Compliance Officer or CCO) issues reminders to Board Members and members of the Senior Management Council to submit updated conflict of interest questionnaires; and (2) notifies members of the Senior Management Council (SMC) to identify and request completed conflict of interest questionnaires from individuals who report to them or have responsibilities that affect their operations and who have potential conflicts of interest and to provide her with the identity of those individuals. Compliance Services tracks completion of the updated questionnaires and sends reminders to those who have not yet submitted them, as the deadline for completion approaches. The CCO follows up with trustees and members of the SMC who have not submitted a completed questionnaire by the deadline in an effort to ensure that questionnaires are on file for all to whom the policy applies. All physicians on LVHN's medical staff are also required to complete a conflict of interest questionnaire annually. Medical Staff Services monitors this process to ensure that all physicians comply. Potential conflicts are managed by the LVHN Conflict of Interest Committee and by the Board of Trustees, if necessary, depending on whose interest(s) pose the conflict and the nature of the conflict. Form 990, Part VI, Section B, line 15 The Executive Compensation Committee ("Committee") of the Board of Trustees of Lehigh Valley Health Network ("LVHN") is authorized to perform its functions for and on behalf of LVHN. The purpose of the Committee is to discharge the obligations of the Board of Trustees relating to the oversight and approval of Senior Management Council compensation and their ongoing professional development in accordance with applicable rules and regulations. Committee Organization: 1. The Committee shall be composed of at least four (4) members of the Board of Trustees, one of whom shall serve as Chair of the Committee. The Committee shall be composed entirely of Trustees who are entirely disinterested members of the Board. The Trustees will have no material relationship to LVHN and/or its Senior Management Council members that may limit their disinterestedness in this role, including that the Trustees (i) must not have any personal interest in the compensation arrangement, (ii) must not be related to or under the control of the person whose compensation is being evaluated, and (iii) must have no material business relationship with LVHN. If a proposed member of the Committee has identified a potential conflict of interest, the issue shall be reviewed by the disinterested members of the Audit and Compliance Committee which shall report its findings to the Chair of the Executive Compensation Committee. Based on that review, the Chair and the Committee, absent the member with a potential conflict, will make the final determination as to the disinterestedness of the Trustee and the appropriateness of service. From time to time, there may be specific situations which pose a potential conflict of interest. In such instances, the Committee will make the appropriate determination. The Committee may also establish such other procedures as it may deem appropriate with respect to the disinterested status of its members, subject to Board approval. 2. The members and the Chair of the Committee shall be appointed each year by the Board of Trustees in accordance with its policies, and shall serve at the pleasure of the Board of Trustees for such term or terms as the Board of Trustees may determine. The Committee shall conduct its activities in conformity with the requirements of the LVHN By-Laws and the requirements of the Internal Revenue Code of 1986, and Regulations promulgated thereunder, together with any further obligations or requirements as directed by the Board. 3. Each Committee Member shall have the following qualifications: Ability to critically review performance and market practice data and apply relevant information fairly, while properly balancing the competing needs of LVHN's stakeholders. Ability to consider the objectives of linking compensation to performance and retaining high-performing personnel, all in the best interests of LVHN and in accordance with its charitable mission. An understanding of the market place regarding the attraction and retention of Senior Management Council employees and other key personnel. Functions, Duties and Authorities: The Committee on an annual basis shall: Assess the performance of the President/Chief Executive Officer, determine the President/Chief Executive Officer's compensation, discuss the appraisal with the President/Chief Executive Officer and report its determination generally to the full Board. Review the performance of all other members of the Senior Management Council and approve their compensation considering the recommendations of the President/Chief Executive Officer, and report its determinations generally to the full Board. Review the performance of disqualified persons and other individuals in key leadership positions as determined by the Committee. Review the succession plan and professional and career development of senior management in the organization. Review the compensation plan for selected physicians, including LVPG. Assure that any applicable Senior Management Committee Member's compensation arrangement (new hire, transfer, promotion or demotion) is reviewed and approved in advance by the Committee in accordance with all applicable rules and regulations, including Section 4958 of the Internal Revenue Code or its successor. In particular, the Committee intends that its determinations qualify for the "Rebuttable Presumption of Reasonableness" and thus it will ensure that: A compensation arrangement is approved in advance only by Committee members who do not have a conflict of interest with respect to the arrangement, It relies upon appropriate, independent comparability data prior to making its determination, and The basis for the determination is adequately documented concurrent with the Committee's approval. Adequate documentation requires (i) the terms of compensation, (ii) date of approval, (iii) members present, (iv) the source of comparability information and the data, (v) rationale for compensation levels that fall at the upper end of the comparability data, and (vi) any actions taken with respect to conflicts of interest of any member of the Committee. The documentation must be prepared by the later of the next meeting of the Committee or 60 days after final action and approved within a reasonable time thereafter. The Committee, with respect to the administration of the Retirement, Severance and Health & Welfare Plans shall: Appoint the Plan Administrator Delegate the day-to-day functions of plan administration to the Plan Administrator. Specifically these delegated duties shall include: convene a pension administration committee compliance with ERISA and IRS documentation and reporting requirements oversight and management of the benefit claims appeal process preparation and distribution of disclosures to Plan participants provide an annual report which include plan administration activities of the retirement, severance and health and welfare plans. Make recommendations to the LVHN Board regarding Retirement Plan design. Specific responsibilities shall include: reviewing and making recommendations on the benefit structure, the Plan Document or Trust Agreement; review and recommend additions or deletions of organizational divisions covered by the Plan. The Committee shall also: Consider and make recommendations to the Board regarding the compensation philosophy for the Senior Management Council. Annually evaluate the performance and function of the Committee, including a review of its compliance with this Charter. Direct the establishment of a process that ensures compensation information is fully and fairly disclosed on the Form 990. Discharge such additional duties and responsibilities as the Board of Trustees may from time to time assign to it. Form 990, Part VI, Section C, line 18 Anothers Website - Guidestar. Upon request - hard copies with senior management and marketing. Form 990, Part VI, Section C, line 19 The Organization makes its financial statements available to the public through its Annual Report to the community. The Annual Report is distributed to all attendees at the Organizations annual public meeting. In addition, it is distributed via mail to members of the community. The Organizations governing documents and conflict of interest policy are not made available to the public. Form 990, Part IX, line 11g Lab Test Fees: Program service expenses 13,617,399. Management and general expenses 0. Fundraising expenses 0. Total expenses 13,617,399. Physician Fees: Program service expenses 7,928,285. Management and general expenses 0. Fundraising expenses 0. Total expenses 7,928,285. Other Fees : Program service expenses 3,834,345. Management and general expenses 1,144,900. Fundraising expenses 0. Total expenses 4,979,245. Form 990, Part XI, line 9: Change in net realized gains/losses - restricted funds 400,256. Form 990, Part XI, Line 2c The Audit Committee of the Board of Trustees assumes responsibility for oversight of the audit and selection of an independent auditor. Form 990, Part VI, Line 16b Although the organization does not have a written policy with respect to evaluation of participation in joint venture arrangements, no joint venture is entered into without having had the transactional documents reviewed and evaluated by outside counsel and, if necessary, consultants and accountants to assure that the arrangement does not, in any manner, compromise the organization's exempt status and mission. Form 990, Part VII, Line 1a Hours worked by these individuals reflect the combined hours spent as a Board Officer and an Employee of the organization. All compensation, benefits, etc. reported are for work as a member of senior management of the organization. The remainder of the officers, trustees, listed above are volunteers and receive no compensation. Lehigh Valley Health Network 1200 S Cedar Crest Blvd Allentown PA 18103 222458317 Parent Company PA 501(c)(3) Line 11c, III-FI N/A 0 Lehigh Valley Hospital 1200 S Cedar Crest Blvd Allentown PA 18103 231689692 Health Care Organization PA 501(c)(3) Line 3 Lehigh Valley Health Network 0 Lehigh Valley Physician Group 1200 S Cedar Crest Blvd Allentown PA 18103 232700908 Physician Practice Organization PA 501(c)(3) Line 9 Lehigh Valley Health Network 0 Muhlenberg Realty Corporation 1200 S Cedar Crest Blvd Allentown PA 18103 232245513 Real Estate Rentals PA 501(c)(3) Line 11c, III-FI Lehigh Valley Health Network 0 Lehigh Valley Health Network Realty Holding Co 1200 S Cedar Crest Blvd Allentown PA 18103 232586770 Real Estate Holding Co. PA 501(c)(2) Lehigh Valley Health Network 0 LVHN Reciprocal Risk Retention Group 151 Meeting Street Ste 301 Charleston SC 29401 200037118 Insurance PA Lehigh Valley Health Network Related 3032203 0 0 Health Network Laboratories LLC 2024 Lehigh Street Allentown PA 18103 232932802 Laboratory Services PA Lehigh Valley Hospital Related 146250 0 0 Health Network Laboratories LP 2024 Lehigh Street Allentown PA 18103 232948774 Laboratory Services PA Lehigh Valley Hospital Related 1153593 22216705 0 0 Lehigh Magnetic Imaging Center 1230 S Cedar Crest Blvd Allentown PA 18103 232429077 Imaging Center PA N/A Lehigh Valley Imaging LLC 1200 S Cedar Crest Blvd Allentown PA 18103 464551937 Imaging Center PA N/A Lehigh Valley Health Services Inc 2100 Mack Blvd Allentown PA 181035622 232263665 Health Care Related Services PA N/A C 0 Lehigh Valley Anesthesia Services PC 2100 Mack Blvd Allentown PA 181035622 233096124 Anesthesia Services PA N/A C 0 Westgate Professional Center Inc 2100 Mack Blvd Allentown PA 181035622 231657333 Real Estate Rentals PA Lehigh Valley Hospital - Muhlenberg C -82274 5371433 1.00000 0 Lehigh Valley Physician Hospital Organization Inc 2100 Mack Blvd Allentown PA 181035622 232750430 Health Care Related Services PA Lehigh Valley Hospital C 0 Hazleton Saint Joseph Medical Office Building Inc 700 E Broad St Hazleton PA 18201 232500981 Medical Office Rental PA Northeastern Pennsylvania Health Corporation C 0 1 0 0 1 1 0 0 0 0 1 1 1 1 1 1 1 1 0 0 Westgate Professional Center Inc K 66000 Fair Market Value