2015-06-24T10:08:25-05:00 2014-08-31 450250958 Eide Bailly LLP 800 Nicollet Mall Suite 1300 Minneapolis MN 554027033 990 2013-09-01 411456897 HealthEast St John's Hospital HEAL 6512321000 PO Box 64624 St Paul MN 551640624 Doug Davenport SVP/CFO 6512322300 2015-06-22 1 Kim Hunwardsen P00484560 6122536500 2015-06-22 2013 2016-04-25 22:37:26Z Kathryn Correia 559 Capitol Blvd St Paul MN 55103 281427199 0 X www.healtheast.org X 1983 MN HealthEast St. John's Hospital is an acute care hospital. 16 14 1876 435 283748 -2671 96472 769039 276631625 279122649 1553546 1473029 2020163 1200 280301806 281365917 0 0 0 0 111454245 111013694 0 0 0 134971706 141115053 246425951 252128747 33875855 29237170 115969832 123175225 35338869 36231785 80630963 86943440 X Rooted in Judeo-Christian values, our mission is high quality, compassionate, cost effective health care for the communities we serve. 0 0 207552809 279122649 HealthEast St. John's Hospital is a full-service, acute care hospital offering superior diagnostic and therapeutic care to the community for more than 95 years. As a full service, acute care facility, St. John's is committed to providing superior health care to our growing communities. This 184-bed facility offers a wide variety of diagnostic and therapeutic services, including the following: *Emergency Care *Maternity Care *Heart Care *Orthopaedic Care *Medical/Surgical *Critical Care (ICU) *Cancer Care Center *Radiology Care *Breast Care Center *Rehabilitation *Robotic Surgery *Stroke Care *Medical Laboratory From the moment patients and visitors walk into St. John's, they experience the warm, inviting atmosphere created by the physical environment and the caring, personal services offered by our staff. As a hospital dedicated to a growing community, caring for patients is the highest priority for the physicians, nurses and staff at St. John's. Patients trust the hospital to provide advanced treatments and services with a caring, personal touch. State-of-the-art technology, specialized physicians, nurses and staff, and a wide range of services combine seamlessly with St. John's innovative healing environment and personal, compassionate health care delivery. St. John's Hospital FY 2014 Statistics: *Hospital Inpatient Admissions: 12,156 *Births: 2,837 *Outpatient Visits: 111,650 *Emergency Department Visits: 36,130 HealthEast St. John's services listed above support the hospital's health care mission to provide high quality, cost effective compassionate health care for Twin Cities east metro residents. Hospital revenue includes payment from the Medicare and Medicaid programs. The medical services relate directly to the exempt purpose of caring for sick, infirm, aged and injured persons regardless of their race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local commission, disability, sexual orientation, gender identity or expression, age or genetic information. HealthEast seeks to be a welcoming and inclusive provider of care providing optimal health and well-being for our patients, our communities and ourselves. This organization provides emergency and medically necessary non-emergency services regardless of ability to pay. Additionally, this organization offers financial aid for eligible services in the form of free or discounted care to those low income, underinsured or uninsured individuals who meet qualification criteria. St. John's Hospital is part of the HealthEast Care System. The HealthEast Care System is a community-focused, non-profit health care system that provides innovative technology, compassionate care and a full spectrum of family health services. In 1986, the leaders of seven hospitals in St. Paul blended their Baptist, Roman Catholic and Lutheran cultures to become HealthEast Care System, united in pursuit of a common mission built on Judeo-Christian values. Today, HealthEast Care System includes three short-term acute hospitals and one long-term acute care hospital, as well as 14 clinics, outpatient services, home care, hospice, medical transportation and community outreach programs. Practicing financial responsibility, HealthEast Care System is one of the largest, locally-owned health care organizations in the St. Paul/Minneapolis East Metro area. *Mission: Rooted in Judeo-Christian values, our mission is high-quality, compassionate, cost effective health care for the communities we serve. *Values: HealthEast Care System values originate in the tradition of its sponsor organizations, forming the foundation for the Mission and Vision of the HealthEast Care System. *Life: Life is a gift to be valued highly. *Compassion: Caring attends to physical, emotional and spiritual dimensions of persons. *Respect: Each person is unique and deserving of respect. *Community: We exist to serve our community. *Vision: Optimal health and well-being for our patients, our communities and ourselves. *Milestone Goal: Building on our benchmark performance, HealthEast will be a national leader in clinical quality, patient experience and cost effectiveness - the best value - by 2015. HealthEast Care System fiscal year 2014 statistics: *Total Hospital Inpatient Admissions: 31,654 *Total Outpatient Visits: 220,602 *Total Emergency Department Visits: 86,643 *Lab tests: over 2 Million *Home Care Patients Served: 8,316 *Home Care Patient Visits: 71,076 *Health Alert Subscribers: over 3,400 *Primary and Specialty Care Professional Visits: 1,074,656 *Primary and Specialty Care Ancillary Services: 1,342,419 *Total Clinic Patients: 154,030 *Patient Transports: 35,898 *Employees: 6,825 *Volunteers: 1,258 207552809 1 1 0 1 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 0 0 1 X 0 0 1876 1 1 1 0 0 0 0 0 0 0 0 0 X 16 14 1 0 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 MN X Doug Davenport 6512322300 559 Capitol Boulevard St Paul MN 55103 X Diane M Berthel Director 0.00 2.00 X 0 35000 0 Julie S Causey Director 0.00 2.00 X 0 30000 0 Michael R Connly Director 0.00 2.00 X 0 23000 0 Patrick J Donovan Director, ended 12-2013 0.00 2.00 X 0 35000 0 John R Finnegan Jr PhD Director 0.00 2.00 X 0 26833 0 Fred Harris Jr Immediate Past Chair 0.00 2.00 X X 0 65000 0 Roland L Hayes Chair 0.00 2.00 X X 0 40000 0 Louis C Henry Jr Director 0.00 2.00 X 0 28000 0 Anne M Pearson MD Director 0.00 42.00 X 0 327935 42745 Leonard M Randolph Jr MD Director 0.00 2.00 X 0 27833 0 Sister Marie H Seiter CSJ Director 0.00 2.00 X 0 0 0 Jone M Tiffany Director 0.00 2.00 X 0 28667 0 Laure Waschbusch MD Director 0.00 2.00 X 0 30000 0 Wayne A Sensor Director, began 1-2014 0.00 2.00 X 0 0 0 James W Wiltz Director 0.00 2.00 X 0 24000 0 Kathryn G Correia President/CEO 0.00 40.00 X X 0 1032779 158137 Howard P Kern Director, began 1-2014 2.00 0.00 X 0 0 0 Daniel Kaye Interim VP/CFO-HECS, ended 3-2014 0.00 40.00 X 0 536420 7650 Douglas Davenport SVP/Chief Financial Officer, began 3-2014 0.00 40.00 X 0 0 0 Scott L North SVP, President Acute Care 40.00 0.00 X 549794 0 90323 Catherine J Barr SVP Commuity Services, President Bethesda Hospital 0.00 40.00 X 0 449278 66345 Thomas A Schmitt SVP ACO/Clinics/Outpaitent 0.00 40.00 X 0 415652 79359 Julie A Schmidt SVP CAO 0.00 40.00 X 0 548836 78971 Stephen J Kolar MD SVP CMO 0.00 40.00 X 0 596919 113293 Joanne M Sunquist SVP/Chief Information Officer 0.00 40.00 X 0 366110 65948 Michael McMahan VP Acute Care Operations 0.00 40.00 X 0 261478 37806 Debra J Hurd VP Acute Care Nursing 40.00 0.00 X 286630 0 51909 John Kvasnicka MD VP/Executive Medical Director 40.00 0.00 X 479527 0 94049 Paul J Sovell MD Physician 40.00 0.00 X 385896 0 69013 Peter J Tanghe MD Physician 40.00 0.00 X 341978 0 40178 Eric Roth MD Physician 40.00 0.00 X 352568 0 48404 Paul M McCormick MD Physician 40.00 0.00 X 325894 0 45954 Michael F Nass Former Officer 0.00 0.00 X 0 436216 49741 Brian Patty MD Former Officer 0.00 40.00 X 0 443669 107604 Craig A Svendson MD Former Officer 0.00 40.00 X 0 526966 69453 Timothy H Hanson Former President/CEO 0.00 0.00 X 0 623123 0 Brendon Cullinan MD Former Officer 0.00 40.00 X 0 331378 68937 Mary F Pynn Former Officer 0.00 40.00 X 0 359109 53251 Mary L Arnold Former Officer 0.00 30.00 X 0 183662 19745 Mindy A Smith Former Officer 0.00 0.00 X 176179 0 34527 Roger E Green Former Officer 0.00 0.00 X 0 283061 128069 Scott W Hinrichs Former Officer 0.00 30.00 X 0 369924 92003 Shirley A Germann Former Officer 0.00 30.00 X 0 206394 17847 Jonathan C Grimes MD Former Physician 0.00 40.00 X 0 338567 49752 Puneet S Cheema MD Former Physician 0.00 40.00 X 0 1077850 88160 2898466 10108659 1869173 95 1 1 0 Regents of the University of Minnesota NW 5960 PO Box 1450 Minneapolis MN 554855960 Medical Services 2308841 Parsons Electric LLP NW 9562 PO Box 1450 Minneapolis MN 554859562 Electrical Services 1060749 Philips Healthcare PO Box 100355 Atlanta GA 303840355 Equipment Maintenance Services 928710 Associated Anesthesiologists CM-9710 PO Box 70870 St Paul MN 55170 Medical Services 910754 GE Healthcare Financial Services PO Box 641419 Pittsburgh PA 152641419 Equipment Maintenance Services 897673 43 769039 586634 769039 Patient Revenue 622110 268874493 268874493 Related Entity Rental 531120 4572180 4572180 Surgery Center Services 621400 2194696 2194696 Cafeteria Revenue 722310 1448703 1448703 Meaningful Use Revenue 900099 1027568 1027568 1005009 721261 283748 279122649 331912 331912 1200 0 1200 1200 1200 1202399 61282 1141117 1141117 1141117 281365917 278838901 283748 1474229 1021306 1021306 84882232 83780861 1101371 7016213 6925176 91037 11898963 11744571 154392 6194980 6041902 153078 19159 19159 10486 10486 23834152 19763962 4070190 83766 42604 41162 11470929 10126367 1344562 3471373 30406 3440967 8123637 8123637 96552 88799 7753 140973 138960 2013 3432750 3432750 5706293 5685472 20821 1807407 138921 1668486 Medical Supplies 39115032 39115032 HealthEast Mgmt Fees 31055746 31055746 Bad Debt Expense 6579153 6579153 Minnesota Care Tax 2992467 2992467 3175178 2791283 383895 252128747 207552809 44575938 0 7989 9010 40298 32673390 39502610 14850 2784 2468544 2484772 2040336 2131869 154210360 89005883 64955602 65204477 12751464 13010668 1017359 829035 115969832 123175225 12486836 13820310 19847503 18744364 504316 327905 2500214 3339206 35338869 36231785 X 80630963 86943440 80630963 86943440 115969832 123175225 X 29237170 -22924693 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 10486 10486 0 Part II-B, Line 1: The organization pays annual membership dues to the American Hospital Association and the Minnesota Hospital Association. A portion of these annual dues are determined to be used for lobbying purposes. 2995111 2995111 95640153 52184863 43455290 7972798 3524819 4447979 40440919 27924546 12516373 7161379 5371655 1789724 65204477 Investment in HealthEast Surgery Center-Maplewood, LLC 13010668 C 13010668 Asbestos Abatement Liability 777439 Third Party Settlements 1899761 Note Payable - Infusion Pump Contract 662006 3339206 X Part X, Line 2: The FASB issued guidance regarding accounting for uncertainty in income taxes in July 2006, which requires recognition in the financial statements of the effect of a tax position if that tax position is more likely than not of being sustained on audit based upon the technical merits of the tax posiiton. HealthEast has not identified any significant liability for uncertain tax positions, and accordingly, no such liability is recorded for 2014 or 2013. 1 1 X 1 X 1 X 0 1 0 1 1 1188165 1188165 0.00480 33520048 24375217 9144831 0.03720 3886037 476068 3409969 0.01390 38594250 24851285 13742965 0.05590 299438 299438 0.00120 3572893 1815224 1757669 0.00720 3924 3924 0.00000 3876255 1815224 2061031 0.00840 42470505 26666509 15803996 0.06430 5425 5425 0.00000 5425 5425 1 6791584 0 80246116 100061000 -19814884 X 1 1 1 HealthEast Surgery Center-Maplewood LLC Surgery Center 0.74500 0.00000 0.15500 2 Maplewood Professional Building Limited Partnership Rental Real Estate 0.12600 0.00000 0.11400 1 1 HealthEast St John's Hospital 1575 Beam Avenue Maplewood MN 55109 http://www.healtheast.org/st-johns-hos 371408 X X X HealthEast St John's Hospital 1 1 X X X X X X X 12 1 1 1 X http://healtheast.org/community-involveme X X X X X X X 0 0 1 1 200.000000000000 1 300.000000000000 1 X X X X 1 1 X X X 1 0 X X X X 1 X 0 0 HealthEast St. John's Hospital Part V, Section B, Line 3: In conducting the Community Health Needs Assessment, the organization took into account input from representatives of the community it serves, including those with special knowledge of or expertise in public health in the following ways:Four town hall discussions, located in community centers in the East Metro, were conducted in May 2012 with members of HealthEast Passport, a program to keep people 50 and better healthy and active in the community. Sessions were held at community centers in Inver Grove Heights and Maplewood, at Woodwinds Health Campus in Woodbury, and at City Passport in downtown Saint Paul. In collaboration with HealthEast staff, a mixed-method approach consisting of interviews with Bethesda staff and advocacy organizations, surveys with Bethesda support group participants, and follow up interviews with recently discharged patients was used to gather information about the unique needs of Bethesda patients. Key informant interviews were conducted with individuals representing the following cultural communities: African American; African; Hispanic/Latino; Hmong; Karen; and homeless. The informants included key stakeholders who were members of (or who had direct experience working closely with) each community of interest, and who could speak to the health needs of community members of the east metro. Informants were asked about barriers to health and wellness in specific cultural communities and provided recommendations for health systems to consider when working to address these barriers.The organization consulted with leaders in the community with special knowledge of or expertise in public health when conducting the Community Health Needs Assessment.The External Advisory Committee included local & state public health representatives from the Ramsey County Department of Public Health, Dakota County Department of Public Health, Washington County Public Health, and the Office of Minority and Multicultural Health at Minnesota Department of Health.Key informant interviews in diverse communities were conducted with theHmong American Partnership, Wilder Foundation, Westside Community Health Services, HealthCare for the Homeless and HouseCalls, YWCA, Karen Organization of Minnesota, Minnesota Department of Human Services, Minnesota Department of Health, and Ramsey County Public Health. HealthEast St. John's Hospital Part V, Section B, Line 4: The organization's community needs health assessment was conducted with the following hospital facilities:HealthEast Bethesda HospitalHealthEast St. Joseph's HospitalHealthEast Woodwinds Hospital HealthEast St. John's Hospital Part V, Section B, Line 6i: The website where the oranization's CHNA report and implementation strategy can be viewed is: http://healtheast.org/community-involvement/community-outreach.html HealthEast St. John's Hospital Part V, Section B, Line 7: While many opportunities for community health improvement initiatives were identified, the organization determined that in order to make an impact, a focused approach was more prudent. Therefore, in order to make an impact, it was decided to initially focus on a high-risk, high-utilizer population with an ambulatory sensitive condition. This past fiscal year ending August 2014 we continued to expand our initial community health initiative centered on chronic disease prevention, specifically on pre-diabetes prevention. We targeted patients on Medicaid, as well as other community groups using evidenced-based diabetes prevention programs. The results exceeded our established targets: * number of participants 101* average weight loss 8.5% (target 7.0%)* minutes of weekly activity 188 minutes (target 150 minutes)In addition to chronic disease prevention, we initiated an injury/falls prevention program, Matter of Balance. Minnesota ranks 5th in the nation for falls related deaths. By partnering with Minnesota Area Agency on Aging and local community centers and churches, we were able to bring this program 131 community members. One metric we tracked was "fear of falling interferes with daily activities". This measurement decreased from 21% to 17%. In order to respond to community need to work with culturally-specific organizations, HealthEast partnered with Hmong American Partnership to bring Matter of Balance to groups from Cambodia and Viet Nam. Additionally, we worked with Karen Organization of Minnesota, Fairview Health System, and local churches to bring immunization clinics to the local neighborhood. From the three clinics where HealthEast provided service, over 600 family members from the underserved Karen community were immunized.The organization did not address the following community health needs during the filing year and intends to address them going forward:* Adopt a comprehensive view of health and wellness *HealthEast patients, support people, and key informants consistently described health as more than the absence of illness, but instead describe health more holistically, with an emphasis on quality of life, social connectedness, spirituality, and maintaining independence. * Expand patient and community knowledge of services *Patients, support people, and cultural informants identified a lack of knowledge of the health care system as a major barrier to accessing care.* Expand culturally competent services *Limited access to health care providers of color was identified as a major concern among communities of color. They perceive a need for expanding workforce, at all levels, to be more culturally-representative and provide additional training for providers, staff, and interpreters to provide more culturally responsive services.* Improve Care Coordination *HealthEast patients and Passport member described experiences with perceived lack of care coordination for medical and non-medical needs. HealthEast St. John's Hospital Part V, Section B, Line 14g: The facility publicized a summary of the organization's financial assistance policy in the following manner: * A summary of the policy was attached to billing invoices. * A summary of the policy was posted in the hospital facility's emergency rooms or waiting rooms. * A summary of the policy was posted in the hospital facility's admissions offices. * The organization also communicates to patients during admission, financial counseling and collection calls that we have a financial assistance program and we can provide them with an application. 17 HealthEast Midway Outpatient Center 1700 University Ave West St Paul MN 55104 Outpatient Services Center HealthEast Optimum Rehabilitation-Maplew 1570 Beam Avenue Suite 200 Maplewood MN 55109 Outpatient Rehabilitation Clinic HealthEast Optimum Rehabilitation-Midway 1390 University Ave W St Paul MN 55104 Outpatient Rehabilitation Clinic HealthEast Optimum Rehabilitation-Oakdal 1099 Helmo Ave Suite 110 Oakdale MN 55128 Outpatient Rehabilitation Clinic HealthEast Optimum Rehabilitation-Woodbu 1825 Woodwinds Drive Woodbury MN 55125 Outpatient Rehabilitation Clinic HealthEast Optimum Rehabilitation-Stillw 2900 Curve Crest Blvd Stillwater MN 55082 Outpatient Rehabilitation Clinic HealthEast Surgery Center-Maplewood 1655 Beam Avenue Maplewood MN 55109 Outpatient Surgery Center HealthEast Surgery Center-Midway 1700 University Ave West St Paul MN 55104 Outpatient Surgery Center HealthEast Pain Care - Midway 1700 University Ave West St Paul MN 55104 Outpatient Pain Care Clinic HealthEast Sleep Center - Maplewood 3100 Kennard St Suite 200 Maplewood MN 55109 Outpatient Sleep Center HealthEast Radiology - Midway 1700 University Ave West St Paul MN 55104 Outpatient Radiology Center HealthEast Sleep Center - Eagan 1215 Town Centre Drive Suite 200 Eagan MN 55123 Outpatient Sleep Center HealthEast Vascular Center - Maplewood 1570 Beam Avenue Suite 200 Maplewood MN 55109 Outpatient Vascular Center HealthEast Vascular Center - St Paul 17 W Exchange St Suite 600 St Paul MN 55102 Outpatient Vascular Center HealthEast Vascular Center - Woodwinds 1875 Woodwinds Dr Suite 240 Woodbury MN 55125 Outpatient Vascular Center HealthEast Medical Imaging LLC 3640 Talmage Circle Suite 100 Vadnais Heights MN 55110 Outpatient Imaging Center Mental Health & Addiction Care - St Joh 1675 Beam Avenue Suite 101A Maplewood MN 55109 Outpatient Mental Health Care Part I, Line 6a: This organization is part of the HealthEast Care System which prepares an annual community benefit report called "HealthEast Report to the Community" on a consolidated basis. Part I, Line 7: The amounts reported on Form 990, Schedule H, Part I, Line 7a, 7b and 7c were determined using the cost to charge ratio derived from Worksheet 2 in the Schedule H, Form 990 Instructions. Form 990, Schedule H, Part I, Lines 7e, 7f and 7i are reported at charges as recorded by the organization. Part I, Ln 7 Col(f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $6,579,153. Part II, Community Building Activities: HealthEast St. John's Hospital promotes the health of the community it serves by providing community building activities. One such activity is by providing various support groups. The support groups are offered to patients and members of the community in general and provide participants with information that can help them through health related issues. HealthEast St. John's Hospital also provides the preparation and packaging of nutritious lunch meals for the Salvation Army Adult Day Care program. These meals, which include special diets, are for those who are disadvantaged or disabled and are unable to provide for themselves. The meals are picked up at St. John's Hospital and brought to the Salvation Army Adult Day Care program where they are served by their staff.Another activity HealthEast St. John's Hospital provides is free access to its Passport Program through their parent organization, HealthEast Care System. This program is dedicated to enhancing the quality of life for all as we age. We lead positive social change and deliver value to members through information, advocacy, lifelong learning, self-development and fulfillment. We accomplish this goal by offering social opportunities, educational seminars, opportunities to meet other members and volunteer opportunities.HealthEast St. John's Hospital is also active in the community by participating in various committees and collaborative efforts to address health care issues. Part III, Line 2: The bad debt expense reported on Part III, Line 2 is reported at charges as recorded by the organization.The following describes the costing methodology used in determining bad debt and the rationale for including a portion of bad debt as community benefit:The bad debt allowance is calculated as a percentage of patient receivables after deductions for estimated provisions for contractual adjustments (discounts) on services provided to enrollees of Medicare, Medicaid, third-party payor programs, charity care, uninsured discounts, and other administrative adjustments.Certain patient accounts are written off to bad debt because the organization does not have sufficient information to determine if the patient would qualify for free care or financial aid. Therefore, it is possible that some bad debt is actually charity care. However, if a patient account is written off to bad debt and the collection agency later determines that the patient would have qualified for free care or financial aid, then the bad debt expense is reclassified to charity care. Part III, Line 4: The footnote to the financial statements that describes the bad debt expense is located on page 10 of the audited financial statements. Part III, Line 8: The organization believes that at least some portion of the costs we incur in excess of payments received from the Federal government for providing medical services to Medicare enrollees and beneficiaries under the Federal Medicare Program (shortfall or Medicare shortfall) constitutes a community benefit. Providing these services clearly lessens the burdens of the government by alleviating the Federal government from having to directly provide these medical services. As demonstrated and calculated on Form 990, Schedule H, Part III, Lines 5, 6 and 7, our Medicare "allowable costs" clearly exceed the payments we receive for providing these medical services under the Medicare Program. By absorbing the Medicare shortfall costs we are providing a community benefit as well as easing the burden of the Federal government having to cover these costs.To arrive at the Form 990, Schedule H, Part III, Line 6 amount we used actual Medicare charges from internal records and applied an estimated cost to charge ratio to determine the Medicare allowable costs. The estimated Medicare cost to charge ratio is the prior period Medicare Cost Report cost to charge ratio. Part III, Line 9b: The organization's collection policy and practices provide that a patient who indicates an inability to pay be provided with the information and application for the organization's financial aid policy. When a completed financial assistance application is received, it is processed according to the organization's policy to determine whether the patient qualifies for discounted or free medical services. The organization will not begin the billing process until a determination is made whether the patient qualifies for discounted or free medical services. However, if a patient expires or files for bankruptcy prior to providing a completed financial assistance application, there is no way to determine if the patient qualifies for charity care.The patient handbook also provides information regarding collection policies and practices. Bills provided to patients include the following statement: "Financial Aid Available: It is important that you let us know if you will have trouble paying your bill. HealthEast may be able to help you get free or low-cost health coverage through community or government programs. Although HealthEast can assist you in this process, you must apply for these benefits if you are eligible." Part VI, Line 2: During fiscal year 2013, the organization along with affiliated entities conducted a community health needs assessment to understand the health needs of the community. The community health needs assessment process was guided by HealthEast advisory groups that represented each hospital and key departments. At multiple points in the assessment planning and implementation process, local public health departments were also contacted to provide input and feedback to the process and review relevant data.A mixed method approach was developed collaboratively by HealthEast and Wilder Research to describe the health and wellness needs of east metro residents, with particular attention to the needs of aging residents, those with chronic conditions, and medically underserved populations, including communities of color and uninsured/underinsured populations. Secondary, or existing, data sources were used to describe the characteristics of residents and patients, while the primary, or new, data collection approaches selected for the assessment were designed to gather feedback from specific priority populations during a short 6-week timeframe in order to align with HealthEast's decision making and reporting timelines.Mixed method approaches to gather feedback from HealthEast Bethesda Hospital (Bethesda) staff and patients was also utilized. In collaboration with HealthEast staff, a mixed-method approach consisting of key informant interviews with Bethesda staff and advocacy organizations, surveys with Bethesda support group participants, and follow up interviews with recently discharged patients was used to gather information about the unique needs of Bethesda patients. In addition, interviews were held with current members of the HealthEast Passport program. Wilder Research facilitated a guided discussion about the strategies Passport members currently use to support their health, challenges they have in supporting their health, and their suggestions for how medical professionals can better support them in their efforts to stay healthy. Part VI, Line 3: HealthEast St. John's Hospital has Financial Counselors and Social Workers available to assist patients in determining whether they qualify for help with their medical bills. Billing and Insurance Information brochures are also available to patients which explain the organization's billing and payment policies as well as contact information for discussing financial assistance with our Financial Counselors and Social Workers. Patients are informed about the availability of federal, state and local medical assistance programs, charity care availability as well as discounted care eligibility requirements.The patient handbook also provides information regarding collection policies and practices. Bills provided to patients include the following statement: "Financial Aid Available: It is important that you let us know if you will have trouble paying your bill. HealthEast may be able to help you get free or low-cost health coverage through community or government programs. Although HealthEast can assist you in this process, you must apply for these benefits if you are eligible." Part VI, Line 4: The primary service area for three of the four HealthEast Care System hospitals includes the three east metro counties of Dakota County, Ramsey County, and Washington County. Combined, the service area includes over one million residents. During the past decade, the east metro region has become increasingly culturally diverse and home to a growing aging population. In addition, as a result of the recent economic recession, a growing number of east metro residents live in poverty. These recent and anticipated changes in the region's population may influence the types of services provided by HealthEast and the ways in which services are delivered.HealthEast currently serves a diverse patient population and is seeing growth in the number of hospital visits by patients of color, particularly new patients of new immigrant and refugee communities. Although most patient hospital visits are with patients who speak English as their primary language, over 8,000 of hospital visits in 2010 were with patients who spoke languages other than English. The demand for culturally and linguistically appropriate care is likely to increase. Over the next 30 years, the number of residents of color in the Twin Cities region is expected to double, while at the same time, the White, non-Hispanic population is expected to slightly decline.In 2010, 11 percent of east metro residents were age 65 or older. Not surprisingly, many of the patients who receive services at HealthEast hospitals also fall into this age group. In the three hospitals that serve the east metro region, as few as one in five patient visits and up to one in three patient visits were with patients age 65 or older in 2010. A dramatic increase in the number of seniors is expected over the next 30 years; by 2040, over 20 percent of Twin Cities residents are expected to fall into this age category.The recent economic recession has also had an impact on east metro residents. The percentage of residents living in poverty has roughly doubled in each of the east metro counties. Poverty rates are higher overall in Ramsey County, where there has also been a sharp increase in the percentage of residents living in poverty, from 9 percent in 2000 to17 percent in 2010. A substantial number of east metro residents may also have difficulty accessing health care services due to lack of insurance, limited money to afford services, or a lack of medical service providers. Although a growing number of residents will have health insurance as a result of federal health care reform, the percentage of uninsured residents varies from 7 percent in Washington County to 12 percent in Ramey County. In addition, American Indians are considered a medically-underserved community in the east metro and there are five federally-designated medically underserved neighborhoods in Ramsey County.Bethesda Hospital, serves individuals who live throughout the state of Minnesota.Although HealthEast serves a predominantly English-speaking population, the hospital system provides care to patients who speak a variety of different languages. At each hospital, the vast majority of patient visits (94-97%) were with patients who spoke English as their primary language. However, HealthEast does need to address the needs of patients who speak a variety of languages. The interpretation and translation services to provide culturally-appropriate care to HealthEast patients is better understood by describing the number of patient visits with patients who spoke languages other than English. During 2010, nearly 5,000 patient visits were held with patients who primarily spoke Hmong, while over 1,000 patient visits were with patients who spoke Karen or Spanish. Overall, patients spoke a total of 11 different languages. While some patients may have family members who can serve as informal interpreters, many likely need medical interpreters and translated materials.The region will continue to become increasingly culturally diverse. This is the result of ongoing migration and higher birth rates among Hispanic, African American, and Asian populations. Between 2010 and 2040, the number of residents of color in the Twin Cities region is expected to double while the White, non-Hispanic population will decrease 2 percent. Population growth is expected to be greatest within the Hispanic/Latino population, but African American and Asian populations are expected to more than double, as well. Part VI, Line 5: In addition to the community benefits and activities described in other parts of this filing, HealthEast St. John's Hospital is part of the HealthEast Care System which furthers its tax-exempt charitable purpose and promotes the health of the communities it serves including, but not limited to the following: The organization's hospitals extend medical staff privileges to all qualified physicians in the community. HealthEast St. John's Hospital as part of the HealthEast Care System, a tax-exempt health care system, reinvests any excess revenues back into the core operations of the organization for which the tax-exemption was granted.The organization offers various health care classes, health screenings, support groups and other events related to the promotion of health. Some examples are in the following areas: Diabetes, Pain Care, Pregnancy, Birthing, Parenting, Heart Disease, Weight Loss, Women's Health, Vein Therapy, Chemical Dependency, Stoke, Cancer, Brain Injury, Smoking Cessation and CPR (Cardiopulmonary Resuscitation).HealthEast Care System is governed by a board of directors that are members of the community the organization serves. Part VI, Line 6: HealthEast Care System is a community-focused, non-profit health care organization that provides innovative technology, compassionate care, and a full spectrum of family health services. HealthEast includes Bethesda Hospital, St. John's Hospital, St. Joseph's Hospital, and Woodwinds Health Campus as well as outpatient services, clinics, home care, and medical transportation services.Organization Mission and Goal:The mission of HealthEast is to provide high quality, cost-effective, compassionate health care for the communities it serves. Our current focus is around creating value for our patients. This is articulated in our 2015 Milestone Goal: "Building on our benchmark performance, HealthEast will be a national leader in clinical quality, patient experience and cost effectiveness - the best value - by 2015."HealthEast includes four hospitals, 14 primary care clinics, outpatient services, home care and medical transportation services. With 7,300 employees and 1,500 physicians on staff, it meets a broad array of community health needs, through a blend of "high tech" services, traditional medicine and integrative therapies. Part VI, Line 7, Reports Filed With States MN 1 1 0 0 0 0 0 1 0 Anne M Pearson MD Director 0 303719 0 11959 0 12257 0 21498 0 21247 0 370680 0 8189 Kathryn G Correia President/CEO 0 698717 0 323326 0 10736 0 141114 0 17024 0 1190917 0 0 Daniel Kaye Interim VP/CFO-HECS, ended 3-2014 0 536420 0 0 0 0 0 7650 0 0 0 544070 0 0 Scott L North SVP, President Acute Care 360363 0 137028 0 52403 0 58322 0 32001 0 640117 0 48616 0 Catherine J Barr SVP Commuity Services, President Bet 0 291008 0 109970 0 48300 0 50986 0 15359 0 515623 0 39057 Thomas A Schmitt SVP ACO/Clinics/Outpaitent 0 295313 0 113872 0 6467 0 56961 0 22398 0 495011 0 0 Julie A Schmidt SVP CAO 0 356446 0 133864 0 58526 0 63309 0 15662 0 627807 0 46090 Stephen J Kolar MD SVP CMO 0 389949 0 146678 0 60292 0 86648 0 26644 0 710211 0 52253 Joanne M Sunquist SVP/Chief Information Officer 0 286852 0 70926 0 8332 0 44766 0 21182 0 432058 0 0 Michael McMahan VP Acute Care Operations 0 203413 0 57507 0 558 0 14789 0 23017 0 299284 0 0 Debra J Hurd VP Acute Care Nursing 222195 0 61772 0 2663 0 49305 0 2604 0 338539 0 0 0 John Kvasnicka MD VP/Executive Medical Director 379972 0 97269 0 2286 0 66018 0 28032 0 573577 0 0 0 Paul J Sovell MD Physician 355965 0 21000 0 8931 0 46887 0 22126 0 454909 0 0 0 Peter J Tanghe MD Physician 310293 0 31122 0 563 0 23087 0 17090 0 382155 0 0 0 Eric Roth MD Physician 325096 0 27036 0 436 0 27399 0 21005 0 400972 0 0 0 Paul M McCormick MD Physician 288377 0 21000 0 16517 0 24657 0 21298 0 371849 0 10803 0 Michael F Nass Former Officer 0 297649 0 39357 0 99210 0 22401 0 27339 0 485956 0 47766 Brian Patty MD Former Officer 0 299046 0 84742 0 59881 0 81346 0 26258 0 551273 0 44018 Craig A Svendson MD Former Officer 0 235819 0 82253 0 208894 0 52652 0 16801 0 596419 0 131053 Timothy H Hanson Former President/CEO 0 0 0 0 0 623123 0 0 0 0 0 623123 0 0 Brendon Cullinan MD Former Officer 0 257987 0 72415 0 976 0 49284 0 19654 0 400316 0 0 Mary F Pynn Former Officer 0 254508 0 71070 0 33531 0 35666 0 17585 0 412360 0 29692 Mary L Arnold Former Officer 0 119510 0 17589 0 46563 0 9073 0 10672 0 203407 0 0 Mindy A Smith Former Officer 105825 0 0 0 70354 0 22928 0 11599 0 210706 0 59263 0 Roger E Green Former Officer 0 129404 0 0 0 153657 0 111164 0 16905 0 411130 0 142219 Scott W Hinrichs Former Officer 0 155069 0 58715 0 156140 0 53153 0 38851 0 461928 0 86942 Shirley A Germann Former Officer 0 128726 0 37002 0 40666 0 10093 0 7755 0 224242 0 0 Jonathan C Grimes MD Former Physician 0 296876 0 25000 0 16691 0 33538 0 16214 0 388319 0 10621 Puneet S Cheema MD Former Physician 0 1019339 0 0 0 58511 0 65799 0 22361 0 1166010 0 52091 Part I, Line 3 HealthEast Care System, a related tax-exempt organization, engages an external consulting firm to review annually the compensation of the organization's CEO, Senior Vice Presidents, Vice Presidents. The review was last completed in November 2013. The process includes the external consulting firm evaluating current base salaries and total cash and benefits compared to comparable positions within the comparator group. The external firm presents its findings to the affiliated tax-exempt organization's Executive Committee of the Board and indicates any recommendations for change. The affiliated tax-exempt Executive Committee of the Board approves the salaries of the CEO, Senior Vice Presidents, Vice Presidents . The consulting firm issues a reasonable compensation letter to affiliated tax-exempt organization's Board of Directors. Part I, Lines 4a-b The following individuals received severance payments during the year from this organization or a related organization: Michael F. Nass $282,355 Roger E. Green $134,053 Mindy A. Smith $120,074 Mary Arnold $ 29,568 Shirley Germann $ 31,100 Scott Hinrichs $ 39,480 Craig Svendson $ 55,308 The terms and conditions of the severance payments are a signed release of rights and an agreement to not make any disparaging remarks about the organization from each individual. Eligible executives receive severance payments for one year. The following individuals participated in or received payment from a supplemental nonqualified retirement plan. The amount listed is the amount paid to the individual and reported accordingly on their 2013 W-2 Form. The terms and conditions of this supplemental nonqualified retirement plan is a five year cliff vesting arrangement: Michael F. Nass $ 47,766 Catherine J. Barr $ 39,057 Anne M. Pearson, M.D. $ 8,189 Julie A. Schmidt $ 46,090 Stephen J. Kolar, M.D. $ 52,253 Scott W. Hinrichs $ 86,942 Scott L. North $ 48,616 Mindy A. Smith $ 59,263 Craig A. Svendson, M.D. $131,053 Brian Patty, M.D. $ 44,018 Roger E. Green $142,219 Mary F. Pynn $ 29,692 Paul McCormick, M.D. $ 10,803 Jonathan C. Grimes, M.D. $ 10,621 The following individuals were participants in the supplemental nonqualified retirement plan but did not receive any payment as they are not yet vested in the plan. The following amounts are their current year contribution into the plan and are accordingly included in Schedule J, Column C: Kathryn Correia $121,799 Brendon M. Cullinan, M.D. $ 32,073 Thomas A. Schmitt $ 41,661 Joanne M. Sunquist $ 35,246 Douglas Davenport $ 0 Michael McMahan $ 0 Debra J. Hurd $ 25,310 Eric Roth, M.D. $ 12,099 Paul J. Sovell, M.D. $ 9,336 Peter J. Tanghe, M.D. $ 7,787 John Kvasnicka, M.D. $ 50,718 The following individuals were participants in the supplemental nonqualified retirement plan. The following amounts are their current year contribution into the plan and are accordingly included in Schedule J, Column C: Michael F. Nass $ 0 Catherine J. Barr $ 26,751 Anne M. Pearson, M.D. $ 6,198 Julie A. Schmidt $ 34,684 Stephen J. Kolar, M.D. $ 39,464 Scott W. Hinrichs $ 0 Scott L. North $ 35,744 Mindy A. Smith $ 0 Craig A. Svendson, M.D. $ 0 Brian Patty, M.D. $ 26,399 Roger E. Green $ 0 Mary F. Pynn $ 20,366 Paul McCormick, M.D. $ 6,789 Jonathan C. Grimes, M.D. $ 7,186 Part I, Line 7 HealthEast Care System provides a Management Incentive Program. The program provides lump sum financial awards based on system-wide, business unit and/or department financial and quality measures. Annual goals, specifically tied to productivity and quality indicators, are set for the fiscal year and an incentive paid out annually if key goals and measures are achieved. Before HealthEast Care System can authorize payment of any awards, it must meet the following qualifications: * Financial - HealthEast must have sufficient net income for the fiscal year to cover the cost of any awards. * Accreditation - All HealthEast business units must maintain a level of quality and performance that results in, and maintains, accreditation by Joint Commission (JCAHO) and equivalent licensing boards * Approval -The HealthEast Board of Directors has final approval of all incentive program payouts. In addition, each participant must meet individual performance qualifications to be eligible to receive an award. Health Systems Cooperative Laundries Key employee Michael McMahan, board member Health Systems Coop. Laundries 884085 Laundry Services 0 X Building/Remo 5 426747 Cost X Office Furnit 2 86616 Cost X Medical Equip 0 70085 Cost X Computer Equi 1 3186 Cost 0 0 1 0 Form 990, Part IV, Line 24a This organization along with related organizations HealthEast Care System, HealthEast St. Joseph's Hospital and HealthEast Woodwinds Hospital are equally liable for the repayment of the bonds reported on the HealthEast Care System Form 990. Form 990, Part V, Line 1a Cash disbursements are centralized through the parent organization. Therefore the parent organization, HealthEast Care System, makes the payment and files the related Form 1099's and Form 1096 instead of HealthEast St. John's Hospital. Form 990, Part VI, Section A, line 1 The Executive Committee shall consist of five or more members, including the ex officio members. The Chair shall chair the Executive Committee. The Executive Committee shall recommend to the Board of Directors changes in the by Bylaws, approve conflict of interest policies and review compliance with conflict of interest policies. The Executive Committee shall have all the power and authority of the Board of Directors. The Executive Committee shall have the power to act only in the intervals between meetings of the Board. Only the Outside Directors of the Executive Committee shall be entitled to vote on any action taken by the Executive Committee in discharging its duties with regard to human resources and governance. Members of the Executive Committee who are Inside Directors shall not participate in, or be present during, any discussion of actions proposed or taken with respect to the duties with regard to human resources and governance, except to the extent requested to do so by the Outside Directors on the Executive Committee. Form 990, Part VI, Section A, line 2 All officers and employees are employed by related organizations in which the board members are also board members of the related organization. Therefore, a business relationship exists between these individuals. Form 990, Part VI, Section A, line 6 The sole member of HealthEast St. John's Hospital is HealthEast Care System, a 501(c)(3) tax-exempt, non-profit organization. The member organization does not elect the members of HealthEast St. John's Hospital Board of Directors because HealthEast St. John's Hospital has a self-electing board. The member organization does not approve any decisions of the board. The member of the organization receives the organziations net assets upon dissolution. Form 990, Part VI, Section B, line 11 The Form 990 is sent electronically to all members of the Board of Directors prior to the filing of the Form 990 and prior to the Finance Committee and Board of Directors meetings in which it will be reviewed. A representative of the tax department, if necessary, will attend the Finance Committee meeting and/or the Board of Directors meeting to discuss the Form 990 with the members of the Board and answer any questions from the Board. Form 990, Part VI, Section B, line 12c HealthEast Care System monitors proposed or ongoing transactions for conflicts of interest through the procedures set forth in its Conflicts of Interest Policy (the Policy). The Policy covers HealthEast Care System's Directors, Officers and members of a Committee with Board-delegated powers. A Director, Officer or member of a Committee with Board-delegated powers who has a direct or indirect financial interest, is an interested person under the terms of the Policy. If a person is an interested person with respect to any entity in the HealthEast Care System he or she is an interested person with respect to all entities in the HealthEast Care System. Pursuant to the terms of the Policy, in connection with any actual or possible conflicts of interest, an interested person must disclose the existence of his or her financial interest and must be given the opportunity to disclose all material facts relating to his or her financial interest to the Directors or members of Committees with Board-delegated powers considering the proposed transaction or arrangement. After disclosure of the financial interest and all material facts, and after any discussion with the interested person, the interested person must leave the Board (or Committee) meeting while the financial interest is discussed and voted upon. The remaining Board (or Committee) members shall decide if a conflict of interest exists. An interested person may make a presentation at the Board or Committee meeting regarding the proposed transaction or arrangement, but after such presentation, the interested person shall leave the meeting during the discussion of, and the vote on, the proposed transaction or arrangement that results in the conflict of interest. Form 990, Part VI, Section B, line 15 The Chair of the Board of Directors engages an external consulting firm to review the compensation of the organization's CEO, Senior Vice Presidents and Vice Presidents annually and was last completed in November 2013. The process includes the external consulting firm evaluating current base salaries and total cash and benefits compared to comparable positions within the comparator group. The external firm presents its findings to the Executive Committee of the Board and indicates any recommendations for change. The Executive Committee of the Board approves the salaries. The consulting firm issues a reasonable compensation letter to the Board of Directors. Form 990, Part VI, Section C, line 19 The Articles of Incorporation for this organization are available to the public through the Secretary of State Office. The organization's conflict of interest policy and other governing documents are not made available to the public. The financial statements for this organization are made available to the public through the Attorney General's Office and are also attached to this Form 990. Form 990, Part VII In recent fiscal years, the organization had internal leadership changes which resulted in a change in the roles and responsibilities of certain employees. As such, some individuals who were treated as officers in the past are no longer with the organization and others no longer meet the definition of officer or key employee. Based on the IRS instructions, they are listed on Part VII as former officers or key employees as they were considered in this role within the past five years. Form 990, Part VII, Section A, Column B This organization is a subsidiary of HealthEast Care System, a 501(c)(3), tax-exempt, non-profit organization. The Board of Directors for this organization is the same as the Board of Directors for HealthEast Care System. All hours worked as a member of the Board of Directors are reported on the Form 990 for the parent organization, HealthEast Care System. Therefore, we have reported 0.00 hours worked by each member of the Board of Directors on this organization's return. Form 990, Part XI, line 9: Transfers to Parent Company -22,924,693. HealthEast Medical Imaging LLC 3640 Talmage Circle Vadnais Heights MN 55110 200509546 Medical Imaging Services MN 247625 450913 HealthEast St John's Hospital HealthEast Outpatient Services LLC 1700 University Avenue W St Paul MN 55104 461336243 Outpatient Services MN 4303034 55727 HealthEast St John's Hospital D & T Facility Management Company PO Box 64624 St Paul MN 55164 411928275 Management of Diagnostic Medical Services MN 501(c)(3) 11a HealthEast Woodwinds Hospital 1 HealthEast Medical Research Institute PO Box 64624 St Paul MN 55164 411765832 Medical Research MN 501(c)(3) 4 HealthEast Care System 1 HealthEast Professional Services PO Box 64624 St Paul MN 55164 261226617 Physician services provided to related tax-exempt hospitals. MN 501(c)(3) 9 HealthEast Care System 1 HealthEast St Joseph's Hospital PO Box 64624 St Paul MN 55164 410693880 Hospital MN 501(c)(3) 3 HealthEast Care System 1 HealthEast Woodwinds Hospital PO Box 64624 St Paul MN 55164 411592761 Hospital MN 501(c)(3) 3 HealthEast Care System 1 HealthEast Care System PO Box 64624 St Paul MN 55164 363517697 Hospital MN 501(c)(3) 3 N/A 0 Maplewood Professional Building Limited Partnership 1655 Beam Avenue Maplewood MN 55109 411431847 Rental Real Estate MN HealthEast St John's Hospital Related 89152 342029 0 1 0.12600 HealthEast Surgery Center-Maplewood LLC 1655 Beam Avenue Maplewood MN 55109 203349887 Outpatient Surgery Center MN HealthEast St John's Hospital Related 2475065 1323152 0 0 0.72500 East Metro Insurance LTD 62 Forum Lane 3rd Floor Camana Ba Grand Cayman CJ KY1-1203 980417513 Captive Insurance Organization CJ N/A C 1 HealthEast Diversified Services Inc PO Box 64624 St Paul MN 55164 411388583 Reference Lab & Rental Real Estate MN N/A C 1 1 0 0 0 0 0 0 0 1 0 1 1 1 0 0 0 0 0 1 Maplewood Professional Building Limited Partnership A 13816 Fair Market Value HealthEast Medical Research Institute A 53221 Fair Market Value Maplewood Professional Building Limited Partnership K 248950 Fair Market Value HealthEast Woodwinds Hospital K 66141 Fair Market Value HealthEast Diversified Services Inc L 201657 Cost HealthEast Medical Research Institute L 135651 Cost HealthEast St Joseph's Hospital L 73626 Cost East Metro Insurance LTD M 1093682 Cost HealthEast Diversified Services Inc M 191971 Cost HealthEast Medical Research Institute M 6353381 Cost HealthEast St Joseph's Hospital M 1674741 Cost HealthEast Maplewood Surgery Center-Maplewood LLC S 1825516 Cost