2015-07-08T15:19:47-05:00 2014-08-31 ERNST & YOUNG US LLP 1900 SCRIPPS CENTER 312 WALNUT ST CINCINNATI OH 45202 990 2013-09-01 610444707 Baptist Healthcare System Inc % CARL G HERDE BAPT 5028965000 2701 Eastpoint Parkway Suite Louisville KY 40223 Carl G Herde CFO 5028965011 2015-07-02 true TRICIA M JOHNSON P00627205 5028965011 2013 2016-02-25 16:41:14Z Baptist Health STEPHEN C HANSON 2701 EASTPOINT PARKWAY Louisville KY 40223 5563932008 false X www.baptisthealthkentucky.com X 1918 KY PROVIDE QUALITY HEALTHCARE SERVICES BY ENHANCING THE HEALTH OF THE PEOPLE/COMMUNITIES WE SERVE. 16 16 10992 1182 3035465 134599 5383562 4600875 1266270994 1352847882 36615310 63890480 10655893 19180281 1318925759 1440519518 2055274 2235644 0 0 605065250 609631805 0 0 0 615741482 624209753 1222862006 1236077202 96063753 204442316 2367833857 2286559034 837451755 872062920 1530382102 1414496114 X THE MISSION OF BAPTIST HEALTHCARE SYSTEM (BHS) IS TO EXEMPLIFY OUR CHRISTIAN HERITAGE OF PROVIDING QUALITY HEALTHCARE SERVICES BY ENHANCING THE HEALTH OF THE PEOPLE AND THE COMMUNITIES WE SERVE. THE VISION OF BHS IS TO BE NATIONALLY RECOGNIZED AS THE HEALTHCARE LEADER IN KENTUCKY. BHS WILL LIVE OUT ITS CHRIST-CENTERED MISSION AND ACHIEVE ITS VISION GUIDED BY: INTEGRITY, RESPECT, STEWARDSHIP, EXCELLENCE AND COLLABORATION. false false 1069722701 2235644 1363489699 Since its inception in 1924, Baptist Healthcare System, Inc. ("Baptist") is dedicated to providing accessible, quality healthcare to all patients regardless of their ability to pay. The hospitals owned and operated by Baptist under tax identification number 61-0444707 include: Hospital Location Baptist Health Louisville Louisville, Kentucky Baptist Health Corbin Corbin, Kentucky Baptist Health Lexington Lexington, Kentucky baptist Health Paducah Paducah, Kentucky VISION The vision of Baptist is to be the healthcare leader in Kentucky. Having earned a reputation of providing high quality patient care and utilizing the latest in medical technology, patients seek out Baptist facilities for their care. According to state statistics in 2014, Baptist is one of the largest healthcare providers in the state. KENTUCKY 2014 HOSPITAL STATISTICS LICENSED BEDS 1,548 BEDS - SECOND LARGEST NUMBER OF BEDS OF ANY HEALTH SYSTEM IN KENTUCKY EMPLOYEES 10,245 EMPLOYEES AT END OF FISCAL YEAR - ONE OF THE TOP EMPLOYERS IN KENTUCKY INPATIENT CARE 64,216 ADMISSIONS/305,289 DAYS - LARGEST NUMBER OF ADMISSIONS IN KENTUCKY AT A SYSTEM-OWNED OR MANAGED HOSPITAL - ONE OUT OF EVERY EIGHT INPATIENTS RECEIVING CARE IN KENTUCKY RECEIVED CARE AT A SYSTEM-OWNED OR MANAGED HOSPITAL OBSTETRIC (DELIVERIES) 8,774 BABIES - LARGEST NUMBER OF BABIES DELIVERED IN KENTUCKY AT A SYSTEM-OWNED OR MANAGED HOSPITAL - Almost one in four babies in Kentucky was delivered at Baptist hospitals at a system-owned or managed hospital CARDIOLOGY (OPEN HEART SURGERIES) 1,093 CASES - SECOND LARGEST NUMBER OF OPEN-HEART SURGERIES PERFORMED BY ANY SYSTEM-OWNED OR MANAGED HOSPITAL IN KENTUCKY - ONE IN five OPEN-HEART SURGERIES IN KENTUCKY WAS PERFORMED AT A SYSTEM-OWNED OR MANAGED HOSPITAL EMERGENCY VISITS 166,659 REGISTRATIONS - THE SECOND LARGEST NUMBER OF EMERGENCY VISITS IN KENTUCKY AT A SYSTEM-OWNED OR MANAGED HOSPITAL - ONE IN THIRTEEN ER PATIENTS WAS TREATED AT A SYSTEM-OWNED OR MANAGED HOSPITAL OUTPATIENT VISITS 941,123 HOSPITAL VISITS - ONE IN ELEVEN OUTPATIENTS IN KENTUCKY RECEIVING CARE IN AN ACUTE-CARE SETTING WAS SEEN AT A SYSTEM-OWNED OR MANAGED HOSPITAL MISSION As indicated by its mission statement, Baptist strives to continue its "Christian heritage of service and to enhance the health of the people and the communities we serve." Baptist is organized and operated exclusively for the benefit of each community and each hospital is considered a valuable community asset. The Baptist Boards of Directors are comprised of local representatives who, along with the hospitals' management and employees, understand that they are responsible to the communities for providing high quality health care services. Over the years, Baptist has gained a reputation for providing compassionate, high quality, cost efficient, patient friendly care. RESPONSIVE TO COMMUNITY NEED Operating healthcare facilities in today's environment requires a delicate balance between producing a sufficient margin to allow for adequate staffing and investment in new technologies, while also providing enough resources to absorb the cost of care for those patients who do not have the ability to pay for the services. In 2014, Baptist was able to re-invest over $109 million into the communities in new technology, construction, renovation and systems improvement. Because of the need to generate a modest margin while caring for all patients, Baptist strives to fulfill its community responsibility of collecting appropriate reimbursement from all patients who have the necessary resources while providing a generous, yet accountable charity care policy to assist those patients who do not have the means to pay for the services rendered. (See "Charity Care Policy" on the next page for further discussion). From a broad perspective, Baptist hospitals consistently provide a high level of quality care to every patient and enhance the health of the people it serves through health promotions, health screenings, medical research, and training of health professionals. Other community benefits include: - Maintaining necessary, but unprofitable services that meet community needs - Helping to recruit physicians to underserved areas - Helping patients coordinate services with other healthcare providers - Providing resources for support groups - Promoting and providing preventive care services - Monitoring clinical outcomes in order to ensure quality care - Committing resources to improving safety and processes of care - Providing services conveniently accessible by patients In addition, Baptist employees volunteer thousands of hours in community services and leadership. Baptist's support for community activities underscores its commitment to improving the lives of those served. Because Baptist and its employees contribute so much of their time, talents and resources to serve others, communities served by Baptist are better places to live and work. Quantification of many of the community benefits is detailed later in this section. However, what the Statement of Program Service Accomplishments doesn't measure is the economic benefit derived by each community from Baptist being one of the largest employers in the state. The economic impact of the wages paid to Baptist employees is significant considering the dollars they spend on food, housing, services, and other products. CHARITY CARE POLICY To further the mission of enhancing the health of the people and communities it serves, Baptist provides medically necessary inpatient and outpatient care to patients regardless of race, religion, sex, national origin, disability, age or their ability to pay. Recognizing that not all patients have the ability to pay, Baptist has a charity care policy to accurately evaluate a patient's ability to pay for services received. Baptist relies solely on the physician order to determine whether treatment is medically necessary and whether the patient is treated on an inpatient or outpatient basis. Neither the patient's financial condition nor their ability to pay for services has any bearing upon whether, or how, the patient is treated in a Baptist facility. Patients are transferred only when Baptist does not provide the specialized service that is required, or by specific request of the patient. Baptist has notices posted throughout the hospital that clearly communicate Baptist's charity care policy. Baptist employees are instructed in the application of the charity care policy and are trained to recognize situations that indicate the financial resources of a patient may be inadequate. These employees freely and willingly volunteer information regarding the charity care policy to any patient who may express a concern regarding the ability to pay for services. The policy provides that: 1. Patients/guarantors with resources of less than 200% of the Poverty Guideline for their family size will receive full charity. 2. Patients/guarantors with resources of 200% but less than 400% of the Poverty Guideline for their family size will qualify for partial charity. The ratio of resources up to 400% of the Poverty Guideline determines the percentage of the bill that will be the responsibility of the applicant. However, the liability is capped at 10% of the resources. 3. Patients/guarantors with resources of 400% of the Poverty Guideline for their family size but no more than 1200% of the Poverty Guideline for their family of one will qualify for partial charity if the liability exceeds 20% of their resources. In these situations, the patient/guarantor will be responsible for an amount not to exceed 20% of their resources. 4. If eligible for a charity discount, a patient will receive the discount regardless of whether they pay the balance on the bill. If necessary, payment arrangements may be made on the balance of the patient's bill in accordance with hospital procedures. If charity care eligibility cannot be determined, good stewardship requires that the hospital initially begin the collection process. However, immediately upon determining that the guarantor is eligible for charity care, collection efforts on the balance eligible for charity will cease and the appropriate balance will be designated as charity. TAX-EXEMPT STATUS REQUIREMENTS The Internal Revenue Service Revenue Ruling 69-545 provides that a hospital can demonstrate it has met the community benefit standard by having a full-time emergency room open to the public regardless of ability to pay for services received. Baptist operates Emergency Departments that are open 24 hours a day, 365 days a year and treated 166,659 emergency patients during fiscal year 2014. Baptist facilities and emergency departments post policies stating that patients will be treated regardless of their ability to pay. Depending on the severity of a patient's condition, as a service to the patient Baptist may verify insurance prior to rendering services in the emergency department. Under no circumstances is emergency care delayed by discu 1069722701 true true false true false false false false false true true false false true true false false true false false false false false false false false true true true false true true false false false false false false false true true true false false false false true true true true false false true 852 0 true 10992 true true true false false false false false false false false false X 16 16 true false false false false false false true true false false true true true true true true true true true true KY X CARL G HERDE 5028965011 2701 EASTPOINT PARKWAY Louisville KY 40223 X Robert Baker Director 1.0 0.0 X 3000 0 0 Tom Davis Director 1.0 0.0 X 3000 0 0 Tommy Elliott Director 1.0 0.0 X 3000 0 0 Diane Dalton Evans Director 1.0 0.0 X 3000 0 0 Brenda Hammons Director 1.0 0.0 X 3000 0 0 Robert L Hook Jr Director (THRU 12/31/13) 1.0 0.0 X 3000 0 0 Chris Hutson Director 1.0 0.0 X 3000 0 0 Lindsey Ingram Jr Director 1.0 0.0 X 3000 0 0 Glenn Leveridge Director (THRU 12/31/13) 1.0 0.0 X 3000 0 0 John Logan Director (THRU 12/31/13) 1.0 0.0 X 3000 0 0 Frank R Purdy III Director 1.0 0.0 X 3000 0 0 Steven Reed Director 1.0 0.0 X 3000 0 0 James D Rickard Director 1.0 0.0 X 3000 0 0 Marcia Milby Ridings Director 1.0 0.0 X 3000 0 0 Edmund C Roberts Jr Director 1.0 0.0 X 3000 0 0 Judge Eugene Siler Jr Director 1.0 0.0 X 0 0 0 Thelma White Director 1.0 0.0 X 3000 0 0 Victoria B Buster DIRECTOR (EFF 1/1/14) 1.0 0.0 X 0 0 0 Allen Rudd Director 1.0 0.0 X 3000 0 0 Janet Norton Secretary 40.0 0.0 X 427559 0 124585 Mary Lou Tipgos Asst. Secretary (THRU 6/20/14) 40.0 0.0 X 123572 0 28483 Stephen Hanson President & CEO 40.0 0.0 X 959051 0 21077 William Sisson Vice President 40.0 0.0 X 663469 0 260428 Larry Barton Vice President (THRU 12/2013) 40.0 0.0 X 532305 0 47978 David Gray Vice President 40.0 0.0 X 542350 0 143178 Carl Herde Treasurer & CFO 40.0 0.0 X 584383 0 214226 DOUGLAS A MILLIGAN MD PHYSICIAN 40.0 0.0 X 531103 0 41753 Kelley Clark MD Physician 40.0 0.0 X 500684 0 32494 John R Barton MD Physician 40.0 0.0 X 532763 0 50925 Kenneth Anderson Hospital VP & CMO 40.0 0.0 X 429161 0 48350 curtis high md physician 40.0 0.0 X 419109 0 43608 Tommy Smith President & CEO (thru 3/25/13) 40.0 1.0 X 1047581 0 35339 Susan Stout Tamme Vice President (thru 12/2011) 40.0 0.0 X 407553 0 122692 John Henson Vice President (thru 11/2011) 40.0 0.0 X 328526 0 14150 8080169 0 1229266 345 true true false Central Ky Anesthesia 425 Lewis Hargett Circle LEXINGTON KY 40503 Anesthesia services 3285736 Anesthesiology of Paducah 2507 Broadway PADUCAH KY 42001 Anesthesia services 2407090 ANN OLDFATHER ATTY 1330 South 3rd Street LOUISVILLE KY 40208 legal services 4000000 Kentucky Anesthesia Group 425 Lewis Hargett Circle LEXINGTON KY 40503 Anesthesia services 2000197 DEMAN DATA SYSTEMS LLC 2511 Corporate Way PALMETTO FL 34221 IT SERVICES 1098978 119 0 3938393 662482 0 4600875 Insur & Pt Pmts 621300 711286454 709312666 1973788 0 Medicare & Medicaid Pmts 621300 581709952 581709952 0 0 MGMT FEES-EXEMPT REV 561000 38502645 38502645 0 0 INTERCO INT/MOB RENT 900099 13753294 13753294 0 0 OTHER PROGRAM SVC REV 900099 7595537 7595537 0 0 1352847882 24413621 24413621 0 0 0 0 0 4162572274 317075 4122355961 1056529 40216313 -739454 39476859 39476859 0 0 0 Cafe & Coffee Shops 722514 5992116 0 0 5992116 Purchasing Ptrshp Rev 900099 3138971 3205908 -66937 0 Day Care Center 624410 2438845 0 954174 1484671 7610349 7435909 174440 19180281 1440519518 1361515911 3035465 71367267 2235644 2235644 0 0 0 0 0 0 5306732 0 5306732 0 176805 176805 0 0 485074310 420840803 64233507 0 18260603 15672026 2588577 0 68542129 58057241 10484888 0 32271226 27696539 4574687 0 1995838 1995838 0 0 2180874 67127 2113747 0 230120 0 230120 0 197247 0 197247 0 0 0 0 0 0 0 35317473 26598242 8719231 0 7233204 14922 7218282 0 54788205 42934778 11853427 0 19853022 9848 19843174 0 0 0 0 0 23199565 22504302 695263 0 3228856 2043573 1185283 0 0 0 0 0 289069 207743 81326 0 13105455 13105455 0 0 0 0 0 0 87251935 86910458 341477 0 16552431 397088 16155343 0 Medical Supplies 291518380 290198839 1319541 0 Purchased Svc Non-Medical 29293804 27246579 2047225 0 Provider Tax 20202530 20202530 0 0 Administrative 10828931 8586444 2242487 0 6942814 2019877 4922937 1236077202 1069722701 166354501 0 0 37772 35469 126984548 169211787 0 0 174081503 225193581 0 0 0 0 0 0 25366319 26198593 12742583 13785647 1906020043 1133797680 752916568 772222363 759723635 854722903 0 0 275726608 17358491 13721574 13893473 226532747 193936727 2367833857 2286559034 132352509 144645652 0 0 0 0 600146028 589983112 0 0 0 0 0 0 0 0 104953218 137434156 837451755 872062920 X 1528008016 1412077904 2374086 2418210 0 0 1530382102 1414496114 2367833857 2286559034 X 204442316 44534553 -364862857 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false true 93000 false true 104247 197247 false Part II-B line 1g Direct Contact Fees paid for lobbyist and related expenses. Part II-B Line 1i Other activities for lobbying purposes Lobbying portion of Ky. Hospital Assoc & American Hospital Assoc dues. 762097721 8449636 99265139 9949063 2722321 857141112 706444672 9233782 72369664 23559813 2390584 762097721 648747137 11668086 58290845 10123939 2137407 706444722 596233194 3759866 69420829 18794907 1871845 648747137 556012808 14427582 40798181 13347504 1657873 596233194 0.99700 0.00300 false false 87709653 87709653 820828753 480290056 340538697 865046181 653507624 211538557 132435456 132435456 772222363 Other current assets 7671606 Due from affiliate 85372234 Trustee Funds-Malpractice 68488716 Trustee Funds-Workers Comp 15409401 Trustee Funds-Bond Indenture 6207221 Investments in Joint Ventures 7012580 Unamortized Issue Costs 3774969 193936727 0 Malpractice Liability 88478859 Workers Comp Liability 18306000 Post-Retirement/Misc 24984240 Third Party Payable 5665057 137434156 Schedule D, Part V, Line 4 Intended use of endowment funds The endowment funds are used to support & enhance patient care at the hospitals, finance capital improvements, and provide educational & financial assistance to hospital employees. true true X true X true X true true false true true 65140 64033885 8577875 55456010 0.04490 112286 129858876 113985581 15873295 0.01280 177426 193892761 122563456 71329305 0.05770 35482 1879907 85028 1794879 0.00150 244877 244877 0.00020 125230 41283376 31263369 10020007 0.00810 1679921 1679921 0.00140 160712 45088081 31348397 13739684 0.01120 338138 238980842 153911853 85068989 0.06890 3 496 496 1 10 108 108 15 230 6738 6738 29 60 14767 14767 48 300 22109 22109 true 8712555 2423615 354336462 381648907 -27312445 X true true 4 1 Baptist Health Louisville 4000 Kresge Way Louisville KY 40207 www.baptisteast.com X X X 1 2 Baptist Health Lexington 1740 Nicholasville Rd Lexington KY 40503 www.centralbap.com X X X 1 3 Baptist Health Paducah 2501 Kentucky Ave Paducah KY 42003 www.westernbaptist.com X X X 1 4 Baptist Health Corbin 1 Trillium Way Corbin KY 40701 www.baptistregional.com X X X 1 1 true X X X X X X X X X 11 true false true X www.baptisthealthkentucky.com X X X X X false false true true 200. true 400. true X X X X X X X true true X X X X X true false X X X X true X false false Schedule H, Part V, Section B, Line 3 Baptist Health Louisville (BHLOU) Contacts were made with the Health Departments responsible for the counties in the service area. There are four health departments responsible for the counties BHLou serves: Louisville Metro Public Health & Wellness (Jefferson County); the Bullitt County Health Department; the Oldham County Public Health Department; and the North Central District Health Department, which serves both Shelby and Spencer Counties. Through these contacts, the public meetings that were held, and public surveys conducted in Jefferson and Oldham Counties, BHE solicited primary feedback on the health issues confronting its service area. Schedule H, Part V, Section B, Line 3 Baptist Health Lexington Community input was provided through: 1)The Matrix Group was retained to conduct a perception study within our community. This was completed in 2011. 2) Fayette County Health Department 3)From the larger community stakeholders group, an eight(8) member CHIP Advisory Council was formed. Schedule H, Part V, Section B, Line 3 Baptist Health Paducah Primary data was collected from a survey and a focus group. Primary data was collected through the survey of McCracken County residents, including the hospital employee base. Our committee hosted a community leader focus group Feb. 17, 2012, including 16 key informants representing broad interests of the community. Schedule H, Part V, Section B, Line 3 Baptist Health Corbin Primary data was obtained by Baptist Health Corbin through surveys targeting the community considered in the assessment. The survey data was obtained over a four month time period. Surveys were also conducted through the Whitley County Health Department and Laurel County Health Department/St. Joseph Hospital of London. Meetings were conducted with representatives from the local hospitals and health departments from Knox, Laurel and Whitley. Schedule H, Part V, Section B, Line 7 Baptist Health Lexington Baptist Health Lexington works collaboratively with other community resources to provide, support and serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. It is not within the scope of Baptist Health Lexingtons services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our communitys health status. But it is through networking and partnerships with other community stakeholder organizations and agencies that these issues are being addressed. Impact issues such as unemployment and uninsured populations are being dealt with by economic development groups, Commerce Lexington, Kentucky Chamber of Commerce, Lexington Fayette Urban County Government, and county health departments. Safe neighborhoods/safe community issues are being examined by Lexington Fayette County Police Department, Department of Parks and Recreation, Safe Kids Coalition, and Kentucky Department of Transportation. Schedule H, Part V, Section B, Line 7 Baptist Health Paducah The use of illicit drugs or the abuse of prescription or over-the-counter medications for purposes other than those for which they are indicated or in a manner or in quantities other than directed is a growing problem in McCracken County. This particular issue presents a need that cannot be met by Baptist Health Paducah, but is better met by services already in the community including those at Four Rivers Behavioral Health. Schedule H, Part V, Section B, Line 7 Baptist Health Corbin Community needs were identified and prioritized for the primary counties that we serve including Whitley, Knox and Laurel. Baptist Health Corbin can address and impact several of these needs by implementing programs, education and preventative screenings. Baptist Health Corbin will not be able to address all of the identified needs (i.e. teen births) of our community and may have to partner with other sources that are positioned better to address the remaining needs of our community. SCHEDULE H, PART V, SECTION B, LINE 18 BILLING AND COLLECTIONS Prior to referring INDIVIDUALS to a collection agency, BHS processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Schedule H, Part I, Line 6a COMMUNITY BENEFIT REPORT Each hospital within Baptist Healthcare System ("BHS") (61-0444707) prepares a community benefits report. In addition, a summary community benefits report is prepared on a consolidated basis for all entities within BHS. Schedule H, Part I, Line 7g No physician clinic costs are included in the costs of subsidized health services. Schedule H, Part I, Line 7 COSTING METHODOLOGY BHS utilizes a sophisticated cost accounting system that identifies the cost of delivering care at the individual procedure and item (supply) level for direct costs and a detailed step-down methodology to allocate overhead costs as accurately as possible. Costs are determined for each patient based upon the specific procedures performed and items used for each patient. Patients are also categorized by: 1.patient type (inpatient and outpatient), 2.payer plan (42 unique categories of payer plans. Charity, State-sponsored charity and the Uninsured are among the uniquely identified payer plans), and 3.clinical service (53 unique clinical services). The cost of care for uninsured patients who qualify for "full" charity care (under a State-sponsored or BHS sponsored charity program) is determined by calculating the cost of each uninsured charity patient (at the procedure and item level) and accumulating the cost of each patient. For insured patients who also qualify for partial charity under the BHS sponsored charity program, costs are allocated to each portion (insurance, partial charity, patient payments and bad debt) using the patient's payer plan cost-to-charge ratio (CCR). For example, this CCR is multiplied by the charges covered by insurance to determine the cost of insurance, multiplied by charges covered by partial charity to determine the cost of partial charity, multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt. The cost of care for uninsured patients who do NOT qualify for charity care (full or partial bad debt accounts) are allocated to each portion (patient paid portion and unpaid portion) using the patient's uninsured payer plan CCR. For example, this CCR is multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt. Much care is taken to ensure that costs used for community benefit reporting are directly related to exempt-purpose patient care (excluding physician-related costs) and that costs are reported accurately. For example, the cost of charity and Medicaid are removed from the calculation of the loss on subsidized services. Schedule H, Part III, Line 4 BAD DEBT EXPENSE FOOTNOTE A separate footnote for bad debt expense is not included in the audited financial statements. However, beginning in 2012 BHS reported the provision for uncollectible accounts related to patient service revenue as a deduction from patient service revenue. Costing methodology of bad debt is outlined in Schedule H, Part VI, line 1. The estimated amount of bad debt expense attributable to patients eligible under the organization's FAP was determined using a historical percent to total of net amounts written off as bad debt for those patients with a low propensity to pay or low income to total net amounts written off as bad debt. Schedule H, Part III, Line 8 MEDICARE COSTING METHODOLOGY Medicare revenues and allowable costs were taken from the "as filed" Medicare cost report. Much care is taken to ensure that all adjustments to remove non-allowable costs are taken. Due to the fact that Medicare rates are non-negotiable and are established by the government, all of the shortfall for Medicare should be included as a community benefit. Schedule H, Part III, line 9b COLLECTION PRACTICES Patients and guarantors who qualify for a "full" charity discount will not be billed once the charity determination is made. Patients and guarantors who qualify for a "partial" charity discount will be billed only for the non-discounted portion of their account. Guarantors who have an ability to pay for services will be billed based on the following guidelines. - Patients or guarantors may be asked to pay an estimated patient liability at point of service. - BHS facilities will accept and file claims for all insurances assigned to the organization with adequate proof of coverage. This assignment does not relieve the guarantor of responsibility for payment if the insurer fails to pay as prescribed by regulation, statute or patient-insurance contract. Deductibles, co-payments and non-covered services will be the responsibility of guarantors. - Statements will be sent to guarantors once patient liability is determined for insured or uninsured patients and necessary billing follow-up calls will be made by BHS Patient Financial Services and/or a designated external early out vendor over a period of time averaging from 90 to 120 days. All statements will contain information regarding the availability of financial assistance. If applicable, effort will be made to assist uninsured patients to secure coverage through any governmental or other assistance programs. - Patients requesting detailed charge information will be provided with an itemized bill. - BHS Patient Financial Services will provide all patients the same information concerning services and charges. - Patient accounts not resolved at the end of this cycle will be considered for placement with external collection agencies. Collection agencies will continue to pursue patient balances while maintaining compliance with the Fair Debt Collection Practices Act and the ACA International's Code of Ethics and Professional Responsibility. Schedule H, Part VI, line 2 NEEDS ASSESSMENT BHS conducts a tri-annual planning process that is driven by the strategic vision to be the health care leader in Kentucky. Key industry and community issues (such as prominent health conditions present within each community, underserved areas and underprovided clinical services) are considered and analyzed for their impact on BHS and the four hospitals. Frequently, outside experts reaffirm the assessment and assist in the development of plans to address the community need. A course of action, including key strategies and goals, are shared with and approved by the BHS Board and the Hospital's administrative Boards. Schedule H, Part VI, line 3 PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE Following is a list of various methods/processes used to inform/educate patients on the availability of financial assistance: - financial counselors advise and/or screen uninsured patients before or during hospital services, - a third party vendor advises and/or screens uninsured patients during hospital services, - financial counselors provide follow-up contact for patients missed during services, - the State-sponsored DSH form is provided to all ER uninsured patients, - telephone calls and in-person visits are handled by staff trained to discuss financial assistance, - information regarding financial assistance is included in patient statements. - The BHS sponsored charity care program policy is posted in key areas of each hospital. - The BHS sponsored charity care program policy is posted on the website of each hospital and the System. Schedule H, Part VI, line 4 COMMUNITY INFORMATION BHS is comprised of four regional hospitals. Each one serves a unique and separate geographic area within Kentucky. Baptist Health Louisville (BHLou) opened in 1975 and is located in St. Matthews, approximately five miles east of downtown Louisville area. BHLou is strategically located near Interstate 64, a main access to downtown, and Interstate 264, a main beltway around Louisville. The primary geographic service area for BHLou consists of Jefferson, Oldham and Bullitt Kentucky counties. BHLou serves as a general acute care facility, specializing in services such as cardiovascular services, cancer care and comprehensive rehabilitation services that are much needed in the area. In addition, BHLou operates one of the busiest emergency rooms in the State of Kentucky. Approximately 13.4% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 8.8%, as compared to the national average of 8.2%. Approximately 5% of the patients seeking care at BHELou are Medicaid and approximately 3% are uninsured. Baptist Health Corbin (BHCor) opened in 1986 in Corbin, Kentucky. It is located one-half mile off of Interstate 75, approximately three miles from downtown Corbin and near U.S. Highway 25, which is a main access to several of the surrounding communities. The primary geographic service area for BHCor consists of the counties of Knox, Laurel and Whitley in Kentucky. BHCor serves as a general acute care facility, specializing in services such as psychiatric, substance abuse, comprehensive rehabilitation and emergency care services. The psychiatric program at BHCor has grown over the past several years and BHCor has plans to continue its growth. Approximately 48% of the psychiatric program serves the Medicaid and uninsured populations. Overall, approximately 28% and 12% of the patients seeking care at BHCor are Medicaid and uninsured, respectively. Approximately 13.5% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 9.8%, as compared to the national average of 8.2%. Baptist Health Lexington (BHLex) opened in 1954 in Lexington, the second largest city in Kentucky. It is located approximately five miles from Interstate 75 and Interstate 64 which provide access for the immediate Lexington metro area patients as well as patients from other areas of central and eastern Kentucky which the hospital serves. The primary geographic service area for BHLex consists of the Kentucky counties of Bourbon, Clark, Fayette, Franklin, Jessamine, Madison, Scott and Woodford. In addition, BHLex serves as a regional referral center with approximately 38% of its discharges coming from Kentucky counties outside of the primary service area. As such, BHLex provides tertiary care services not offered by many hospitals in the surrounding areas including specialty cardiovascular, orthopedic and intensive care services. Approximately 15% and 4% of the patients seeking care at BHLex are Medicaid and uninsured, respectively. Approximately 10.8% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 6.7%, as compared to the national average of 8.2%. Baptist Health Paducah (BHPad) was opened in 1953 in Paducah, Kentucky, the largest city in BHPad's service area. The hospital is located approximately one and one-half miles from Interstate 24. BHPad is one of only two hospitals located in Paducah. The primary geographic service area for BHPad consists of Ballard, Carlisle, Graves, Livingston, Lyon, Marshall and McCracken Counties in Kentucky and Massac County in Illinois. BHPad draws nearly 83% of its discharges from the primary service area. BHPad serves as a general acute care facility, specializing in services such as cardiovascular services, cancer care and skilled nursing that are much needed in the area. Approximately 12% and 6% of the patients seeking care at BHPad are Medicaid and uninsured, respectively. Approximately 16.6% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 8.0%, as compared to the national average of 8.2%. Schedule H, Part VI, line 5 PROMOTION OF COMMUNITY HEALTH The BHS Board of Directors is comprised of local representatives who, along with the hospital's management and employees, understand that they are responsible to provide high quality health care services to the communities they serve. Operating healthcare facilities in today's environment requires a delicate balance between producing a sufficient margin to allow for adequate staffing and investment in new technologies, while also providing enough resources to absorb the cost of care for those patients who do not have the ability to pay for the services. In 2014, Baptist was able to re-invest over $109 million into the communities in new technology, construction, renovation and systems improvement.Clear BHS hospitals reach out to the community in many ways through: - Conducting health fairs for local schools, businesses and churches. - Participating in fund-raising and other events to help local agencies such as the American Heart Association, Metro United Way, American Cancer Society, Big Brothers and Big Sisters and the American Red Cross. - Donating hospital space for community group meetings. - Participating on community health assessment teams that are dedicated to identifying and addressing local health needs in each of the counties we serve. - Hosting educational programs, including our pre-natal classes, and Safe Sitter program. - Maintaining necessary, but unprofitable services that meet community needs. - Helping to recruit physicians to underserved areas. - Helping patients coordinate services with other healthcare providers. - Providing resources for support groups, such as cancer recovery groups. - Promoting and providing preventive care services. - Monitoring clinical outcomes in order to ensure quality care. - Committing resources to improving safety and processes of care. - Providing services conveniently accessible by patients. In addition, BHS employees volunteer thousands of hours in community services and leadership. BHS's support for community activities underscores its commitment to improving the lives of those served. Because BHS and its employees contribute so much of their time, talents and resources to serve others, communities served by BHS are better places to live and work. Quantification of many of the community benefits is detailed elsewhere in this schedule. However, what the quantifiable amount doesn't measure is the economic benefit derived by the community from BHS being one of the major employers in the area. The economic impact of the wages paid to BHS employees is significant considering the dollars they spend on food, housing, services, and other products. The Internal Revenue Service Revenue Ruling 69-545 provides that a hospital can demonstrate it has met the community benefit standard by having a full-time emergency room open to the public regardless of ability to pay for services received. BHS hospitals operate an Emergency Department that is open 24 hours a day, 365 days a year and treated over 166,659 emergency patients during fiscal year 2014. BHS and its emergency department posts policies stating that patients will be treated regardless of their ability to pay. Depending on the severity of a patient's condition, as a service to the patient BHS may verify insurance prior to rendering services in the emergency department. Under no circumstances is emergency care delayed by discussions regarding insurance coverage or ability to pay for services. In addition, BHS does not convey or intimate in any way to any emergency medical transportation service an unwillingness to treat any particular patient in need of medical attention. Schedule H, Part VI, line 6 AFFILIATED HEALTH CARE SYSTEM BHS is a nonprofit, tax-exempt organization that owns and operates four hospitals. Baptist Healthcare Affiliates, Inc. is a nonprofit, tax-exempt affiliate that owns and operates an additional hospital. Baptist Health Richmond, Inc. is a nonprofit, tax-exempt affiliate that owns and operates a hospital in Richmond, KY. Baptist Health Madisonville, Inc. is a nonprofit, tax-exempt affiliate that owns and operates a hospital in Madisonville, KY. Baptist Community Health Services, Inc. is a nonprofit, tax-exempt affiliate that owns and operates rehabilitation centers, urgent care centers, and occupational and physical therapy clinics within the regions surrounding the hospitals. Baptist Medical Associates, Inc., Baptist Physicians Lexington, Inc., Baptist Physicians Southeast, Inc. and Western Baptist Medical Ventures, Inc. are nonprofit, tax-exempt affiliates that own and operate physician practices. Baptist Healthcare Foundation, Inc., Baptist Hospital Foundation of Greater Louisville, Inc., Central Baptist Hospital Foundation, Inc., Lexington Cardiac Research Foundation, Inc., and Western Baptist Hospital Foundation, Inc. are nonprofit, tax-exempt affiliate corporations. Bluegrass Family Health, Inc. (BFH) is a nonprofit, taxable affiliate health maintenance organization. Baptist Ventures, Inc. is a for-profit, affiliate corporation. Baptist Physicians' Surgery Center is a for-profit limited liability corporation, of which Baptist Community Health Services, Inc. owns 55%. PET/CT Management, LLC is a for-profit limited liability corporation, of which Baptist Healthcare System, Inc. owns 83%. Corbin Long Term Acute Care, LLC is a limited liability corporation of which Baptist Community Health Services, Inc. is the sole member. Baptist Eastpoint Surgery Center, LLC is a limited liability company of which Baptist Community Health Services, Inc. owns 80%. Baptist Health Employer Solutions, Inc. (BHES), formed in 2010, is a non-profit corporation in which BHS is the sole member. BHES is a network of healthcare providers, hospitals and physicians. BHES's activities and purposes serve to support the charitable activities and operations of BHS. Purchase Health Quality Collaborative, LLC ("PHQC"), formed in 2011, is a non-profit limited liability company whose sole member is BHS. PHQC was formed to support a physician/hospital network established by PHP, working with BH Pad to engage in clinical integration activities. St. Matthews Surgery Center, LLC is a limited liability company formed in October 2011 of which Baptist Community Health Services, Inc. owns 51%. Mercy Regional Emergency Medical System, LLC ("MREMS"), formed in 1996, is a non-profit taxable corporation, which owns and operates an ambulance service in McCracken County, Kentucky in the service area of Western. BHS owns a 50% interest in MREMS and the remaining 50% interest is owned by Mercy Health System, Inc. d.b.a. Lourdes Hospital. All entities are located in the Commonwealth of Kentucky. All entities described in Schedule H, Part VI, line 6 contributed a combined community benefit amount as follows: Charity care at cost $55,456,000 Unreimbursed Medicaid 15,873,000 Community health improvement 1,795,000 Health professions education 245,000 Subsidized health services 10,020,000 Cash and in-kind contributions 1,680,000 ----------- Total community benefit $85,069,000 Community building activities 7,083,713 Other items that also contribute to the benefit of the community: Bad debt at cost $20,650,539 Unreimbursed Medicare $92,495,248 false BAPTIST HLTH FNDTN OF GREATER LOUISVILLE 4000 Kresge Way Louisville KY 40207 200292291 501(c)(3) 455304 General support REFUGE MINISTRIES INC PO Box 25007 Lexington KY 40524 371547506 501(c)(3) 250000 General support COALITION TO PROTECT AMERICAS HEALTHCARE PO BOX 30211 BETHESDA MD 208240211 522253225 501(c)(4) 132500 General support BAPTIST HEALTH FOUNDATION PADUCAH 2501 Kentucky Ave Paducah KY 42003 264057759 501(c)(3) 109118 General support HEALTHFIRST BLUEGRASS 650 Newtown Pike Lexington KY 40508 452710251 501(c)(3) 104167 General support PADUCAH JUNIOR COLLEGE PO Box 7380 Paducah KY 42002 616001156 501(c)(3) 100500 General support HOPE CENTER PO Box 6 Lexington KY 40588 611107296 501(c)(3) 100000 General support PROJECT FIT AMERICA PO BOX 308 BOYeS HOT SPRNGS CA 95416 363730823 501(c)(3) 81750 General support UNIVERSITY OF KENTUCKY 900 S Limestone Lexington KY 40536 616001218 501(c)(3) 79089 Education AMERICAN HEART ASSOCiation 240 Whittington Pkwy Louisville KY 40222 135613797 501(c)(3) 65000 General support AMERICAN CANCER SOCIETY 1504 College Way Lexington KY 40502 640329009 501(c)(3) 49850 General support GREATER PADUCAH ECONOMIC DVLPMNT CNCL PO Box 1155 Paducah KY 420021155 611181577 501(c)(6) 37500 General support SOS INTERNATIONAL INC 1500 Arlington Ave Louisville KY 40206 272624272 501(c)(3) 34920 General support MARCH OF DIMES 196 W Lowry Lane Lexington KY 40503 131846366 501(c)(3) 34500 General support PADUCAH SYMPHONY 2101 Broadway Paducah KY 42001 610965156 501(c)(3) 32000 General support FOUR RIVERS CENTER 100 Kentucky Ave Paducah KY 42001 611293428 501(c)(3) 28590 General support Kentucky Chamber of Commerce 464 CHENAULT RD FRANKFORT KY 406019620 610405718 501(c)(6) 25025 General support COMMERCE LEXINGTON 330 E Main St Ste 100 Lexington KY 40588 610258800 501(c)(3) 25000 General support MISSION LEXINGTON 230 S MLK Blvd Lexington KY 40508 202824933 501(c)(3) 25000 General support KENTUCKY NONPROFIT NETWORK PO BOX 22511 Lexington KY 40522 460963142 501(c)(3) 25000 General support LEXINGTON STRIDES AHEAD COMMERCE LEXINGTON INC 330 E Main St Ste 205 Lexington KY 40507 611322448 501(c)(6) 25000 General support ST NICHOLAS FAMILY CLINIC 1733 Broadway Paducah KY 42001 611260945 501(c)(3) 24500 General support GREATER LOUISVILLE INC 614 W Main St 6000 Louisville KY 40202 237084835 501(c)(3) 20000 General support KENTUCKY LIFT INC 614 W Main St 6000 Louisville KY 40202 464048816 501(c)(4) 20000 General support LEXINGTON CANCER FOUNDATION 1504 College Way Lexington KY 40502 562472701 501(c)(3) 20000 General support METRO UNITED WAY 334 E Broadway Louisville KY 40202 610444680 501(c)(3) 17000 General support FUND FOR THE ARTS 623 W Main St Louisville KY 40202 610479626 501(c)(3) 16000 General support WOMEN LEADING KENTUCKY PO Box 961 Lexington KY 40511 861120254 501(c)(3) 15000 General support ARTHRITIS FOUNDATION 2908 Brownsboro Rd Louisville KY 40206 581341679 501(c)(3) 13000 General support SUSAN KOMEN FOR THE CURE 324 N Ashland Ave Lexington KY 40502 751835298 501(c)(4) 11300 General support KENTUCKIANA HEALTH COLLABORATIVE 1930 Bishop Ln 1023 Louisville KY 40218 450700087 501(c)(3) 10000 General support LEXINGTON RESCUE MISSION PO Box 1050 Lexington KY 40503 611387338 501(c)(3) 10000 General support START THE HEART FOUNDATION 7611 Wolfpen Ridge Ct Prospect KY 40059 463998988 501(c)(3) 10000 General support LEUKEMIA AND LYMPHOMA SOCIETY 301 E MAIN ST Louisville KY 40202 135644916 501(c)(3) 7500 General support CITY OF MADISONVILLE PO Box 705 Madisonville KY 42431 131788491 GOV'T 7500 Community dvlpmnt SOUTHERN KY CHAMBER OF COMMERCE 101 North Depot St Corbin KY 40701 270825308 501(c)(6) 7500 General support ALZHEIMER ASSOCIATION 6100 Dutchmans Ln 401 Louisville KY 40205 133039601 501(c)(3) 7000 General support AMERICAN DIABETES ASSOCiation PO BOX 1638 Merrifield VA 22116 131623888 501(c)(3) 6600 General support AMERICAN LUNG ASSOCiation 1950 Arlingate Ln Columbus OH 43228 314379531 501(c)(3) 6290 General support PADUACH AREA CHAMBER OF COMMERCE PO Box 810 Paducah KY 42002 610210420 501(c)(6) 5773 General support 31 9 Form 990, Schedule I, Part I, Line 2 Description of Organization's Procedures for Monitoring the Use of Grants Baptist Healthcare System provides only direct contributions and other general support; therefore, no monitoring of charitable contributions is performed. X X X X X X true true false false false false false false false Janet Norton Secretary 407994 0 0 0 19565 0 90790 0 33795 0 552144 0 0 0 Mary Lou Tipgos Asst. Secretary (THRU 6/20/14) 116051 0 0 0 7521 0 7960 0 20523 0 152055 0 0 0 DOUGLAS A MILLIGAN MD PHYSICIAN 531103 0 0 0 0 0 16003 0 25750 0 572856 0 0 0 Kelley Clark MD Physician 500684 0 0 0 0 0 14887 0 17607 0 533178 0 0 0 John R Barton MD Physician 532763 0 0 0 0 0 18043 0 32882 0 583688 0 0 0 Tommy Smith President & CEO (thru 3/25/13) 859287 0 0 0 188294 0 5560 0 29779 0 1082920 0 103049 0 Stephen Hanson President & CEO 702441 0 230000 0 26610 0 748 0 20329 0 980128 0 0 0 William Sisson Vice President 592853 0 0 0 70616 0 224458 0 35970 0 923897 0 52043 0 Larry Barton Vice President (THRU 12/2013) 462123 0 0 0 70182 0 18043 0 29935 0 580283 0 33617 0 David Gray Vice President 528522 0 0 0 13828 0 106489 0 36689 0 685528 0 0 0 Susan Stout Tamme Vice President (thru 12/2011) 374756 0 0 0 32797 0 105797 0 16895 0 530245 0 17677 0 John Henson Vice President (thru 11/2011) 0 0 0 0 328526 0 0 0 14150 0 342676 0 0 0 Carl Herde Treasurer & CFO 572751 0 0 0 11632 0 177730 0 36496 0 798609 0 0 0 Kenneth Anderson Hospital VP & CMO 418605 0 0 0 10556 0 14983 0 33367 0 477511 0 0 0 curtis high md physician 419109 0 0 0 0 0 14983 0 28625 0 462717 0 0 0 Form 990, Schedule J, Part I, Line 4a JOHN HENSON'S COMPENSATION REPORTED ON LINE 8, COLUMN (BIII) IS SEVERANCE PAY. HE IS NO LONGER AN OFFICER OF BHS. Form 990, Schedule J, Part I, Line 4b supplemental compensation information During calendar year 2013, FOUR officers of BHS received a payout from a Supplemental Executive Retirement Plan, a nonqualified deferred compensation plan. The Plan is offered to a select group of management as determined by the BHS Executive Benefits Committee. The amounts paid during 2013 were previously reported as compensation on the 990 and were included in W-2 wages in 2013, reported in Schedule J, Part II, column (F) and is a portion of the amount reported in column B (iii). The following individuals received a payout from a Supplemental Executive Retirement Plan, a nonqualified deferred compensation plan: - William Sisson - 52,043 - Susan Stout Tamme - 17,677 - LARRY BARTON - 33,617 - TOMMY SMITH - 103,049 In addition, THREE officers who participate in the Supplemental Executive Retirement Plan accrued amounts for 2014 which is a portion of the amount reported as deferred compensation in Schedule J, column C. Other retirement and deferred compensation reported in Schedule J, column C include amounts for the Retirement Accumulation Plan and Thrift Plan. The following individuals participated in and accrued amounts from the Supplemental Executive Retirement Plan: - William Sisson - 80,593 - Susan Stout Tamme - 85,714 - Carl Herde - 45,666 Schedule J, Part II SUSAN STOUT TAMME IS NO LONGER AN OFFICER OF BHS. SHE IS NOW IN A NEW ROLE, BUT SHE IS STILL EMPLOYED BY BHS. THE CURRENT YEAR COMPENSATION REPORTED ON SCHEDULE J, PART II IS FOR HER NEW ROLE. HER TENURE AS OFFICER ENDED IN DECEMBER 2011. A KY Economic Development Finance Authority 610600439 49126kfm8 2009-02-19 502227848 See Part VI false false false B KY Economic Development Finance Authority 610600439 49126khr5 2011-12-14 136101238 See Part VI false false false A 46065000 0 502247678 0 0 0 4753545 661234 0 99994925 396837974 0 2010 true false true true B 0 0 136715614 0 13542795 0 1458951 0 0 115505030 1617 6207221 false false false true A false false true true false 0.00100 0.00000 0.00100 false false false true B false false false false 0.00000 0.00000 0.00000 false false false true A false true true false 0 false 0 false true B false true false false 0 false 0 false true A true B true Schedule K, Part I, Line A Description of Purpose Series 2009A and 2009B Revenue Bonds were issued to redeem the 1/99, 1/05 & 12/05 Bonds and for the costs of acquiring and constructing hospital facilities and equipment. Schedule K, Part II, Line 3, Column A The diference between Part I, Column (e) and Part II, Line 3 is due to investment earnings of $19,830. Schedule K, Part I, Line B Description of Purpose Series 2011 Fixed Rate Hospital Revenue Bonds were issued for the costs of certain hospital projects, including a portion of the costs of constructing and equipping a new medical structure connected to the existing hospital building at Baptist Health Lexington (fka Central Baptist Hospital). Schedule K, Part II, Line 3, Column B THE DIFERENCE BETWEEN PART I, COLUMN (E) AND PART II, LINE 3 IS DUE TO INVESTMENT EARNINGS OF $614,376. Schedule K, Part II, Col A, Line 7-8 THE AMOUNTS ON THE 8038 REPRESENTED ESTIMATES OF THE ISSUANCE COSTS AND THE CREDIT ENHANCEMENT FEES AND THE AMOUNTS REPORTED HERE ARE ACTUAL AMOUNTS PAID FROM THE PROCEEDS. Schedule K, Part II, Col B, Line 7-8 THE AMOUNTS ON THE 8038 REPRESENTED ESTIMATES OF THE ISSUANCE COSTS AND THE CREDIT ENHANCEMENT FEES AND THE AMOUNTS REPORTED HERE ARE ACTUAL AMOUNTS PAID FROM THE PROCEEDS. Juanita Baker Family member of director 49894 Wages false Nicole Jackson-Gary Family member of director 44023 Wages false PETCT Management Board member 966560 Equipment services false St MatthewS Surgery Center Board member 43596 Management fees false Baptist Physicians Surgery Center Board member 1042417 Lease agreement false Baptist Eastpoint Surgery Center Board member 867292 Mgmt fees & lease agreement false SUSAN D WHITE Family member of director 82888 WAGES false SCHEDULE L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS ALL TRANSACTIONS REPORTED ON PART IV ARE REPORTED AS ARMS-LENGTH FOR FAIR MARKET VALUE. (A) NAME OF PERSON: JUANITA BAKER (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: ROBERT BAKER, DIRECTOR OF BHS, HAS A FAMILY MEMBER EMPLOYED BY BHS. (A) NAME OF PERSON: NICOLE JACKSON-GARY (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FRANCES HAMILTON, DIRECTOR OF BHS, HAS A FAMILY MEMBER EMPLOYED BY BHS. (A) NAME OF PERSON: PET/CT MANAGEMENT (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: JANET NORTON AND DAVID GRAY, Former officer and current OFFICER OF BHS, ARE BOARD MEMBERS OF PET/CT MANAGEMENT, A FOR-PROFIT LIMITED LIABILITY CORPORATION. (A) NAME OF PERSON: ST. MATTHEWs SURGERY CENTER (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DAVID GRAY, VICE PRESIDENT OF BHS, IS A BOARD MEMBER OF ST. MATTHEWS SURGERY CENTER. (A) NAME OF PERSON: BAPTIST PHYSICIANS SURGERY CENTER (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: WILLIAM SISSON, OFFICER OF BHS IS A BOARD MEMBER OF BAPTIST PHYSICIANS SURGERY CENTER, A FOR-PROFIT LIMITED LIABILITY CORPORATION. (A) NAME OF PERSON: BAPTIST EASTPOINT SURGERY CENTER, LLC (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: SUE STOUT TAMME, former OFFICER OF BHS, IS A BOARD MEMBER OF BAPTIST EASTPOINT SURGERY CENTER, LLC. (A) NAME OF PERSON: SUSAN D. WHITE (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: VICTORIA B. BUSTER, DIRECTOR OF BHS, HAS A FAMILY MEMBER EMPLOYED BY BHS. Form 990, Part VI, Sect A, line 2 Description of Relationships The Board of Directors is made up of executives from related organizations. The following individuals have a business relationship in that they serve on the Board of Directors of the organization and are officers and/or directors of a related organization: William Sisson, Carl Herde, Janet Norton, David Gray, Robert Baker, Lindsey Ingram Jr, Victoria Buster and Stephen Hanson. Form 990, Part VI, Sect B, line 11b DESCRIBE THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 A copy of the 990 is provided to the board of directors prior to the filing of the return. Any questions or comments are addressed by explanation or a change to the form. Form 990, Part VI, Sect B, line 12c DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST Annually the secretary of BHS sends out a conflict of interest questionnaire to each of the directors and officers serving on the board of BHS. After completion, they are returned to the secretary and reviewed by the Board or the Governance Effectiveness Committee for any potential conflicts. A conflict of interest is any circumstance, relationship (financial or otherwise), activity or decision (made in the course of governance, management or professional responsibilities or otherwise) that adversely influences or appears to adversely influence the ability of a Covered Person to: 1) make objective decisions on behalf of BHS and/or 2) act in the best interests of BHS in a manner consistent with the tax-exempt purposes of BHS. The Board or Committee will determine by a majority vote of disinterested directors whether the disclosed Financial or Special Interest may result in a Conflict of Interest. Form 990, Part VI, Sect B, line 15a & 15b COMPENSATION DETERMINATION PROCESS Annually in September, the BHS Compensation Committee reviews the compensation, including base compensation and incentive compensation for the CEO and all officers and key employees of BHS except for the Secretary and Assistant Secretary. Compensation for these employees is reviewed and approved by the CEO of BHS. The BHS Compensation Committee is comprised of independent Board Members. The Committee retains a Compensation Consultant to advise the Committee and who provides data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated healthcare organizations. The Committee reviews this information in approving annual base and incentive compensation and other items of reportable compensation described on Schedule J of the IRS Form 990. The decisions of the Committee regarding compensation are contemporaneously documented in the minutes of the Committee. Annually, the Committee Chairperson and the Compensation Consultant provide a report on executive compensation to the full Board of Directors of BHS. Form 990, Part VI, Sect C, line 19 AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN PUBLIC In adherence to the Master Trust Indenture among BHS, Baptist Healthcare Affiliates, Inc. and U.S. Bank National Association, as Master Trustee, Dated as of February 1, 2009, BHS reports its financial results on a quarterly basis to the Master Trustee who in turn makes them available through Electronic Municipal Market Access. Additionally, the organization will provide any documents open to public inspection upon request. Form 990, Part VII HOURS WORKED FOR RELATED ORGANIZATION Officers for BHS provide services to BHS and its subsidiaries. Hours worked are not tracked on an entity by entity basis. Therefore, all officers' hours reported on Form 990, Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors represent aggregate hours worked per week for all entities. Form 990, Part XI, line 9 Other Changes in Net Assets Distribution - BCHS 1,175,488 Distribution - PET/CT 248,215 Funding for strategic & capital needs (104,519,954) Post retirement change (4,965,627) Trsf from other assets (256,800,979) ---------------- TOTAL (364,862,857) Purchase Health Quality Collaborative 2501 Kentucky Avenue Paducah KY 42001 454290974 Phys Ntwrk KY -538190 0 BHSI BAPTIST HEALTHCARE AFFILIATES INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 611226399 HOSPITAL KY 501(c)(3) line 3 bhsi true BAPTIST COMMUNITY HEALTH SERVICES INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 611141242 MEDICAL svcs KY 501(c)(3) line 11a bhsi true Baptist Medical Associates Inc 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 205497203 PHYSICIAN svc KY 501(c)(3) line 3 bhsi true BAPTIST PHYSICIANS LEXINGTON INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 205494939 PHYSICIAN Svc KY 501(c)(3) line 3 bhsi true BAPTIST PHYSICIANS SOUTHEAST INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 260766344 PHYSICIAN Svc KY 501(c)(3) line 3 bhsi true WESTERN BAPTIST MEDICAL VENTURES INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 611194899 PHYSICIAN Svc KY 501(c)(3) line 3 bhsi true BAPTIST HEALTHCARE FOUNDATION INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 311122867 FUNDRAISING KY 501(c)(3) line 11a bhsi true BAPTIST HOSP Fnd OF GRt LOUisville inc 4000 KRESGE WAY LOUISVILLE KY 40207 200292291 FUNDRAISING KY 501(c)(3) line 11a bhsi true BAPTIST HEALTH FOUNDATION LEXINGTON INC 1740 NICHOLASVILLE ROAD LEXINGTON KY 40503 611480774 FUNDRAISING KY 501(c)(3) line 11a bhsi true LEXINGTON CARDIAC RESEARCH Fnd Inc 1740 NICHOLASVILLE ROAD LEXINGTON KY 40503 204242792 MEDICAL RSrch KY 501(c)(3) line 11a bhsi true BAPTIST HEALTH FOUNDATION PADUCAH INC 2501 KENTUCKY AVENUE PADUCAH KY 42003 264057759 FUNDRAISING KY 501(c)(3) line 11a bhsi true MERCY REGIONAL EMERGENCY MEDICAL SYSTEMS 126 LONE OAK ROAD PADUCAH KY 42001 611310466 AMBULANCE Svc KY 501(c)(3) line 11a bhsi true BAPTIST HEALTH RICHMOND INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 610461940 HOSPITAL KY 501(c)(3) line 3 bhsi true BAPTIST HEALTH FOUNDATION RICHMOND INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 311506378 FUNDRAISING KY 501(c)(3) line 11a bhsi true PATTIE A CLAY HOSPITAL AUXILIARY PO BOX 1600 RICHMOND KY 40476 510172717 SUPPORT HOSP KY 501(c)(3) line 11a bhsi true BAPTIST HEALTH MADISONVILLE 900 HOSPITAL DR MADISONVILLE KY 42431 610654587 HOSPITAL KY 501(c)(3) line 3 bhsi true MEDICAL CENTER AMBULANCE SERVICES INC 629 LAFOON STREET MADISONVILLE KY 42431 610946210 AMBULANCE SVC KY 501(C)(3) LINE 9 NA true MUHLENBERG MEDICAL CENTER 200 CLINIC DR MADISONVILLE KY 42431 200108053 RENTAL KY bmmsi UNRELATED BAPTIST EASTMILESTONE LLC 750 CYPRESS STATION DR LOUISVILLE KY 40207 611355065 FITNESS CENTER KY bapt vntrs inc EXCLUDED BAPTIST PHYSICIANS' SRGRY CNTR LLC 1720 NICHOLASVILLE Rd 101 LEXINGTON KY 405031490 043665929 AMBULATORY SRGRY KY bchs RELATED BAPTIST EASTPOINT SRGRY CNTR LLC 2400 EASTPOINT PARKWAY LOUISVILLE KY 40223 260834852 AMBULATORY SRGRY KY bchs RELATED MEDICAL ASSOCS OF MIDDLETOWN LLC 4000 KRESGE WAY LOUISVILLE KY 40207 200399400 MDCL OFFiCe BLDG KY bhsi RELATED false false PETCT MANAGEMENT LLC 7807 SHELBYVILLE RD STE 201 LOUISVILLE KY 40222 200154982 MGMT AND EQPMNT KY bhsi RELATED false false ST MATtHEWS SURGERY CENTER LLC 4130 DUTCHMANS LN STE 300 LOUISVILLE KY 40207 453714318 AMBULATORY SRGRY KY bchs RELATED BAPTIST VENTURES INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 611217018 MANAGEMENT KY bhsi C Corp 1.00000 true BLUEGRASS FAMILY HEALTH INC 651 PERIMETER PARK STE 300 LEXINGTON KY 40223 611241101 INSURANCE KY bhsi C Corp 1.00000 true baptist health network inc 4000 KRESGE WAY LOUISVILLE KY 402074604 272939694 ACO KY bhsi C Corp 1.00000 true MUTUAL CREDIT SERVICES INC PO BOX 149 MADISONVILLE KY 42431 610660705 COLLECTION AGNCY KY BHSI C CORP 4414 801497 1.00000 true baptist medical management svcs 900 hospital drive madisonville KY 42431 371519513 hc mso KY bhsi c corp 122698 611867 1.00000 true true true true true false false false false true true false false false false true true true true Baptist Health Foundation of Greater Louisvil b 455304 Cost Baptist Health Foundation Paducah b 109088 Cost Baptist Health Foundation of Greater Louisvil c 3415551 cost Baptist Health Foundation Paducah c 431372 cost Baptist Healthcare Foundation Inc c 91500 cost Baptist Ventures Inc d 104692 cost Baptist Community Health Services Inc j 2338000 cost Baptist Medical Associates Inc j 2389196 cost Baptist Physicians Lexington Inc j 1395124 cost Baptist Healthcare Affiliates Inc k 370314 cost Baptist Physicians Lexington Inc k 1395124 cost Baptist Community Health Services Inc p 52054 cost Baptist Health Madisonville Inc p 170357 cost Baptist Medical Associates Inc p 3750295 cost Baptist Physicians Lexington Inc p 4157751 cost Baptist Physicians Southeast Inc p 66676 cost PETCT Management LLC p 966560 cost Baptist Community Health Services Inc q 1801271 cost Baptist Health Madisonville Inc q 18245050 cost Baptist Health Richmond Inc q 5762385 cost Baptist Healthcare Affiliates Inc q 7237536 cost Baptist Medical Associates Inc q 4619844 cost Baptist Physicians Lexington Inc q 3185442 cost Baptist Physicians Southeast Inc q 670855 cost Bluegrass Family Health Inc q 12204028 cost Western Baptist Medical Ventures q 1090074 cost Baptist Community Health Services Inc r 5590721 cost Baptist Health Foundation Lexington r 132221 cost Baptist Healthcare Affiliates Inc r 382082 cost Baptist Healthcare Foundation Inc r 139126 cost Baptist Medical Associates Inc r 3601037 cost Baptist Physicians Lexington Inc r 5930124 cost Bluegrass Family Health Inc r 1108521 cost Purchase Health Quality Collaborative r 61895 cost Baptist Community Health Services Inc s 2240884 cost Baptist Health Foundation of Greater Louisvil s 72638 Baptist Health Richmond Inc s 9760505 Baptist Healthcare Affiliates Inc s 13077189 Baptist Physicians Lexington Inc s 206503 Baptist Physicians Southeast Inc s 1221867 Lexington Cardiac Research Foundation Inc s 84664 PETCT Management LLC s 252940 Western Baptist Medical Ventures s 3390463