2015-05-14T15:35:06-05:00 2014-06-30 990 2013-07-01 251441961 Butler Medical Providers BUTL 7242844429 One Hospital Way Butler PA 16001 Anne B Krebs VP of Finance 7242844408 2015-05-14 2013 2016-02-25 16:41:14Z Butler Medical Associates Kenneth DeFurio One Hospital Way Butler PA 160014670 36586151 0 X www.butlerhealthsystem.org X 1983 PA Butler Medical Providers is a multi specialty physician group practice that is dedicated to make a positive difference in the lives of people by providing compassionate high quality care and comfort and inspiring health and wellbeing. 3 0 218 0 0 0 0 0 23209700 29443700 0 11 4812920 7142440 28022620 36586151 0 0 0 0 27229623 34318151 0 0 0 7162712 9893180 34392335 44211331 -6369715 -7625180 9243446 23242362 3613393 6237489 5630053 17004873 Butler Medical Providers is a multi specialty physician group practice that is dedicated to make a positive difference in the lives of people by providing compassionate high quality care and comfort and inspiring health and wellbeing. 0 0 43599432 36586140 In addition to Family Practice, our specialties include Internal Medicine, Infectious Disease, Adult and Pediatric Hospitalists, Electro Physiology, Cardiology, Dermatology, Pathology, General Surgery, Wound Care,Radiation Oncology and Radiology. The practice employs approximately 121 providers and approximately 109 support staff. During the year, we provided care for 143,938 patient visits in the office setting and procedures along with 91,019 hospital (Butler Healthcare Providers) and nursing home visits. Butler Healthcare Providers is a related non-profit corporation. 43599432 1 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 37 0 1 218 1 0 0 0 0 0 0 0 0 0 0 X 3 0 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 PA X X Finance Department 7242844429 One Hospital Way Butler PA 160014670 Kenneth P De Furio Chairman,Pres & CEO 15.00 47.00 X X 0 671449 201578 Stephanie Roskovski Corporate Secretary 25.00 35.00 X X 0 341019 60631 Dennis Demby MD Trustee 40.00 X 220039 0 14754 Anne B Krebs Chief Financial Officer 11.00 44.00 X 0 348161 77874 Samer Azouz MD Physician 40.00 X 732463 0 17223 David A Cowan MD Physician 40.00 X 920456 0 19692 Dean E Wolz MD Physician 40.00 X 589425 0 19692 Sunder R Rao MD Physician 40.00 1.00 X 579540 0 19692 Gregory J Francken MD Physician 40.00 X 547380 0 11882 3589303 1360629 443018 72 0 1 0 Radcom Associates LTD 7 Accee Dr Natrona Hghts PA 15065 Radiology Billing 399519 Emergency Radiology 9 Brookridge Court Bloomington IL 61704 Radiology 356827 Medicus Hospitalists LLC 22 Roulston Road Windham NH 03087 Staffing 328268 Sheridan Radiology Mgmt PO BOX 452796 Sunrise FL 33323 Radiology Staffing 275375 Anna Mnuskin MD PhD 113 Shannon Drive Pittsburgh PA 15238 Pathology 175500 5 Patient Revenue 621110 29443700 29443700 29443700 11 11 Other Operating Revenu 621110 7142440 7142440 7142440 36586151 36586140 0 11 3679792 3679792 27001135 26509175 491960 2218864 2204553 14311 1418360 1380219 38141 10135 10135 22075 21178 897 1171785 1141149 30636 11683 11466 217 1275587 1275587 139859 132415 7444 58902 58060 842 156 156 409626 407881 1745 926374 923102 3272 Purchased services 4541911 4524822 17089 Bad Debt 877149 876276 873 Miscellaneous 447938 443466 4472 44211331 43599432 611899 0 2223187 7599033 5052948 9173547 673533 913540 3980369 2562830 919269 1417539 374509 4138703 9243446 23242362 3613393 6237489 3613393 6237489 X 5630053 17004873 5630053 17004873 9243446 23242362 X -7625180 19000000 X X 0 1 X 1 0 X 100366 100366 860947 669696 191251 257669 143084 114585 2698629 1718938 979691 62758 31112 31646 1417539 Intercompany Receivable 4138703 4138703 X Part X, Line 2: The System follows the guidance for accounting for uncertainty in income taxes recognized in a company's financial statements that prescribes a recognition threshold of more-likely-than-not to be sustained upon examination by the appropriate taxing authority. Measurement of the tax uncertainty occurs if the recognition threshold has been met. The guidance also addresses derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. Management has determined that this guidance had no material effect on the consolidated financial statements. The System's policy is to recognize interest related to unrecognized tax benefits in interest expense and penalties in professional fees and miscellaneous expenses. There were no interest or penalties recognized on the consolidated statements of operations and changes in net assets as a result of this guidance. Generally, tax returns for year ended June 30, 2011, and thereafter remain subject to examination by federal and state tax authorities. 0 1 0 1 0 1 0 1 0 Kenneth P De Furio Chairman,Pres & CEO 0 509005 0 130906 0 31538 0 161497 0 40081 0 873027 0 0 Stephanie Roskovski Corporate Secretary 0 260410 0 64802 0 15807 0 37847 0 22784 0 401650 0 0 Dennis Demby MD Trustee 168827 0 33212 0 18000 0 0 0 14754 0 234793 0 0 0 Anne B Krebs Chief Financial Officer 0 275706 0 55249 0 17206 0 49724 0 28150 0 426035 0 0 Samer Azouz MD Physician 506500 0 185963 0 40000 0 0 0 17223 0 749686 0 0 0 David A Cowan MD Physician 520960 0 374496 0 25000 0 0 0 19692 0 940148 0 0 0 Dean E Wolz MD Physician 494040 0 25000 0 70385 0 0 0 19692 0 609117 0 0 0 Sunder R Rao MD Physician 521540 0 33000 0 25000 0 0 0 19692 0 599232 0 0 0 Gregory J Francken MD Physician 423903 0 98477 0 25000 0 0 0 11882 0 559262 0 0 0 Part I, Line 3 The CEO is paid by Butler Healthcare Providers a non profit related corporation. Butler Healthcare provides uses the following methods to establish compensation for the CEO: compensation committee, independent compensation consultant, Form 990 of other organizations, a written employment contract, compensation survey or study, independent legal review, and approval by the board or compensation committee. Part I, Line 4b 4(b) As part of the Senior Executive Benefit Plan, a related nonprofit corporation, Butler Healthcare Providers contributed to a SERP plan for the following individuals: Kenneth P DeFurio 143,997; Anne B Krebs 33,149;Stephanie Roskovski 31,105 Part I, Line 5 Dennis Demby received a 33,212 bonus based on an individual physician productivity plan that was based on net collections. Compensation is reasonable based upon Medical Group Management Association (MGMA) physician production survey and guidelines. Part I, Line 6 The following physicians received incentives based on overall division net income: Gregory Francken 98,477; David Cowan 375,496 Compensation is reasonable based upon Medical Group Management Association (MGMA) physician production survey and guidelines. Part I, Line 7 The following physician received incentives based upon various indicators including quality incentives, market development and productivity incentives: Samer Azouz 185,963; Dean Wolz 25,000; Sunder Rao 33,000 Form 990, Part VI, Section A, line 6 Per the By-Laws of the organization, the organization shall have one corporate member, Butler Health System, Inc. There shall be no other members. Form 990, Part VI, Section A, line 7a Butler Health System, Inc., the corporate member of the organization, appoints the members of the Board of Trustees. Form 990, Part VI, Section A, line 7b As per the By-Laws of the organization, the subject matters of the powers reserved to the member are as follows: a. The number of Trustees that will comprise the Board. b. The election of Trustees. c. The removal of any Trustee for cause from the Corporation's Board of Trustees and approval of the replacement of any such removed Trustee for the unexpired portion of the term. d. The election, re-election, appointment and reappointment of all Officers of the Board. e. The amendment, revision, or restatement of the Corporation's Articles of Incorporation and/or By-Laws. f. The adoption or change in the mission, purpose, philosophy or objectives of the Corporation. g. The change in the general structure of the Corporation as a voluntary, nonprofit corporation. h. The dissolution, division, conversion or liquidation of the Corporation, the consolidation or merger of the Corporation with another corporation or entity, or the acquisition of substantially all of the assets of another corporation or entity, subject to the provision of the Articles of Incorporation. i. The Corporation's borrowing of money, issuance of indebtedness and/or incurrence of guarantees, whether in a single transaction or a series of related transactions, whether or not such borrowings or guarantees are to be secured by a mortgage, pledge or other lien on the Corporation's current or future real property, personal property or endowment funds. j. Approval of the annual capital and operating budgets of the Corporation and any amendments thereto. k. Approval of any charitable donation by the Corporation, other than to the Member or any nonprofit entity in which the Member is a sole member, in an amount exceeding $15,000 or in an amount exceeding $150,000 in the aggregate during any one fiscal year. l. Approval of any transfer other than charitable donations of the Corporation's assets unless specifically authorized in the Corporation's approved budgets. m. Approval of change of membership or voting rights of the Member. Form 990, Part VI, Section B, line 11 The completed Form 990 was reviewed by the Chief Financial Officer and an outside independent public accounting firm. Relevant sections were reviewed by the Vice President and General Counsel. Highlights of the Form 990 where reviewed with the Board of Trustees. After these reviews, but prior to filing, the full Board of Trustees were notified that the completed Form 990 was available for review on the Board's secure website. Form 990, Part VI, Section B, line 12c The responses to the Conflict of Interest Disclosure form are collected and review annually by General Counsel, who then reviews the same with the Audit and Compliance Committee of the Board of Trustees. Conflict of Interest Disclosure forms are completed by all trustees, officers, committee members as well as the executive team. In the event a relationship results in a potential conflict for an issue being discussed by the Board, the trustee recues himself/herself from the discussion and vote. The recusal is documented in the minutes. The Vice President and General Counsel attends all board meetings and ensures that any needed recusals occur. Form 990, Part VI, Section B, line 15 Butler Health System Executive Compensation Philosophy and Process The Board of Trustees recognizes the great challenges and difficulties that healthcare executives face, particularly in the current era of national and state healthcare reform. In addition, the Pittsburgh regional market is highly competitive and changing rapidly. The Board competes for and seeks executive talent on a national basis. It engages expert compensation consultants, utilizing national comparative data to guide the determination of competitive, appropriate levels of compensation. The total compensation program for executives consists of cash compensation and benefits. Factors taken into consideration in determining compensation for executives include: market demand and competition for similar positions, experience and tenure,and actual performance and effectiveness. Based on these and other pertinent criteria, BHS targets total compensation to fall within a range of the 25th to 75th percentile of the market. BHS executive compensation generally will not exceed the 75th percentile of the market. Exceptions to this may be subject to review and recommendation by the Compensation Committee, which in turn is subject to review and approval by the Board of Trustees. Exception must be supported by organizational and /or individual performance, or a retention/recruitment circumstance that warrants such compensation. The Compensation Committee consists exclusively of independent individuals with no real or perceived conflicts of interest in recommending executive compensation guidelines and levels. While benefits are accounted for in Schedule J, actual "take home" pay to the executive consists only of base salary and incentive award earned, if any. Applicable taxes and other withholdings are deducted. Annual increases in base pay, if any, are based on competitive market trends from the comparison group. Supplemental retirement benefits are used as a vehicle for executive recruitment and retention with appropriate vesting periods. The Board of Trustees reviews and approves executive compensation in its entirety, including the use of "tally sheets", which disclose 100% executive compensation. The Board of Trustees engages external compensation and legal expertise to assure reasonableness of executive compensation levels. Form 990, Part VI, Section C, line 19 Historically financial information is provided to the public at the annual public board meeting. Bylaws, Articles of Incorporation and the Conflict of Interest Policy are posted on the website. Form 990, Part XI, line 9: Transfers to (from) affiliates 19,000,000. Form 990, Part XII, Line 2c: Line XII, Line 2c: The organization has not changed its overview or selection process regarding the audit during the current year. BHS-Nallathambi Medical Associates PLLC One Hospital Way Butler PA 16001 264746949 Primary Care Physician Practice PA 7235025 1418564 Butler Medical Providers Butler Imaging and Interventional Associates LLC One Hospital Way Butler PA 16001 264263364 Radiology Services PA 3180461 558423 Butler Medical Providers BHS-Dermatology Associates LLC One Hospital Way Butler PA 16001 800929620 Dermatology Physician Practice PA 848271 694504 Butler Medical Providers BHS-Seneca Medical Center LLC One Hospital Way Butler PA 16001 464444529 Primary Care Physician Practice PA 2327198 2840620 Butler Medical Providers Butler Health System One Hospital Way Butler PA 160014670 251441855 Healthcare Delivery system PA 501(c)(3) Line 3 0 Butler Healthcare Providers DBA Butler Memorial Hospital One Hospital Way Butler PA 160014670 250965274 Acute Care hospital PA 501(c)(3) Line 3 Butler Health System 0 Nixsar Corporation One Hospital Way Butler PA 160014670 251441960 Own and Operate real estate PA 501(c)(3) Line 3 Butler Health System 0 Butler Health System Foundation One Hospital Way Butler PA 160014670 261543883 Fundraising PA 501(c)(3) Line 11a, I Butler Health System 0 Butler Ambulatory Surgery Center LLC 102 Technology Drive Butler PA 16001 061728190 Surgery Center PA N/A BHS FastERcare One Hosptial Way Butler PA 16001 271961562 Urgent Care PA N/A PCA of Butler PC 480 East Jefferson Street Butler PA 16001 251351445 Physician Office Practice PA C 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 0 0 1