2014-06-17T13:35:34-05:00 2013-08-31 450250958 Eide Bailly LLP 800 Nicollet Mall Suite 1300 Minneapolis MN 554027033 990 2012-09-01 411592761 HealthEast Woodwinds Hospital HEAL 6512321000 PO Box 64624 St Paul MN 551640624 Doug Davenport 6512321000 2014-06-17 1 Kim Hunwardsen P00484560 6122536500 2014-06-12 X 2012 2015-11-30 17:44:51Z Kathryn Correia 559 Capitol Blvd St Paul MN 55103 154573932 0 X www.healtheast.org X 1987 MN HealthEast Woodwinds Hospital an acute care hospital. 15 12 979 408 236904 0 1570794 120853 144534401 151615942 375194 1388015 1196121 1111330 147676510 154236140 0 0 0 0 54907282 55868066 0 0 0 77092550 83661496 131999832 139529562 15676678 14706578 71390361 72271908 6320357 7024016 65070004 65247892 X Rooted in Judeo-Christian values, our mission is high quality, compassionate, cost effective health care for the communities we serve. 0 0 103283765 152549541 HealthEast Woodwinds Health Campus provides innovative, high-quality health care to patients through both inpatient and outpatient services, including primary and specialty care clinics. Woodwinds is a collaboration between HealthEast Care System and Childrens Hospitals and Clinics. The 86-bed hospital is a not-for-profit facility with oversight from both its Board of Directors and the HealthEast Care System Board of Directors. Inpatient:* Critical Care (ICU) * Medical/Surgical Care * Maternity Care * Orthopaedic Specialty Center * Cancer Care (Oncology) * Hospice Care Outpatient: * Surgery * Radiology Care * Heart & Lung Care * Infusion Therapy * Lab * Emergency Woodwinds has created an unprecedented healing environment that revolves around the needs of our patients and their families. We know that privacy, respect and empathy are extremely important during your hospital stay, which is why we developed a compassionate service philosophy that supports our commitment to extraordinary patient care. Woodwinds is proud to be a leader in the health care community. Our philosophy of holistic care recognizes and respects the role of the individual and his/her family in the health care experience. At Woodwinds, we partner with patients and families to: *Support families in their natural care giving roles *Promote normal patterns of living *Offer collaboration and choices in a healing environment HealthEast Woodwinds services listed above support the hospitals 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. HealthEast Woodwinds Hospital fiscal year 2013 statistics: *Hospital Inpatient Admissions: 7,622 *Births: 1,859 *Outpatient Visits: 89,231 *Emergency Department Visits: 27,887 Woodwinds Hospital is part of the HealthEast Care System. 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 four hospitals, as well as 13 clinics, outpatient services, home care and medical transportation. Practicing financial responsibility, HealthEast Care System is one of the largest, locally-owned health care organization 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. *Faith-Based Philosophy: By sustaining HealthEast Care System's Christian heritage and identity, we provide compassionate service that respects the dignity of each person and welcomes all faith traditions, cultures and communities. *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 2013 statistics: *Total Hospital Inpatient Admissions: 34,153 *Total Outpatient Visits: 417,097 *Total Emergency Department Visits: 90,074 *Lab tests: approximately 2.7 Million *Home Care Patients Served: 7,940 *Home Care Patient Visits: 66,750 *Health Alert Subscribers: 3,444 *Clinic Professional Visits: 712,247 *Clinic Ancillary Services: 1,149,062 *Clinic Patients: 152,054 *Patient Transports: 35,716 *Employees: 7,058 103283765 1 1 0 1 0 0 0 0 0 0 1 0 0 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 0 0 0 0 0 1 1 1 0 0 1 X 0 0 979 1 1 1 0 0 0 0 0 0 0 0 0 X 15 12 1 0 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MN X Doug Davenport 6512322300 559 Capitol Boulevard St Paul MN 55103 X Diane M Berthel 0.00 2.00 X 0 34000 0 Julie S Causey 0.00 2.00 X 0 27000 0 Michael R Connly 0.00 2.00 X 0 0 0 Patrick J Donovan 0.00 2.00 X 0 37000 0 John R Finnegan Jr PhD 0.00 2.00 X 0 26000 0 Fred Harris Jr 0.00 2.00 X X 0 65000 0 Roland L Hayes 0.00 2.00 X X 0 41000 0 Louis C Henry Jr 0.00 2.00 X 0 26000 0 Anne M Pearson MD 0.00 40.00 X 0 295261 40616 Leonard M Randolph Jr MD 0.00 2.00 X 0 25833 0 Sister Marie H Seiter CSJ 0.00 2.00 X 0 0 0 Jone M Tiffany 0.00 2.00 X 0 26000 0 Laure Waschbusch MD 0.00 8.10 X 0 31620 0 James W Wiltz 0.00 2.00 X 0 24000 0 Kathryn G Correia 0.00 40.00 X X 0 846021 137030 Daniel Kaye 0.00 40.00 X 0 0 0 Michael F Nass 0.00 40.00 X 0 590260 94449 Scott L North 0.00 40.00 X 0 483699 99712 Catherine J Barr 0.00 40.00 X 0 532910 82443 Thomas A Schmitt 26.70 13.30 X 374431 0 73237 Stephen J Kolar MD 0.00 40.00 X 0 513401 106422 Julie A Schmidt 0.00 40.00 X 0 476546 92627 Michael McMahan 0.00 40.00 X 0 202439 37643 Debra J Hurd 0.00 40.00 X 0 215518 26534 Anthony Nardi MD 40.00 0.00 X 434654 0 50180 Deborah Abney-Lidahl MD 40.00 0.00 X 339244 0 43655 Scott E Nicholls MD 40.00 0.00 X 348349 0 53343 Maryam B Shapland MD 40.00 0.00 X 313987 0 52010 Jonathan C Grimes MD 40.00 0.00 X 324498 0 43670 Larry K Ainsworth 0.00 0.00 X 0 21000 0 Mary L Arnold 0.00 40.00 X 0 253329 42984 Sara Criger 0.00 40.00 X 0 602655 12985 Brendon Cullinan MD 0.00 40.00 X 0 317300 67760 Shirley A Germann 0.00 40.00 X 0 183330 20575 Scott W Hinrichs 0.00 40.00 X 0 274074 99187 Mindy A Smith 0.00 16.70 X 0 431120 79483 Leslie R Stern 0.00 20.00 X 0 269479 50327 Timothy H Hanson 0.00 0.00 X 0 966225 51777 Craig A Svendson MD 0.00 40.00 X 0 563391 87094 Brian Patty MD 0.00 40.00 X 0 480492 87570 Roger E Green 0.00 23.30 X 0 440457 178050 Mary F Pynn 0.00 40.00 X 0 342481 90150 Gerald L Hill MD 0.00 40.00 X 0 327507 51893 Brian Ness MD 0.00 40.00 X 0 373064 50306 2135163 10365412 2003712 46 1 1 0 Health Systems Coop Laundries 55 East Fifth Street Suite 960 St Paul MN 55101 Laundry Services 441260 Children's Hospitals & Clinics 2910 Centerpointe Drive Minneapolis MN 55113 Medical Services 415068 Pulmonary & Critical Care Assoc PA 255 North Smith Avenue Suite 201 St Paul MN 55102 Medical Services 336263 Delta Medical Systems Unit E W239 N2890 Pewaukee Road Pewaukee WI 53072 Equipment Maintenance Services 319899 Executive Health Resources Inc PO Box 822688 Philadelphia PA 191822688 Staffing Services 295692 16 120853 120853 Patient Revenue 622110 149734484 149734484 Meaningful Use Revenue 900099 1524219 1524219 Patient Education/Seminars 611710 291062 291062 Exempt Rental Income 531120 66177 66177 151615942 1392069 1392069 274565 333738 -59173 -59173 -59173 4054 -4054 -4054 -4054 Cafeteria Revenue 722310 624857 624857 Lab Services Revenue 621500 238514 1610 236904 Gift Shop Revenue 453220 225079 225079 82053 82053 1170503 154236140 152549541 236904 1328842 103554 103554 44461543 42891198 1570345 2288360 2207537 80823 5937168 5727472 209696 3077441 2961850 115591 28010 28010 5210 5210 12011192 10024379 1986813 158745 53356 105389 3588637 3071844 516793 1651324 7840 1643484 1591029 1454507 136522 55851 48169 7682 123510 119830 3680 1961325 1961325 2266387 2244426 21961 869715 36261 833454 Medical Supplies 22617105 22617105 D&T Management Fee 15583915 15583915 HealthEast Mgmt Fee 13120732 13120732 Bad Debt Expense 4208138 4208138 3820671 3643318 177353 139529562 103283765 36245797 0 15235 11477 17272683 18924062 28798 13055 1100877 1233317 382129 235058 78577657 26731295 52549596 51846362 41043 8577 71390361 72271908 5991636 6187694 328721 836322 6320357 7024016 X 65070004 65247892 65070004 65247892 71390361 72271908 X 14706578 -14528690 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 5210 5210 0 Explanation of Lobbying Activities: 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. 7918889 7918889 56569271 18191072 38378199 213585 95391 118194 10903807 6262905 4640902 2972105 2181927 790178 51846362 Third Party Settlements 462934 Note Payable - Baxter Infusion Pump Contract 373388 836322 X Description of Uncertain Tax Positions Under FIN 48: 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 had not identified any significant liability for uncertain tax positions, and no such liability is recorded for 2013 or 2012. 1 1 X 1 X 1 X 0 1 1 0 1 1 767991 767991 0.00570 11582178 8771802 2810376 0.02080 2463711 374887 2088824 0.01540 14813880 9146689 5667191 0.04190 175520 43492 132028 0.00100 670075 10286 659789 0.00490 424271 424271 0.00310 1269866 53778 1216088 0.00900 16083746 9200467 6883279 0.05090 2023 2023 0.00000 2023 2023 1 4208138 0 39987057 49389795 -9402738 X 1 1 1 1 HealthEast Woodwinds Hospital

1925 Woodwinds Drive Woodbury MN 55125

X X X HealthEast Woodwinds Hospital 1 1 X X X X X X X 12 1 1 1 X 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 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, L7 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 $4,208,138. Part II: HealthEast Woodwinds Hospital provides 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. Part III, Line 1: The organization reports bad debt in accordance with Healthcare Financial Management Association (HFMA) Statement No. 15 to the extent that HFMA Statement No. 15 follows the Generally Accepted Accounting Principles (GAAP) for the reporting of bad debt. Part III, Line 4: The bad debt expense reported on Part III, Line 2 is reported at charges as recorded by the organization.The allowance for bad debt is based upon the assessment of historical and expected net collections considering business and economic conditions, trends in health care coverage, and other collection indicators.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.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." HealthEast Woodwinds 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 Woodwinds 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. John's HospitalHealthEast St. Joseph's HospitalHealthEast Woodwinds Hospital HealthEast Woodwinds Hospital Part V, Section B, Line 5c: The website where the oranization's CHNA report can be viewed is: http://healtheast.org/community-involvement/community-outreach.html HealthEast Woodwinds 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 Woodwinds Hospital Part V, Section B, Line 7: Health Needs Not AddressedAs HealthEast develops the Community Health Improvement work, we will explore how we are already meeting the needs of the community throughout the organization. We will also identify community partners already embedded in the community with whom we can partner to address unmet needs. We will also consider the following priorities of patients and community residents based on the findings from the needs assessment from the Wilder Research "Framework to Address the Health and Wellness Needs of East Metro Residents."* 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. * Improve Care Coordination *HealthEast patients and Passport member described experiences with perceived lack of care coordination for medical and non-medical needs. * Work with culturally-specific organizations and non-profits *A key role for these community organizations may be to facilitate discussions with community members and HealthEast, to assist with meaningful engagement, particularly with cultural communities. * 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. HealthEast Woodwinds 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. Part VI, Line 2: During the current year, 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 Woodwinds 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 Woodwinds 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 Woodwinds 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, 13 primary care clinics, outpatient services, home care and medical transportation services. With 7,000 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.In fiscal year 2013, HealthEast saw over 34,000 hospital inpatient admissions, 417,000 outpatient visits, 152,000 clinic patients and 90,000 emergency care cases. In 2012, HealthEast's charity care, costs in excess of Medicaid payments, and community benefit operations, education and workforce development reached a total of $69 million, which is more than the benefit gained by being a tax-exempt organization. Reports Filed With States Part VI, Line 7 MN 1 1 0 0 0 0 0 1 0 Anne M Pearson MD 0 277764 0 6426 0 11071 0 22837 0 17779 0 335877 0 7064 Kathryn G Correia 0 594285 0 218999 0 32737 0 116887 0 20143 0 983051 0 218999 Michael F Nass 0 303477 0 154879 0 131904 0 68429 0 26020 0 684709 0 284411 Scott L North 0 340364 0 99509 0 43826 0 69834 0 29878 0 583411 0 140155 Catherine J Barr 0 283758 0 95483 0 153669 0 59720 0 22723 0 615353 0 245953 Thomas A Schmitt 280547 0 88374 0 5510 0 52928 0 20309 0 447668 0 88374 0 Stephen J Kolar MD 0 367740 0 93956 0 51705 0 78882 0 27540 0 619823 0 139000 Julie A Schmidt 0 326232 0 101669 0 48645 0 76852 0 15775 0 569173 0 139496 Michael McMahan 0 189124 0 13315 0 0 0 17497 0 20146 0 240082 0 0 Debra J Hurd 0 195976 0 19542 0 0 0 19852 0 6682 0 242052 0 0 Anthony Nardi MD 344628 0 39400 0 50626 0 28656 0 21524 0 484834 0 50158 0 Deborah Abney-Lidahl MD 308826 0 25000 0 5418 0 27011 0 16644 0 382899 0 0 0 Scott E Nicholls MD 280351 0 25000 0 42998 0 28481 0 24862 0 401692 0 42562 0 Maryam B Shapland MD 259875 0 20001 0 34111 0 24233 0 27777 0 365997 0 0 0 Jonathan C Grimes MD 287774 0 20000 0 16724 0 28313 0 15357 0 368168 0 10780 0 Larry K Ainsworth 0 21000 0 0 0 0 0 0 0 0 0 21000 0 0 Mary L Arnold 0 187924 0 56597 0 8808 0 31609 0 11375 0 296313 0 56597 Sara Criger 0 175122 0 0 0 427533 0 6610 0 6375 0 615640 0 374479 Brendon Cullinan MD 0 233390 0 83072 0 838 0 46201 0 21559 0 385060 0 83072 Shirley A Germann 0 154768 0 28562 0 0 0 11670 0 8905 0 203905 0 28562 Scott W Hinrichs 0 186107 0 61326 0 26641 0 45134 0 54053 0 373261 0 83982 Mindy A Smith 0 271966 0 78562 0 80592 0 55649 0 23834 0 510603 0 113226 Leslie R Stern 0 196368 0 44243 0 28868 0 30617 0 19710 0 319806 0 44243 Timothy H Hanson 0 698956 0 112813 0 154456 0 48399 0 3378 0 1018002 0 156084 Craig A Svendson MD 0 283591 0 105027 0 174773 0 59909 0 27185 0 650485 0 276079 Brian Patty MD 0 292493 0 130076 0 57923 0 63435 0 24135 0 568062 0 172357 Roger E Green 0 285242 0 80272 0 74943 0 149816 0 28234 0 618507 0 111031 Mary F Pynn 0 238563 0 73129 0 30789 0 72679 0 17471 0 432631 0 100468 Gerald L Hill MD 0 297509 0 17500 0 12498 0 26162 0 25731 0 379400 0 10352 Brian Ness MD 0 330222 0 22800 0 20042 0 31464 0 18842 0 423370 0 13213 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 2012. 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 $188,237 Roger E. Green $220,230 Mindy A. Smith $214,869 Leslie R. Stern $159,264 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 2012 W-2 Form. The terms and conditions of this supplemental nonqualified retirement plan is a five year cliff vesting arrangement: Michael F. Nass $129,532 Catherine J. Barr $150,470 Anne M. Pearson, M.D. $ 7,064 Julie A. Schmidt $ 37,828 Stephen J. Kolar, M.D. $ 45,044 Scott W. Hinrichs $ 22,656 Scott L. North $ 40,646 Mindy A. Smith $ 34,665 Sara Criger $374,479 Timothy H. Hanson $ 43,271 Craig A. Svendson, M.D. $171,052 Brian Patty, M.D. $ 42,281 Roger E. Green $ 30,758 Mary F. Pynn $ 27,339 Anthony Nardi, M.D. $ 50,159 Scott E. Nicholls, M.D. $ 42,562 Maryam B. Shapland, M.D. $ 33,754 Johnathan Grimes, M.D. $10,780 Gerald L. Hill, M.D. $10,352 Brian Ness, M.D. $13,213 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: Kathryn Correia Brendon M. Cullinan, M.D. Thomas A. Schmitt Michael McMahan Debra J. Hurd Deborah Abney-Lidahl, M.D. 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. Supplemental Information Part III Part II, Column F: A portion of some amounts shown in column F represent bonuses reported in column B. These bonus amounts were included as deferred compensation in column C of the 2012 tax return as they related to that fiscal year. Health Systems Cooperative Laundries Key employee of the organization, Michael McMahan is a board member of Heal 441260 Laundry Services 0 Tax-Exempt Bond Issues: Form 990, Part IV, Line 24a This organization along with related organizations HealthEast Care System, HealthEast St. John's Hospital and HealthEast St. Joseph's Hospital are equally liable for the repayment of the bonds reported on the HealthEast Care System Form 990. Explanation for number reported in Box 3 of Form 1096: 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 Woodwinds 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 Woodwinds Hospital is HealthEast Care System, a 501(c)(3) tax-exempt, non-profit organization. The member organization does not elect the members of HealthEast Woodwinds Hospital Board of Directors because HealthEast Woodwinds 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 2012. 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. Definition of Officer and Key Employee: Form 990, Part VII During the fiscal, the organization had an internal leadership change 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. Individuals listed as former physicians were listed as highest compensated employees in the past, but are no longer employed by the reporting organization. These individuals are now compensated by a related entity, and meet the requirements for reporting as a former highest paid employee. Average hours worked per week: 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. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Transfers to Parent Organization -14,876,763. Donated Assets 42,073. Minority Interest moved to fund balance 306,000. 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 John's Hospital PO Box 64624 St Paul MN 55164 411456897 Hospital MN 501(c)(3) 3 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 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 N/A HealthEast Surgery Center-Maplewood LLC 1655 Beam Avenue Maplewood MN 55109 203349887 Outpatient Surgery Center MN N/A 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 HealthEast St John's Hospital A 66141 Fair Market Value HealthEast Diversified Services Inc L 236904 Cost D & T Facility Management Company M 15583915 Cost East Metro Insurance LTD M 460067 Cost HealthEast Medical Research Institute M 2643420 Cost HealthEast St Joseph's Hospital M 878195 Cost HealthEast Diversified Services Inc K 332450 Fair Market Value