2013-05-23T15:10:46-05:00 2012-06-30 ERNST & YOUNG US LLP 190 CARONDELET PLAZA SUITE 1300 CLAYTON MO 63105 990 2011-07-01 431767432 MERCY HOSPITAL LEBANON % DOUGLAS HOBAN MERC 3145796100 100 HOSPITAL DRIVE LEBANON MO 65536 Scott Reynolds 2013-05-13 3142901000 2011 2016-02-25 16:41:14Z DOUGLAS HOBAN 100 HOSPITAL DRIVE LEBANON MO 65536 102615076 false 0928 X www.mercy.net X 1996 MO AS THE SISTERS OF MERCY BEFORE US, WE BRING TO LIFE THE HEALING MINISTRY OF JESUS THROUGH OUR COMPASSIONATE CARE AND EXCEPTIONAL SERVICE. 13 8 750 48 14977 0 113239 163569 92448908 101978943 297 1090 0 471474 92562444 102615076 63115 253860 0 0 36484237 34050991 0 0 6034 39384582 48407409 75931934 82712260 16630510 19902816 43504800 38450236 5935182 4751225 37569618 33699011 AS THE SISTERS OF MERCY BEFORE US, WE BRING TO LIFE THE HEALING MINISTRY OF JESUS THROUGH OUR COMPASSIONATE CARE AND EXCEPTIONAL SERVICE. false false 73607130 253860 101978943 MERCY HEALTH SPRINGFIELD COMMUNITIES AND ITS SUBSIDIARIES PROVIDE HIGH-QUALITY, COMPASSIONATE, FAITH-BASED HEALTH CARE IN A VARIETY OF TRADITIONAL MEDICAL SETTINGS. THIS ORGANIZATION, AS PART OF MERCY HEALTH SPRINGFIELD COMMUNITIES, PROVIDES SERVICES TO THE COMMUNITIES WE SERVE, WITH PARTICULAR CONCERN FOR THE ECONOMICALLY POOR, IN THE WAY OF INPATIENT HOSPITAL SERVICES, OUTPATIENT SERVICES, EMERGENCY ROOM CARE, HOME HEALTH SERVICES, AND PHYSICIAN CLINIC OFFICE VISITS. 73607130 true true false true false false false false false false true false false false false false false true false false false false false false false false true true true true true false false false false false false false false false false false false false true true true false false true X 0 0 750 true true true false false false false false false false false false X 13 8 false false false false true true true true true false false true true true true true true false false false X DOUGLAS HOBAN 3145796100 100 HOSPITAL DRIVE LEBANON MO 65536 X David Barbe MD 60.0 X 0 349306 52288 Pat Bauer 1.0 X 0 0 0 Sr Annrene Brau RSM 1.0 X 0 0 0 Craig Curry 1.0 X 0 0 0 John Donald 1.0 X 0 0 0 Michael Gillen 60.0 X 0 257795 23132 John Jack Hopkins MD 60.0 X 0 199985 10146 Kenneth Howe 1.0 X 0 0 0 Beverly Miller 1.0 X 0 0 0 Kenneth Miller 1.0 X 0 0 0 Danelle Richards 60.0 X 344585 0 34499 Michele Schaefer 60.0 X 0 416586 64462 Randy Walters 1.0 X 0 0 0 Jon Swope 60.0 X 0 682221 243717 Chris Knackstedt 60.0 X 0 625750 96425 Scott Reynolds 60.0 X 0 282351 35968 Bradley Kim Day 60.0 X 0 833159 436266 Douglas Hoban 60.0 X 0 153247 18268 Tanya Marion 60.0 X 0 160391 16041 Michael Merrigan 60.0 X 0 320923 65228 Judy O'Connor 60.0 X 152874 0 22002 Roger Campbell MD 40.0 X 362087 0 24723 Gregory Goodwin MD 40.0 X 319098 19091 29475 Alywin Klutz MD 40.0 X 350718 0 25501 Chukwudi Nwodo MD 40.0 X 391099 0 21592 Alan Wilson MD 40.0 X 285125 0 14345 2205586 4300805 1234078 26 false true false HEALTHLINK INC UNION PLANTERS BANK PO BOX 66971N ST LOUIS MO 63166 Care processor 431561 CPSI PO Box 850309 MOBILE AL 36685 Collection agency 357677 MIDWEST CARDIOVASCULAR ULTRASOUND 1565 S JAMESTOWN RD SPRINGFIELD MO 65809 PROFESSIONAL SVCS 290425 3 23339 140230 163569 PATIENT SERVICE REVENUE 622110 100161581 100146604 14977 OTHER OPERATING REVENUE 900099 1817362 1817362 101978943 90 90 0 0 1000 1000 1000 1000 0 0 0 CAF & VENDING 900099 471474 471474 471474 102615076 101963966 14977 472564 234860 234860 19000 19000 0 0 505466 505466 0 25976420 21657299 4319121 1221155 1020600 200555 4592583 3853489 739094 1755367 1474508 280859 0 0 0 0 0 0 2958350 2770168 188182 117117 8157 108959 1518380 868209 650171 0 0 3196982 2920466 276517 123498 84017 39481 0 0 0 0 2974960 2379968 594992 305380 305380 BAD DEBT EXPENSE 10809327 10809327 SHARED SERVICE FEES 11569923 10291720 1278203 REPAIRS & MAINTENANCE 420558 119878 300680 MEDICAL SUPPLIES 14187788 14187788 225146 96830 122282 6034 82712260 73607130 9099096 6034 825280 683686 0 0 0 0 12295160 9585518 0 0 0 0 0 140316 1460295 1368115 17787 19008 48640300 23022919 27412087 25617381 0 0 0 0 1036067 1036212 0 0 458124 0 43504800 38450236 5935182 4751225 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5935182 4751225 X 37569618 33699011 0 0 0 0 37569618 33699011 43504800 38450236 X 19902816 -23773423 X X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 13071 13071 false FORM 990, SCH. C, PART II-B, LINE 1 (I) LOBBYING PORTION OF DUES THE FILING ORGANIZAITON IS A MEMBER OF AND PAYS DUES TO THE FOLLOWING HOSPITAL ASSOCIATIONS: MISSOURI HOSPITAL ASSOCIATION, AMERICAN HOSPITAL ASSOCIATION AND CATHOLIC HEALTH ASSOCIATION. FOR THE YEAR ENDED JUNE 30, 2012, DUE WERE $31,722.31, $9,007 AND $10,597.75, RESPECTIVELY. APPROXIMATELY 32.5% OF MISSOURI HOSPITAL ASSOCIATION DUES, 24.60% OF AMERICAN HOSPITAL ASSOCIATION DUES AND 5.15% OF CATHOLIC HEALTH ASSOCIATION DUES WERE ATTRIBUTABLE TO LOBBYING ACTIVITIES PREFORMED BY THESE ASSOCIATIONS. 763990 763990 25042491 6967632 18074859 738770 722111 16659 21810655 15210255 6600400 284394 122921 161473 25617381 FORM 990, SCHEDULE D, PART X, LINE 2 ASC 740 FOOTNOTE THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF MERCY HEALTH AND AFFILIATES DO NOT INCLUDE A FOOTNOTE TO REPORT THE ORGANIZATION'S LIABILITY FOR UNCERTAIN TAX PROVISIONS UNDER ASC 740, AS THEY ARE DEEMED IMMATERIAL FOR DISCLOSURE. true true X true X true X true true true false true true 2311881 2311881 0.03220 12740330 13436368 -696038 15052211 13436368 1615843 0.02250 94950 94950 0.00130 258059 258059 0.00360 9727 9727 0.00010 362736 362736 0.00500 15414947 13436368 1978579 0.02750 29350 29350 0.00040 4503 4503 0.00010 366 366 34219 34219 0.00050 true 3772650 20783200 23655075 -2871875 X true true 1 1 Mercy Hospital Lebanon

100 Hospital Drive Lebanon MO 65536

X X X Mercy Hospital Lebanon 1 true true 100 true 400. true X X X true true X X X X true false true X false false 6 Mercy Lebanon 120 Hospital Drive

120 Hospital Drive Lebanon MO 65536

Physician Clinic/Practice w/ Urgent Care Mercy Lebanon 331 Hospital Drive

331 Hospital Drive Lebanon MO 65536

Physician Clinic/Practice Mercy Sleep Center

1234 Deadra Drive Lebanon MO 65536

Sleep Center Mercy Home Health and Hospice

1210 Deadra Lebanon MO 65536

Home Care/Hospice Mercy Rolla

1605 Martin Springs Drive Rolla MO 65401

Physician Clinic/Practice Mercy Salem

404 W Rolla Road Salem MO 65560

Primary Care Small FORM 990, SCHDULE H, PART I, LINE 6A THE ORGANIZATION'S COMMUNITY BENEFIT REPORT IS PREPARED BY ITS PARENT ENTITY, MERCY HEALTH SPRINGFIELD COMMUNITIES. FORM 990, SCHEDULE H, PART 1, LINE 7, Column F TOTAL EXPENSES FROM FORM 990, PART IX, LINE 25, COLUMN (A) ARE $82,712,260. INCLUDED IN THIS AMOUNT WAS BAD DEBT EXPENSE (CHARGES) OF $10,809,327. EXPENSES FOR THE PURPOSE OF CALCULATING LINE 7, COLUMN (F) ARE $71,902,933. FORM 990, PART II, EXPLANATION: Mercy Hospital-Lebanon's community building and coalition building activities promote the health of the communities they serve through their participation in community-based events, meetings and by serving on community boards. Coalition building with the meetings with public school districts to discuss and develop the HealthTeacher health and wellness initiative offered at no charge to these schools. FORM 990, SCHEUDLE H, PART III, LINE 2 TO DETERMINE THE AMOUNT OF BAD DEBT EXPENSE, AT COST, BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENT ACCOUNTS WAS MULTIPLIED BY A RATIO OF COST TO CHARGES. THE RATIO OF COST TO CHARGES USED WAS BASED ON DETAILED COST ACCOUNTING, WHERE AVAILABLE. WHERE COST ACCOUNTING IS NOT AVAILABLE, COST REPORT COST TO CHARGE RATIOS WERE UTILIZED. FORM 990, SCHEUDLE H, PART III, LINE 3 THE FILING ORGANIZATION DETERMINED THAT THE ESTIMATED AMOUNT OF BAD DEBT EXPENSE (AT COST) ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S CHARITY CARE POLICY IS $0. ALTHOUGH THE CHARITY CARE POLICY REQUIRES THE PARTICIPATION OF THE PATIENT REQUESTING ASSISTANCE, WE HAVE A PROCESS UNDER PRESUMPTIVE CHARITY (REFER TO DISCLOSURE FOR PART III, #9B) TO ADDRESS ACCOUNTS FOR PATIENTS WHO DO NOT PROVIDE THE INFORMATION. WE BELIEVE THAT OUR CHARITY POLICY IS COMPREHENSIVE ENOUGH TO CAPTURE ALMOST ALL PATIENTS WHO QUALIFY FOR CHARITY CARE. FORM 990, SCHEDULE H, PART III, LINE 4 THE TEXT OF THE FOOTNOTE THAT IS INCLUDED IN MERCY HEALTH AND SUBSIDIARIES AUDITED FINANCIAL STATEMENTS THAT DESCRIBES BAD DEBT EXPENSE IS AS FOLLOWS: "PATIENT ACCOUNTS THAT ARE UNCOLLECTED, INCLUDING THOSE PLACED WITH COLLECTION AGENCIES, ARE INITIALLY CHARGED AGAINST THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS IN ACCORDANCE WITH COLLECTION POLICIES OF THE HEALTH SYSTEM AND, IN CERTAIN CASES, ARE RECLASSIFIED TO CHARITY CARE IF DEEMED TO OTHERWISE MEET THE HEALTH SYSTEM'S CHARITY CARE POLICY. THE PROVISION FOR UNCOLLECTIBLE RECEIVABLES IS BASED ON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTHCARE COVERAGE, AND OTHER COLLECTION INDICATORS. PERIODICALLY THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES BASED UPON THE PAYOR COMPOSITION AND AGING OF RECEIVABLES AS OF THE REPORTING DATE WITH CONSIDERATION OF THE HISTORICAL PAYMENT AND WRITE-OFF EXPERIENCE BY PAYOR CATEGORY. THE RESULTS OF THESE REVIEWS ARE THEN USED TO MAKE ANY MODIFICATIONS TO THE PROVISION FOR UNCOLLECTIBLE RECEIVABLES TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES. AFTER SATISFACTION OF AMOUNTS DUE FROM INSURANCE, THE HEALTH SYSTEM FOLLOWS ESTABLISHED GUIDELINES FOR PLACING PAST-DUE BALANCES WITH COLLECTION AGENCIES." FORM 990, SCHEUDLE H, PART III, LINE 8 IT IS THE POSITION OF MERCY HOSPITAL LEBANON THAT 100% OF ANY SHORTFALL SHOULD BE TREATED AS A COMMUNITY BENEFIT. THIS AMOUNT REPRESENTS THE COST OF PROVIDING SERVICES THAT REMAIN UNCOMPENSATED TO THE PROVIDER. THE UNREIMBURSED COSTS OF MEDICARE IS CALCULATED BY THE GROSS CHARGES NET OF THE COST TO CHARGE RATIO LESS ANY PAYMENTS, DEDUCTIONS OR REIMBURSEMENTS USING THE ANNUAL MEDICARE COST REPORT (CMS FORM 2552-96). FORM 990, SCHEDULE H, PART III, LINE 9B MERCY HOSPITAL LEBANON'S ("MERCY'S") DEBT COLLECTION POLICY PROVIDES THAT MERCY WILL PERFORM A REASONABLE REVIEW OF EACH INPATIENT ACCOUNT BEFORE TURNING AN ACCOUNT TO A THIRD-PARTY COLLECTION AGENT AND PRIOR TO INSTITUTING ANY LEGAL ACTION FOR NON-PAYMENT, TO ASSURE THAT THE PATIENT AND PATIENT GUARANTOR ARE NOT ELIGIBLE FOR ANY ASSISTANCE PROGRAM (E.G., MEDICAID) AND DO NOT QUALIFY FOR COVERAGE THROUGH MERCY'S COMMUNITY ASSISTANCE POLICY. AFTER HAVING BEEN TURNED OVER TO A THIRD-PARTY COLLECTION AGENT, ANY PATIENT ACCOUNT THAT IS SUBSEQUENTLY DETERMINED TO HAVE MET THE MERCY HOSPITAL COMMUNITY ASSISTANCE POLICY IS REQUIRED TO BE RETURNED IMMEDIATELY BY THE THIRD-PARTY COLLECTION AGENT TO MERCY FOR APPROPRIATE FOLLOW-UP. MERCY REQUIRES ITS THIRD-PARTY COLLECTION AGENTS TO INCLUDE A MESSAGE ON ALL STATEMENTS INDICATING THAT IF A PATIENT OR PATIENT GUARANTOR MEETS CERTAIN STIPULATED INCOME REQUIREMENTS, THE PATIENT OR PATIENT GUARANTOR MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE. MERCY UTILIZES THE "SEARCH AMERICA" TOOL TO ENHANCE THE ABILITY TO DETERMINE CHARITY QUALIFICATION. PRESUMPTIVE CHARITY WILL BE GRANTED IN SITUATIONS WHERE MERCY HOSPITAL HAS BEEN UNABLE TO OBTAIN INFORMATION FROM PATIENTS OR THE INFORMATION PROVIDED IS NOT COMPLETE ENOUGH TO MAKE A CHARITY DETERMINATION. MERCY UTILIZES PRESUMPTIVE CHARITY PRIOR TO BAD DEBT PLACEMENT FOR CHARITY ADJUSTMENTS IN EXCESS OF $6,500. IN THESE CASES, MERCY UTILIZES THE SEARCH AMERICA REPORT STATUS OF "PROBABLE CHARITY" AS THE BASIS FOR ASSIGNING THE CHARITY LEVEL. MERCY WILL PURSUE APPROPRIATE MEANS IN THE COLLECTION OF DELINQUENT ACCOUNTS FROM PATIENTS WITH AN ESTABLISHED ABILITY TO PAY OR AN UNWILLINGNESS TO COOPERATE IN VALIDATING ELIGIBILITY FOR FINANCIAL ASSISTANCE. THESE APPROPRIATE MEANS MAY INCLUDE LEGAL ACTION CONSISTENT WITH MERCY MISSION AND VALUES. ADDITIONALLY THEY MAY INCLUDE LIENS UPON REAL PROPERTY AND REASONABLE WAGE GARNISHMENTS. LEGAL ACTIONS WILL GENERALLY NOT INCLUDE BANK GARNISHMENT, REPOSSESSION OF ASSETS OR FORECLOSURES TO ENFORCE SATISFACTION OF A LIEN. MERCY HAS POLICIES AND PROCEDURES ESTABLISHED TO ADDRESS THE INITIATION OF LEGAL ACTION AND ANNUALLY REVIEWS COMPLIANCE WITH ALL POLICIES. FORM 990, SCHEDULE H, PAST V, LINE 19 EACH HOSPITAL FACILITY USED THE AVERAGE DISCOUNT OF THE HIGHEST (BEST PAYING) THREE COMMERCIAL MANAGED CARE PAYERS AS THE BASIS FOR ESTABLISHING UNINSURED DISCOUNT RATES FOR FAP ELIGIBLE INDIVIDUALS. UNDER NO CIRCUMSTANCES, WILL THIS UNINSURED DISCOUNT BE LESS THAN 15%. FORM 990, SCHEDULE H, PART VI, LINE 2: MERCY HOSPITAL LEBANON'S OBJECTIVES OF COMMUNITY NEEDS ASSESSMENT ARE TO IDENTIFY HEALTH NEEDS IN LEBANON, MISSOURI AND THE SURROUNDING COMMUNITIES, AND TO INVOLVE THE COMMUNITY IN THE HEALTH PLANNING EFFORTS. THE INFORMATION GATHERED IS USED TO PLAN STRATEGICALLY, AND BETTER MEET THE HEALTH AND HUMAN SERVICE NEEDS OF THESE COMMUNITIES. MERCY HOSPITAL LEBANON LOOKS AT COMMUNITY NEEDS ASSESSMENT AS AN OPPORTUNITY TO BUILD RELATIONSHIPS, EDUCATE THE COMMUNITY AND IDENTIFY RESOURCES THAT ARE AVAILABLE TO MEET IDENTIFIED NEEDS. BASIC DISCUSSION FORUMS HAVE BEEN UTILIZED TO FOSTER CONVERSATION WITH KEY STAKEHOLDERS. EXAMPLES OF FORUMS INCLUDE AN ADVISORY BOARD, FOCUS GROUPS, OPINION SURVEYS, AND COMMUNITY ROUND TABLE DISCUSSIONS. STAKEHOLDER PARTICIPANTS INCLUDE BOARD MEMBERS, COMMUNITY/CIVIC LEADERS, LOCAL EMPLOYERS, OTHER HEALTH CARE PROVIDERS, FORMER PATIENTS, AND CO-WORKERS. FORM 990, SCHEDULE H, PART VI, LINE 3 PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE MERCY HOSPITAL LEBANON HAS PRINTED MATERIAL AVAILABLE AT EACH POINT OF REGISTRATION IN OUR FACILITY, IN ADDITION TO ELECTRONIC AVAILABILITY AT OUR WEB SITE. SPECIFIC INFORMATION PROVIDED: FINANCIAL ASSISTANCE INFORMATION AS A PART OF OUR HEALING MINISTRY, MERCY HOSPITAL LEBANON IS COMMITTED TO PROVIDING QUALITY HEALTHCARE SERVICES TO PATIENTS REGARDLESS OF THEIR FINANCIAL SITUATION. WE OFFER PAYMENT ASSISTANCE FOR THOSE WHO DO NOT HAVE INSURANCE OR WHO ARE IN FINANCIAL NEED. UNINSURED PATIENT DISCOUNTS A DISCOUNT FROM THE HOSPITAL'S REGULAR BILLED CHARGES WILL BE PROVIDED TO PATIENTS WHO DO NOT HAVE INSURANCE. THIS INCLUDES PATIENTS WHOSE FINANCIAL SITUATION NORMALLY WOULD NOT OTHERWISE QUALIFY THEM FOR CHARITY CARE DISCOUNTS. PATIENTS WITHOUT INSURANCE WHOSE FINANCIAL SITUATION QUALIFIES THEM FOR CHARITY CARE DISCOUNTS (SEE ELIGIBILITY GUIDELINES BELOW) MUST FIRST FIND OUT IF THEY ARE ELIGIBLE FOR MEDICAID BEFORE APPLYING FOR FINANCIAL ASSISTANCE. PATIENTS DENIED MEDICAID ELIGIBILITY THEN MUST PROVIDE CERTAIN INFORMATION TO SHOW FINANCIAL NEED. APPLICATIONS FOR CHARITY CARE DISCOUNTS WILL BE REVIEWED FOR ELIGIBILITY BASED ON THE APPLICANT'S INCOME, FAMILY SIZE, AMOUNT OF PAYMENT DUE AND AVAILABILITY OF OTHER ASSETS OR RESOURCES. PLEASE NOTE THAT CARE MUST BE MEDICALLY NECESSARY TO BE CONSIDERED ELIGIBLE FOR UNINSURED PATIENT DISCOUNTS. ELIGIBILITY GUIDELINES FOR CHARITY CARE DISCOUNTS THE FEDERAL POVERTY GUIDELINES FOR INCOME ARE THE BASIS FOR DETERMINING ELIGIBILITY FOR CHARITY CARE DISCOUNTS. FOR EXAMPLE, INDIVIDUALS WITH INCOMES BELOW 100% OF THE FEDERAL POVERTY GUIDELINES WILL BE ELIGIBLE FOR FREE CARE. INDIVIDUALS WITH INCOMES GREATER THAN 100% OF THE FEDERAL POVERTY GUIDELINES MAY BE ELIGIBLE FOR CARE AT DISCOUNTED RATES DEPENDING ON THEIR INCOME LEVEL AND/OR THE AMOUNT true Lebanon-Laclede Interagency PO BOX 470 Lebanon MO 65536 272819212 501(C)(3) 10000 Community Food Bank Digital Mammography/Bioness Mercy Hospital Lebanon 100 Hospital Drive Lebanon MO 65536 431767432 501(c)(3) 186196 Digital Mammography/Bioness 2 0 SCHOLARSHIPS 10 19000 Form 990, Schedule I, Part I, Line 2 Description of Organization's Procedures for Monitoring the Use of Grants THE ASSISTANCE PROVIDED IS INTENDED TO BE USED FOR THE GENERAL OPERATING PURPOSES OF THE DONEE. THE USE OF GRANT FUNDS IS NOT MONITORED AFTER GRANTS ARE GIVEN. X X X true true false true false false false false false true false David Barbe MD 0 264370 0 59976 0 24960 0 42066 0 10222 0 401594 0 0 Michael Gillen 0 208729 0 28981 0 20085 0 6812 0 16320 0 280927 0 0 John Jack Hopkins MD 0 169899 0 6826 0 23260 0 0 10146 0 210131 0 0 Danelle Richards 323057 0 0 0 21528 0 15061 0 19438 0 379084 0 0 0 Michele Schaefer 0 310176 0 63076 0 43334 0 56610 0 7852 0 481048 0 0 Jon Swope 0 463948 0 191212 0 27061 0 230083 0 13634 0 925938 0 0 Chris Knackstedt 0 408170 0 127077 0 90503 0 83509 0 12916 0 722175 0 0 Scott Reynolds 0 190368 0 48425 0 43558 0 23993 0 11975 0 318319 0 0 Bradley Kim Day 0 598570 0 203887 0 30702 0 422839 0 13427 0 1269425 0 0 Douglas Hoban 0 112381 0 9383 0 31483 0 7161 0 11107 0 171515 0 0 Tanya Marion 0 111560 0 30030 0 18801 0 3958 0 12083 0 176432 0 0 Michael Merrigan 0 214349 0 66366 0 40208 0 49457 0 15771 0 386151 0 0 Judy O'Connor 126168 0 9430 0 17276 0 7333 0 14669 0 174876 0 0 0 Roger Campbell MD 348433 0 0 0 13654 0 5148 0 19575 0 386810 0 0 0 Gregory Goodwin MD 287424 17264 0 0 31674 1827 9407 0 19008 1060 347513 20151 0 0 Alywin Klutz MD 347536 0 0 0 3182 0 5374 0 20127 0 376219 0 0 0 Chukwudi Nwodo MD 365828 0 0 0 25271 0 2615 0 18977 0 412691 0 0 0 Alan Wilson MD 265153 0 8000 0 11972 0 1225 0 13120 0 299470 0 0 0 Form 990, Schedule J, Part I, Question 1 Charter travel is provided to certain employees as and when appropriate, and as deemed necessary for business travel. After charter travel approval has been granted in accordance with the financial justification process, the approved charter travel for business is a reimbursable expense which is not taxable to the employees. Travel for companions is provided in rare instances and in accordance with the co-worker travel and other expense policy and procedures. Where companion travel has resulted in a taxable event, the employees are taxed for such travel. Limited instances of tax gross-ups may have occurred with respect to executives. Form 990, Schedule J, Part I, Question 3 FOR THOSE CLASSIFIED AS OFFICERS (AND THUS DISQUALIFIED PERSONS), THE ORGANIZATION RELIES UPON MERCY HEALTH, WHICH USES THE FOLLOWING TO ESTABLISH THE COMPENSATION: EXTERNAL MARKET SALARY SURVEYS, EXTERNAL MARKET SALARY STUDIES, ENGAGEMENT OF AN INDEPENDENT COMPENSATION CONSULTANT, AND REVIEW/APPROVAL OF COMPENSATION BY THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF MERCY HEALTH. FOR THOSE CLASSIFIED AS KEY EMPLOYEES, MERCY HEALTH USES THE FOLLOWING TO ESTABLISH THE COMPENSATION: EXTERNAL MARKET SALARY SURVEYS, EXTERNAL MARKET SALARY STUDIES, AND REVIEW/APPROVAL OF EXECUTIVE MANAGEMENT. COMPENSATION REVIEWS ARE COMPLETED ON AN ANNUAL BASIS, AND A REVIEW WAS COMPLETED DURING THE REPORTING YEAR. FORM 990, Schedule J, Part I, Question 4b Mercy Health offers supplemental retirement plans to certain executives which provide benefits upon retirement based on compensation, age at the time of benefit commencement, length of service with the company and/or its affiliates, and length of tenure in the plan. The individuals reportable on this return who participate in the supplemental retirement plans include: David Barbe, Michele Schaefer, Jon Swope, Christopher Knackstedt, Bradley Day, and Michael Merrigan. The amount of all accrued benefits is included in compensation amounts provided in amounts provided in Schedule J, Part II, Column (C). Form 990, Schedule J, Part I, Question 7 Mercy Hospital Lebanon provides a non-fixed bonus plan for which certain tiers of its employees are eligible. For fiscal year 2012 (July 1, 2011 - June 30, 2012), payment of all or part of the bonus was contingent upon attainment of certain financial targets. Payments are made annually in October following (I) the conclusion of the fiscal year and (II) determination of goal achievement. Bonus opportunities are tiered percentages and are dependent upon the leadership level and attainment percentage. Mercy's attainment of financial goals is reviewed by the Executive Compensation Committee of Mercy Health and is then taken into account when analyzing executive compensation for reasonableness. FORM 990, PART V, QUESTION 1A VENDORS FOR THE FILING ORGANIZATION ARE PAID BY MERCY HEALTH (EIN 43-1423050). AS SUCH, ALL REQUIRED FORM 1099 AND FORM 1096 REPORTING IS MADE FOR THE ENTIRE HEALTH SYSTEM (WITH LIMITED EXCEPTIONS) UNDER MERCY HEALTH EIN. FORM 990, PART VI, QUESTIONS 6, 7A, & 7B THE FILING ORGANIZATION HAS A SOLE CORPORATE MEMBER, MERCY HEALTH SPRINGFIELD COMMUNITIES. THE CORPORATE MEMBER SHALL HAVE THE FOLLOWING POWERS AND RESPONSIBILITIES, SUBJECT TO THE RESTRICTIONS SET FORTH UNDER THESE BYLAWS: -TO APPROVE THE MISSION AND PHILOSOPHY OF THE CORPORATION; -TO AMEND THE ARTICLES OF INCORPORATION AND BYLAWS, SUBJECT TO ARTICLES XI AND XII HEREIN; -TO APPOINT OR REMOVE MEMBERS OF THE BOARD, SUBJECT TO THE RESTRICTIONS SET FORTH IN ARTICLE V HEREIN; -TO APPOINT OR REMOVE THE PRESIDENT OF THE CORPORATION, SUBJECT TO THE RESTRICTIONS SET FORTH IN ARTICLE VII HEREIN; -TO REVIEW, AMEND, AND APPROVE THE STRATEGIC PLAN, GOALS AND OBJECTIVES OF THE CORPORATION; -TO REVIEW, AMEND, AND APPROVE THE OPERATING, CAPITAL, AND CONSTRUCTION BUDGETS FOR THE CORPORATION; -TO REVIEW OR APPROVE ANY CAPITAL EXPENDITURES OR RECOMMENDATIONS NOT PREVIOUSLY APPROVED AS PART OF THE CORPORATION'S BUDGETS AND/OR STRATEGIC PLAN; -TO LEASE OR SELL OF ANY OF THE ASSETS OF THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION SUBJECT TO THRESHOLDS ESTABLISHED FROM TIME TO TIME BY MERCY HEALTH; -TO ENCUMBER THE ASSETS OF THE CORPORATION OR ANY CORPORATION CONTROLLED BY THE CORPORATION; -TO AUTHORIZE AND APPROVE THE INCURRENCE OF DEBT BY THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION (OTHER THAN DEBT INCURRED FOR THE ACQUISITION OF GOODS THAT ARE ACQUIRED IN THE ORDINARY COURSE OF BUSINESS) AND TO GRANT ANY SECURITY INTERESTS, PLACE ANY ENCUMBRANCES, ENTER INTO ANY COVENANTS, AND EXECUTY ANY DOCUMENTS AND TAKE ANY ACTIONS NECESSARY OR APPROPRIATE IN CONNECTION WITH THE INCURRENCE OF SUCH DEBT; AND, -TO MERGE, DISSOLVE, OR CHANGE THE SPONSORSHIP OF THE CORPORATE MEMBER. FORM 990, PART VI, QUESTION 11B DESCRIBE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM USING INFORMATION PROVIDED BY THE FILING ORGANIZATION. A DRAFT FORM 990 IS REVIEWED BY THE FILING ORGANIZATION'S FINANCE TEAM, INCLUDING THE CONTROLLER AND THE VICE-PRESIDENT OF FINANCE. THE DRAFT FORM 990 IS ALSO REVIEWED BY MERCY HEALTH'S TAX DEPARTMENT, TO ENSURE ACCURACY AND CONSISTENCY WITH OTHER RELATED ORGANIZATIONS' FORM 990S. AFTER QUESTIONS ARISING FROM THE VARIOUS REVIEWS ARE ADDRESSED AND INCORPORATED INTO THE FORM 990, A REVISED DRAFT IS MADE AVAILABLE TO BOTH THE FILING ORGANIZATION'S LEADERSHIP TEAM, INCLUDING THE CFO AND CEO, AND THE BOARD OF DIRECTORS FOR THEIR REVIEW. THE FORM 990 IS THEN SIGNED AND FILED WITH THE IRS. FORM 990, PART VI, QUESTION 12C DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST OFFICERS, DIRECTORS, KEY EMPLOYEES AND OTHER DISQUALIFIED PERSONS ARE REQUIRED TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE ANNUALLY AND DID SO IN THE NORMAL COURSE FOR THE YEAR ENDED JUNE 30, 2012. THIS PROCESS IS ADMINISTERED AT THE MERCY HEALTH LEVEL BY MERCY'S BUSINESS RISK (INTERNAL AUDIT) DEPARTMENT. THE QUESTIONNAIRES ARE REVIEWED WITH LEADERSHIP AT THE LOCAL LEVEL AND POTENTIAL CONFLICTS DISCUSSED AND RESOLVED. THE CONFLICTS AND THEIR RESPECTIVE RESOLUTIONS ARE SHARED AT THE MERCY LEVEL WITH A TEAM INCLUDING MERCY'S CHIEF FINANCIAL OFFICER, CHIEF COMPLIANCE OFFICER AND OTHER MEMBERS OF FINANCE, LEGAL AND HR. SUMMARY RESULTS ARE REVIEWED WITH MERCY'S FINANCE, AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF DIRECTORS. FORM 990, PART VI, LINE 19 PUBLIC AVAILABILITY OF GOVERNING POLICIES GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST BUT ARE NOT PUBLISHED PUBLICLY. FORM 990, PART VII, SECTION A, COLUMN B AVERAGE HOURS PER WEEK SEVERAL INDIVIDUALS LISTED IN PART VII ARE DISCLOSED AS TRUSTEES, DIRECTORS, OFFICERS AND KEY EMPLOYEES ON MULTIPLE FORM 990S OF ENTITIES INCLUDED WITHIN MERCY HEALTH. THE AVERAGE HOURS PER WEEK DISCLOSED IN PART VII IS AN ESTIMATE OF THE HOURS PER WEEK THAT THE LISTED INDIVIDUAL SPENDS ON BOTH THE FILING ORGANIZATION AND ALL RELATED ORGANIZATIONS. FORM 990, PART XI, LINE 5 OTHER CHANGES IN NET ASSETS OR FUND BALANCES NET TRANSFERS BETWEEN RELATED ORGANIZATION = ($23,770,750) TOTAL OTHER CHANGES IN NET ASSETS = ($23,770,750) FORM 990, PART XII, QUESTION 2C OVERSIGHT OR SELECTION PROCESS THE FILING ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED IN MERCY HEALTH AND SUBSIDIARIES ANNUAL FINANCIAL STATEMENT AUDIT. MERCY HEALTH AND SUBSIDIARIES RECEIVED AN UNQUALIFIED OPINION FROM THE EXTERNAL AUDITORS FOR FISCAL 2012 (THE TAX YEAR CURRENTLY BEING REPORTED). HOWEVER, NO SEPARATE AUDIT OPINION IS ISSUED ON THE FINANCIAL STATEMENTS OF THE FILING ORGANIZATION. THE ULTIMATE RESPONSIBILITY FOR OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT AND SELECTION OF THE EXTERNAL AUDITOR LIES WITH THE FINANCE, AUDIT, AND COMPLIANCE COMMITTEE OF MERCY HEALTH BOARD OF DIRECTORS. AUDIT RESULTS ARE COMMUNICATED TO THIS COMMITTEE. Advance Care Hospital 300 Werner Street Hot Springs AR 71913 710816634 Hospital AR 501(C)(3) 3 Mercy Health true Casa de Misericordia 1602 Mcclelland Street Laredo TX 78044 742912461 Shelter TX 501(C)(3) 7 MM Laredo true Laredo Medical Group 14528 S Outer Forty Ste 100 Chesterfield MO 63017 742764726 Inactive TX 501(C)(3) 9 MHS-TX true McAuley Portfolio Management Company 14528 S Outer Forty Ste 100 Chesterfield MO 63017 261708048 Port Mgmt MO 501(C)(3) 11b Mercy Health true Mercy Clinic East Communites 14528 S Outer Forty Ste 100 Chesterfield MO 63017 431771217 Phys Group MO 501(C)(3) 9 MHEC true Mercy Clinic Fort Smith Communitites 7301 Rogers Avenue Fort Smith AR 72917 261318597 Phys Clinic AR 501(C)(3) 9 MHFSC true Mercy Clinic Hot Springs Communitites 1 Mercy Lane Hot Springs AR 71913 261125131 Phys Clinic AR 501(C)(3) 9 MHHSC true Mercy Clinic Oklahoma Communities 4300 W Memorial Road Oklahoma City OK 73120 270473057 Phys Group OK 501(C)(3) 9 MHOC true Mercy Clinic Springfield Communities 1965 Fremont Street Ste 2950 Springfield MO 65804 431560263 Phys Group MO 501(C)(3) 9 MHSC true Mercy Family Center 14528 S Outer Forty Ste 100 Chesterfield MO 63017 721069468 counseling MO 501(C)(3) 7 Mercy Health true Mercy Foundation for Health Innovation 14528 S Outer Forty Ste 100 Chesterfield MO 63017 200901499 Foundation MO 501(C)(3) 11b Mercy Health true Mercy Health 14528 S Outer Forty Ste 100 Chesterfield MO 63017 431423050 Sup Hlth Sys MO 501(C)(3) 1 NA false Mercy Health East Communities 14528 S Outer Forty Ste 100 Chesterfield MO 63017 431718408 Hlth System MO 501(C)(3) 11b Mercy Health true Mercy Health Fort Smith Communities 7301 Rogers Avenue Fort Smith AR 72917 261318515 Holding Co AR 501(C)(3) 11b Mercy Health true Mercy Health Foundation Ardmore 1011 14th Avenue NW Ardmore OK 73401 710962525 Foundation OK 501(C)(3) 11a MH Ardmore true Mercy Health Foundation Berryville 214 Carter Street Berryville AR 72616 710759301 Foundation AR 501(C)(3) 11a MH Berryvill true Mercy Health Foundation Fort Scott 401 Woodland Hills Blvd Fort Scott KS 66701 481077073 Foundation KS 501(C)(3) 11c Mercy KS Com true Mercy Health Foundation Hot Springs 300 Werner Street Hot Springs AR 71913 710804718 Foundation AR 501(C)(3) 11b MHHS true Mercy Health Foundation Independence 800 W Myrtle Independence KS 67301 481079981 Foundation KS 501(C)(3) 11a Mercy KS Com true Mercy Health Foundation Joplin 2817 St Johns Blvd Joplin MO 64804 270906136 Foundation MO 501(C)(3) 11a MHSMKC true Mercy Health Foundation NW Arkansas 2710 Rife Medical Lane Rogers AR 72758 710601687 Foundation AR 501(C)(3) 11c MH Rogers true Mercy Health Foundation OF Oklahoma 4300 W Memorial Road Oklahoma City OK 73120 454732301 Foundation OK 501(C)(3) 11a MHOC true Mercy Health Foundation OK City 4300 W Memorial Road Oklahoma City OK 73120 731593024 Foundation OK 501(C)(3) 11a MHOC true Mercy Health Foundation Springfield 1235 E Cherokee Street Springfield MO 65804 320195818 Foundation MO 501(C)(3) 11b MHSC true Mercy Health Foundation St Louis 14528 S Outer Forty Ste 100 Chesterfield MO 63017 562410020 Foundation MO 501(C)(3) 11b MHEC true Mercy Health Foundation Washington 901 E Fifth Street Washington MO 63090 562410022 Foundation MO 501(C)(3) 11b MHEC true Mercy Health Hot Springs Communities 300 Werner Street Hot Springs AR 71913 261125064 Holding Co AR 501(C)(3) 11b Mercy Health true Mercy Health NW Arkansas Communities 2710 Rife Medical Drive Rogers AR 72758 621684203 Phys Group AR 501(C)(3) 11b Mercy Health true Mercy Health Oklahoma Communities 4300 W Memorial Road Oklahoma City OK 73120 731453048 Holding co OK 501(C)(3) 11b Mercy Health true Mercy Health Springfield Communitites 1235 E Cherokee Street Springfield MO 65804 431856028 Holding Co MO 501(C)(3) 11b Mercy Health false Mercy Health SW MOKS Communitites 2817 St Johns Blvd Joplin MO 64804 300584463 Hlth System MO 501(C)(3) 11b Mercy Health true Mercy Health System of Texas Inc 14528 S Outer Forty Ste 100 Chesterfield MO 63017 742764727 Inactive TX 501(C)(3) 11b Mercy Health true Mercy Home Health Berryville 804 W Freeman Suite 4 Berryville AR 72616 870781247 Home Health AR 501(C)(3) 11c MH Sprngfld true Mercy Hospital Ardmore 1011 14th Avenue NW Ardmore OK 73401 731500629 Hospital OK 501(C)(3) 3 MHOC true Mercy Hospital Aurora 500 Porter Avenue Aurora MO 65605 431936696 Hospital MO 501(C)(3) 3 MHSC true Mercy Hospital Berryville 214 Carter Street Berryville AR 72616 710759299 Hospital AR 501(C)(3) 3 MHSC true Mercy Hospital Carthage 3125 Dr Russell Smith Way Carthage MO 64836 453808607 Hospital MO 501(C)(3) 3 MHSMKC true Mercy Hospital Cassville 94 Main Street Cassville MO 65625 431936699 Hospital MO 501(C)(3) 3 MHSC true Mercy Hospital Columbus 220 Pennsylvania Avenue Columbus KS 66725 270842031 Hospital MO 501(C)(3) 3 MHSMKC true Mercy Hospital El Reno 2115 Parkview Drive El Reno OK 73036 272716065 Hospital OK 501(C)(3) 3 MHOC true Mercy Hospital Fort Smith 7301 Rogers Avenue Fort Smith AR 72917 710240352 Hospital AR 501(C)(3) 3 MHFSC true Mercy Hospital Healdton 918 South 8th Street Healdton OK 73438 263173902 Hospital OK 501(C)(3) 3 MH Ardmore true Mercy Hospital Hot Springs 300 Werner Street Hot Springs AR 71913 710236913 Hospital AR 501(C)(3) 3 MHHSC true Mercy Hospital Joplin 2817 St Johns Blvd Joplin MO 64804 270814858 Hospital MO 501(C)(3) 3 MHSMKC true Mercy Hospital Logan County Inc 200 South Academy Guthrie OK 73044 452998842 Hospital OK 501(C)(3) 3 MHOC true Mercy Hospital of Laredo 14528 S Outer Forty Ste 100 Chesterfield MO 63017 741189682 Inactive TX 501(C)(3) 3 MHS-TX true Mercy Hospital Oklahoma City 4300 W Memorial Road Oklahoma City OK 73120 730579285 Hospital OK 501(C)(3) 3 MHOC true Mercy Hospital Ozark 801 W River Street Ozark AR 72949 710689680 Hospital AR 501(C)(3) 3 MHFS true Mercy Hospital Paris 500 E Academy Paris AR 72855 710655753 Hospital AR 501(C)(3) 3 MHFS true Mercy Hospital Rogers 2710 Rife Medical Lane Rogers AR 72758 710294390 Hospital AR 501(C)(3) 3 MHNWAC true Mercy Hospital Springfield 1235 E Cherokee Street Springfield MO 65804 440552485 Hospital MO 501(C)(3) 3 MHSC true Mercy Hospital Tishomingo 1000 South Byrd Tishomingo OK 73460 274433830 Hospital OK 501(C)(3) 3 MH Ardmore true Mercy Hospital Waldron 1341 W 6th Street Waldron AR 72958 710557895 Hospital AR 501(C)(3) 3 MHFS true Mercy Hospital Watonga Inc 500 Clarence Nash Blvd Watonga OK 73772 455199762 Hospital OK 501(C)(3) 3 MHOC true Mercy Hospitals East Communities 14528 S Outer Forty Ste 100 Chesterfield MO 63017 430653493 Hospital MO 501(C)(3) 3 MHEC true Mercy Kansas Communities Inc 401 Woodland Hills Blvd Ft Scott KS 66701 480956045 Hospital KS 501(C)(3) 3 MHSMKC true Mercy Medical Research Institute 1235 E Cherokee Street Springfield MO 65804 870796305 Research MO 501(C)(3) 4 MHSC true Mercy Ministries of Laredo 2500 Zacatecas Laredo TX 78046 200198462 outreach TX 501(C)(3) 7 Mercy Health true Mercy St Francis Hospital 100 W Highway 60 Mountain View MO 65548 440607149 Hospital MO 501(C)(3) 3 MHSC true Mercy Support Services 14528 S OUTER FORTY STE 100 CHESTERFIELD MO 63017 431677952 Inactive MO 501(C)(3) 11c MHEC true MHM SUPPORT SERVICES 14528 S OUTER FORTY STE 100 CHESTERFIELD MO 63017 202553101 Hlth System MO 501(C)(3) 11B MERCY HEALTH true Mission Clinical Services 300 Werner Street Hot Springs AR 71913 134239691 nursing home AR 501(C)(3) 9 MHHSC true St Edward Mercy Foundation PO Box 17000 Fort Smith AR 72917 237330425 Foundation AR 501(C)(3) 7 MHFS true St John's Children's Hospital Inc 1235 E Cherokee Street Springfield MO 65804 Inactive MO 501(C)(3) 3 MHSC true St Mary's Hospital of Enid Oklahoma 14528 S Outer Forty Ste 100 Chesterfield MO 63017 730614655 Inactive OK 501(C)(3) 3 MHOC true The Sister M Cornelia Blasko Foundation 100 W Highway 60 Mountain View MO 65548 431873914 Foundation MO 501(C)(3) 11a MSFH true Unity Ambulatory Care 14528 S OUTER FORTY STE 100 CHESTERFIELD MO 63017 431861745 Inactive MO 501(C)(3) 11c MHEC true Merc Ambu Surg CTR 7301 Rogers Av Fort Smith AR 72903 710827721 AMBUL SURG CENTER AR NA RES OPT & INNOV 645 Maryville Centre Dr 200 St Louis MO 63141 460468368 CENTRAL DIST. MO NA SO OK DIAG CTR 1011 14TH Ave NW Ardmore OK 73401 431971232 MRI Services OK NA Fort Smith EMS 1701 S Greenwood Fort Smith AR 72901 710416615 Emergency Med AR NA St Ed Mer Med MOB 7301 Rogers Ave Fort Smith AR 72903 710554050 Office Building AR NA Frontenac Properties Inc 14528 S Outer Forty Suite 100 Chesterfield MO 63017 521914421 HOLDING COMP DE NA C-Corp Inveno Health Inc 1235 E Cherokee Street Springfield MO 65804 264509571 IT SERVICES MO NA C-Corp Mercy Community Services Inc 401 Woodland Hills Blvd Fort Scott KS 66701 481078101 Retail Pharmacy KS NA C-Corp Mercy Health Center Condominium Inc 4300 W Memorial Rd Oklahoma City OK 73120 680640970 REAL ESTATE OK NA C-Corp Mercy Health Network of the Southern Reg 1011 14th Avenue NW Ardmore OK 73401 731580607 HEALTH CARE OK NA C-Corp Mercy Health Network Inc 4300 W Memorial Road Oklahoma City OK 73120 731381689 HEALTH CARE OK NA C-Corp Mercy Managed Care Corporation 4300 W Memorial Road Oklahoma City OK 73120 731441665 HOLDING COMP OK NA C-Corp UH L Corp Inc 645 Maryville Centre Drive Suite 1 St Louis MO 63141 742499535 HOLDING COMP MO NA C-Corp Unity Support Services Inc 645 Maryville Centre Drive Suite 1 St Louis MO 63141 431797042 PRACTICE MGT MO NA C-Corp false false false false false false false false false false false false false true true true false false Mercy Clinic Springfield Communities p 1521917 FMV Mercy Health East Communities o 1500394 FMV Mercy Hospital Springfield n 76102 FMV Mercy Hospital Springfield o 5661355 FMV MHM Support Services o 5105042 FMV Resource Optimization & Innovation LLC o 1770815 FMV FORM 990, SCHEDULE R, PART V LAWSON ERP SOFTWARE IS THE PRIMARY ACCOUNTING SOFTWARE USED BY MERCY HEALTH AND SUBSIDIARIES. THE MAJORITY OF THE INTERCOMPANY/RELATED ORGANIZATION TRANSACTIONS ARE PROCESSED THROUGH LAWSON VIA INTERCOMPANY JOURNAL ENTRIES. WITH THE CURRENT DESIGN OF THE ERP SYSTEM, THERE ARE VARIOUS LIMITATIONS ON THE RELATED ORGANIZATION INFORMATION THAT CAN BE EXTRACTED FROM LAWSON. DUE TO THESE LIMITATIONS, MOST OF THE RELATED ORGANIZATION ACTIVITY FOR THE FILING ORGANIZATION HAS BEEN CLASSIFIED ON SCHEDULE R, PART V, IN LINES O AND P.