2013-11-15T11:50:53-06:00 2012-12-31 BKD LLP 1201 Walnut Suite 1700 Kansas City MO 641062246 990 2012-01-01 481088982 Olathe Medical Services Inc % TIERNEY L GRASSER OLAT 9137914461 20333 W 151ST STREET Suite OLATHE KS 66061 TIERNEY L GRASSER 9137914461 2013-11-15 true Michael J Engle 8162216300 2012 2016-03-07 17:11:31Z TIERNEY L GRASSER 20333 W 151ST STREET OLATHE KS 66061 54659845 false X WWW.OLATHEHEALTH.ORG X 1990 KS TO IMPROVE THE HEALTH OF ALL INDIVIDUALS IN THE COMMUNITIES WE SERVE BY PROVIDING COMPASSIONATE, QUALITY HEALTHCARE IN AN ENVIRONMENT OF TRUST AND COLLABORATION. 9 9 684 15 9006 -5708 0 0 52882853 54352260 7684 -18780 177602 281030 53068139 54614510 250 0 0 0 61188729 62082316 0 0 0 15258788 15895196 76447767 77977512 -23379628 -23363002 45078054 46244376 12393820 13401520 32684234 32842856 X THE MISSION OF OLATHE MEDICAL SERVICES IS TO IMPROVE THE HEALTH OF ALL SERVED, BY PROVIDING COMPASSIONATE, QUALITY HEALTHCARE, IN AN ENVIRONMENT OF TRUST AND COLLABORATION. false false 61292175 54455249 SEE SCHEDULE O 61292175 true false false false false false false false false false true false false true true true false true false false false false false false false false false false false true false false false false false false false false false false false false false true true true false false true 41 0 true 684 true true true false false false false false false false false false X 9 9 true false false false true true true true true false true true true true true true true true true true false KS X TIERNEY L GRASSER 9137914461 20333 W 151ST STREET OLATHE KS 66061 CHIP WOOD 2.0 3.0 X X 0 0 0 RICHARD K SUMMERS 1.0 2.0 X X 0 0 0 GERALD W CARSON 1.0 1.0 X X 0 0 0 DAVID R GABOURY 1.0 2.0 X 0 0 0 KRISTEN GISH HERRON MD 1.0 0.0 X 0 0 0 JAMES R HUBBARD 1.0 0.0 X 0 0 0 DOUGLAS HUSTON 1.0 0.0 X 0 0 0 KENNETH STELZER 1.0 1.0 X 0 0 0 CLARK D STEWART 1.0 0.0 X 0 0 0 ELAINE TATHAM 1.0 1.0 X 0 0 0 FRANK H DEVOCELLE 7.0 41.0 X 0 3370702 20372 TIERNEY L GRASSER 9.0 39.0 X 0 406990 121439 PATRICIA A KATZER 50.0 0.0 X 214551 0 16280 JAMES L WETZEL MD 50.0 0.0 X 326495 0 26950 CHERYL L ROSS 10.0 35.0 X 0 111035 14864 RAVI YARLAGADDA MD 50.0 0.0 X 849785 0 23705 RICHARD DOWNEY MD 50.0 0.0 X 733358 0 17042 GREGORY LYNCH MD 50.0 0.0 X 709044 0 67427 STELLA QUIASON MD 50.0 0.0 X 674031 0 63752 BRIAN KINDRED MD 50.0 0.0 X 663088 0 60497 RODNEY D CORN 0.0 0.0 X 0 150524 0 4170352 4039251 432328 106 true true false MCCOWN GORDON CONSTRUCTION CONSTRUCTION 884999 PHYSICIANS REFERENCE LAB LABORATORY SERVICE 587673 CERNER CORPORATION IT SUPPORT 151715 UNITED IMAGING CONSULTANTS XRAY SERVICES 126010 SIRIUS COMPUTER SERVICES IT SUPPORT 121394 9 0 Net Patient Service Revenue 621110 52847956 52847956 ELECTRONIC MEDICAL RECORDS REVENUE 900099 1495298 1495298 OUTSIDE X-RAYS & EKG OVERREADS 900099 9006 9006 54352260 4005 4005 0 0 0 0 0 22550 45335 -22785 -22785 -22785 0 0 0 Research Study 900099 147891 147891 ALL OTHER MISC REVENUE 900099 133139 133139 133139 133139 281030 54614510 54491145 9006 114359 0 0 0 0 506392 406468 99924 0 52955890 40727656 12228234 889563 875735 13828 5034715 4806774 227941 2695756 2571129 124627 0 153125 8004 145121 25140 25140 0 0 0 2473566 1094771 1378795 294580 294580 1042562 208052 834510 779929 24808 755121 0 2598079 2390809 207270 79690 3017 76673 0 166720 164183 2537 103061 103061 0 2339821 2193115 146706 979337 917933 61404 MEDICAL SUPPLIES 3213589 3213589 PROVISION FOR BAD DEBT 1004643 1004643 REPAIRS & MAINTENANCE 377329 353670 23659 Dues and Licenses 207163 184381 22782 56862 40377 16485 77977512 61292175 16685337 0 719366 1318446 0 0 0 0 3986101 3717249 0 0 0 0 0 0 869053 773125 493097 530934 49784589 15551298 34535624 34233291 0 0 0 0 108336 62748 0 0 4366477 5608583 45078054 46244376 10968699 11910703 0 0 0 0 0 0 0 0 0 0 100009 83456 0 0 1325112 1407361 12393820 13401520 X 32684234 32842856 0 0 0 0 32684234 32842856 45078054 46244376 X -23363002 23521624 X false true X true false X 2500 0 150 0 0 2650 49741247 51256321 50771296 52873808 54307358 258950030 0 0 0 0 0 0 0 0 0 0 0 49743747 51256321 50771446 52873808 54307358 258952680 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 258952680 22953 23978 36260 7948 4005 95144 0 22953 23978 36260 7948 4005 95144 0 0 0 0 16183 16183 91748 74908 214272 177338 281030 839296 49858448 51355207 51021978 53059094 54608576 259903303 0.99634 0.99723 0.00037 0.00046 X 5703834 5703834 27925157 5563478 22361679 5347070 2052179 3294891 10445402 7818186 2627216 363126 117455 245671 34233291 Deferred Benefits 5264685 Other Receivables 343898 5608583 0 Due to Affiliates 1407361 1407361 308043553 254433686 254433686 53609867 1004643 1004643 54614510 261241363 184268494 184268494 76972869 1004643 1004643 77977512 UNCERTAIN TAX POSITIONS DISCLOSURE SCHEDULE D, PART X, LINE 2 MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON THEIR REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS. OTHER-REVENUE INCLUDED ON LINE 1 BUT NOT ON FORM 990, PART VIII, LINE 12 SCHEDULE D, PART XI, LINE 2D RELATED ORGANIZATIONS' REVENUE $ 254,433,686 OTHER-REVENUE INCLUDED ON FORM 990, PART VIII, LINE 12, BUT NOT ON LINE 1 SCHEDULE D, PART XI, LINE 4B PROVISION FOR UNCOLLECTIBLE ACCOUNTS $ 1,004,643 OTHER-EXPENSES INCLUDED ON LINE 1 BUT NOT ON FORM 990, PART IX, LINE 25 SCHEDULE D, PART XII, LINE 2D RELATED ORGANIZATION EXPENSES $ 184,268,494 OTHER-EXPENSES INCLUDED ON FORM 99O, PART IX, LINE 25, BUT NOT ON LINE 1 SCHEDULE D, PART XII, LINE 4B PROVISION FOR UNCOLLECTIBLE ACCOUNTS $ 1,004,643 false true false false false false false false false FRANK H DEVOCELLE 0 827087 0 119614 0 2424001 0 0 0 20372 0 3391074 0 2074339 RODNEY D CORN 0 0 0 0 0 150524 0 0 0 0 0 150524 0 153209 TIERNEY L GRASSER 0 322902 0 56117 0 27971 0 94869 0 26570 0 528429 0 18981 PATRICIA A KATZER 192994 0 20315 0 1242 0 2500 0 13780 0 230831 0 0 0 JAMES L WETZEL MD 288998 0 31833 0 5664 0 2500 0 24450 0 353445 0 0 0 RAVI YARLAGADDA MD 848945 0 0 0 840 0 0 0 23705 0 873490 0 0 0 RICHARD DOWNEY MD 724784 0 0 0 8574 0 0 0 17042 0 750400 0 0 0 GREGORY LYNCH MD 706034 0 1750 0 1260 0 41916 0 25511 0 776471 0 0 0 STELLA QUIASON MD 670599 0 1500 0 1932 0 42241 0 21511 0 737783 0 0 0 BRIAN KINDRED MD 660078 0 1750 0 1260 0 39292 0 21205 0 723585 0 0 0 COMPENSATION FROM A RELATED ORGANIZATION FORM 990, PART VII; SCHEDULE J, PART I, LINE 3 AND PART II THE COMPENSATION BEING REPORTED FOR FRANK H DEVOCELLE, RODNEY D CORN AND TIERNEY L GRASSER IS FROM OLATHE MEDICAL CENTER, INC., A RELATED TAX EXEMPT ORGANIZATION. OLATHE MEDICAL CENTER, INC. USES A COMPENSATION COMMITTEE COMPRISED OF INDEPENDENT BOARD MEMBERS TO ESTABLISH COMPENSATION AND BENEFITS FOR ALL OFFICERS OF OLATHE MEDICAL CENTER, INC. AND ITS AFFILIATED CORPORATIONS. THE COMPENSATION COMMITTEE APPROVES AND ESTABLISHES ALL COMPENSATION AND BENEFITS FOR OFFICERS OF OLATHE MEDICAL CENTER, INC. AND ITS AFFILIATED COMPANIES. THE COMPENSATION COMMITTEE UTILIZED AN INDEPENDENT COMPENSATION CONSULTANT, A WRITTEN CONTRACT AND COMPENSATION SURVEYS TO ESTABLISH FAIR MARKET VALUE SALARIES AND BENEFITS FOR OLATHE MEDICAL CENTER, INC. AND ITS AFFILIATES' OFFICERS. ESTABLISHMENT OF OFFICER COMPENSATION FORM 990, PART VII; SCHEDULE J, PART I, LINE 3 AND PART II THE COMPENSATION BEING REPORTED FOR PATRICIA A KATZER AND JAMES L WETZEL MD WAS REVIEWED AND APPROVED BY THE COMPENSATION COMMITTEE OF THE BOARD OF OLATHE MEDICAL CENTER, INC. THE COMPENSATION COMMITTEE UTILIZED AN INDEPENDENT COMPENSATION CONSULTANT, THIRD PARTY SALARY SURVEYS AND WRITTEN CONTRACTS IN THE ESTABLISHMENT OF THEIR COMPENSATION. SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN SCHEDULE J, PART I, LINE 4B & PART II A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) WAS PREVIOUSLY PROVIDED TO FRANK H DEVOCELLE, PRESIDENT AND CEO. INCLUDED IN HIS COMPENSATON IN 2012 IS $2,389,228 IN SERP PAYOUT WHICH REPRESENTS THE VALUE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE AND REPRESENTS HIS 40 YEARS OF SERVICE TO THE ORGANIZATION. $2,074,339 OF THIS AMOUNT HAS PREVIOUSLY BEEN REPORTED IN MR. DEVOCELLE'S COMPENSATION AS SUPPLEMENTAL INCOME IN PREVIOUS YEARS' 990 TAX RETURNS. The total compensation of $150,524 for Rodney D. Corn is a SERP payout. Mr. Corn left the Organization in 2011 and met the requirements for payment in 2012. $153,209 of this amount has previously been reported in Mr. Corn's compensation as supplemental income in previous years. A SERP IS PROVIDED TO TIERNEY L GRASSER, SENIOR VICE PRESIDENT/FINANCE WHICH IS FUNDED OVER A SHORT TIME PERIOD BASED UPON THE IMPLEMENTATION DATE OF THE SERP IN 2005. MS. GRASSER'S CAREER SERVICE AT OLATHE MEDICAL CENTER, INC. AND ITS AFFILIATED ENTITIES IS CURRENTLY AT 24 YEARS, MOST OF WHICH DID NOT INCLUDE FUNDING FOR THE SERP BENEFIT. A MAJORITY OF THE DEFERRED COMPENSATION IS DUE TO FUNDING OF THE SERP BENEFIT FOR PRIOR YEARS OF SERVICE. IN 2012, THERE WAS A PAYOUT OF $23,554 AND AN ACCRUAL OF $94,869. COMPENSATION REPORTED IN PRIOR YEAR FORM 990 SCHEDULE J, PART II, COLUMN F COMPENSATION IS REPORTED ON THE FORM 990 IN THE YEAR THAT THE COMPENSATION IS EARNED BY OR AWARDED TO AN INDIVIDUAL, EVEN IF THE COMPENSATION IS NOT PAID TO THE INDIVIDUAL, IS NOT FULLY VESTED, OR IS SUBJECT TO SUBSTANTIAL RISK OF FORFEITURE. IF COMPENSATION IS EARNED OR AWARDED IN ONE YEAR BUT PAID IN A LATER YEAR, THEN THE COMPENSATION IS GENERALLY REPORTED A SECOND TIME ON THE FORM 990 IN THE YEAR THE COMPENSATION IS PAID TO THE INDIVIDUAL. AS A RESULT OF THE REPORTING REQUIREMENT, AN ORGANIZATION COULD BE REQUIRED TO REPORT THE SAME COMPENSATION AMOUNTS ON THE FORM 990 FOR TWO DIFFERENT YEARS. The amounts reported in column F: include SERP amounts and capital accumulation amounts which were reported in previous 990s as deferred compensation. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A OLATHE MEDICAL SERVICES, INC. (OMSI) CARRIES OUT THEIR MISSION BY PROVIDING PHYSICIAN AND ANCILLARY SERVICES TO THE GENERAL PUBLIC IN THEIR SERVICE AREA REGARDLESS OF RACE, SEX, NATIONAL ORIGIN, HANDICAP, AGE OR ABILITY TO PAY. OMSI NOT ONLY PROVIDES PHYSICIAN AND ANCILLARY SERVICES IN THE OLATHE, KANSAS AREA BUT ALSO IN RURAL AND/OR MEDICALLY UNDERSERVED AREAS IN THE SURROUNDING COUNTIES. IN 2012, OMSI PROVIDED PHYSICIAN AND ANCILLARY SERVICES AS FOLLOWS: PROGRAM NAME NUMBER OF VISITS PRIMARY CARE PHYSICIAN SERVICES 294,018 SPECIALISTS PHYSICIAN SERVICES 101,408 OMSI'S CONTRIBUTIONS TO THE HEALTH OF THE COMMUNITIES INCLUDES: CHARITY AND UNCOMPENSATED CARE OLATHE MEDICAL SERVICE'S MISSION IS TO PROVIDE QUALITY AND COMPASSIONATE HEALTH CARE SERVICES TO INDIVIDUALS IN THE COMMUNITIES IT SERVES. OLATHE MEDICAL SERVICES PROVIDES HEALTH CARE TO INDIVIDUALS WHO HAVE INADEQUATE RESOURCES TO AFFORD THE SERVICES AND ARE UNINSURED OR UNDERINSURED OR PARTICIPATE IN GOVERNMENTAL HEALTH PROGRAMS FOR THE POOR, ELDERLY OR DISABLED. UNCOMPENSATED CARE TO THE POOR INCLUDES THE COST OF PROVIDING CARE TO PATIENTS WHO MEET THE GUIDELINES OF THE OLATHE MEDICAL SERVICES' CHARITY CARE PROGRAM AND THE COST OF PROVIDING CARE IN EXCESS OF REIMBURSEMENT TO PARTICIPANTS IN THE MEDICAID PROGRAM AND OTHER INDIGENT PUBLIC PROGRAMS SUCH AS FREE CLINICS. CHARITY CARE PROVIDED AT COST $684,000 MEDICAID COST IN EXCESS OF PAYMENTS $ 980,000 PROVISION OF CARE IN RURAL HEALTH CLINICS Olathe Medical Services, Inc. has 5 rural health clinics operating in areas designated as medically underserved. These clinics help meet the needs of their respective communities by providing primary care physicians and mid-level providers, lab services and x-ray services. RURAL HEALTH CARE CLINICS COST IN EXCESS OF PAYMENTS $1,478,000 EDUCATIONAL SUPPORT IN ADDITION TO PROVIDING UNCOMPENSATED CARE FOR PATIENTS IN NEED, OLATHE MEDICAL SERVICES PROVIDES OTHER HEALTH CARE RELATED BENEFITS TO THE COMMUNITIES IT SERVES BY PROVIDING EDUCATION FOR A VARIETY OF MEDICAL PROFESSIONALS, INCLUDING MEDICAL STUDENTS' HEALTH CARE SCREENINGS, NURSING STUDENTS, MID-LEVEL PROVIDERS, AND PHYSICIANS. THE COST OF THIS SUPPORT IS $376,000. BUSINESS RELATIONSHIPS FORM 990, PART VI, SECTION A, LINE 2 FRANK H DEVOCELLE AND TIERNEY L GRASSER HAVE A BUSINESS RELATIONSHIP WITH EACH OTHER. THEY SERVE AS OFFICERS FOR OLATHE HEALTH DEVELOPMENT CORPORATION AND OLATHE MEDICAL CENTER DOCTOR'S BUILDING CONDOMINIUM OWNERS ASSOCIATION, INC., WHICH ARE RELATED FOR PROFIT COMPANIES. MEMBER FORM 990, PART VI, SECTION A, LINE 6 OLATHE MEDICAL CENTER, INC., A NOT-FOR-PROFIT, 501(C)(3) ORGANIZATION, IS THE SOLE MEMBER OF OLATHE MEDICAL SERVICES, INC. MEMBER MAY ELECT GOVERNING BODY FORM 990, PART VI, SECTION A, LINE 7A OLATHE MEDICAL CENTER, INC. IS THE SOLE MEMBER OF OLATHE MEDICAL SERVICES, INC. AND HAS THE RIGHT TO ELECT OR APPOINT ALL THE BOARD OF TRUSTEES. GOVERNING BODY DECISIONS SUBJECT TO APPROVAL OF MEMBER FORM 990, PART VI, SECTION A, LINE 7B OLATHE MEDICAL CENTER, INC. IS THE SOLE MEMBER, AND HAS THE RIGHT TO APPROVE OLATHE MEDICAL SERVICES, INC.'S BYLAWS AND ARTICLES OF INCORPORATION AND ALSO APPROVE OLATHE MEDICAL SERVICES' BOARD MEMBERS AND CERTAIN CAPITAL EXPENDITURES OVER $500,000. FORM 990 REVIEW PROCESS FORM 990, PART VI, SECTION B, LINE 11B The tax return form 990 is reviewed by the Audit and compliance Committee of the Olathe Medical Center, Inc. (Olathe Medical Services, Inc.'s sole member) board on behalf of all of its affiliates prior to filing the return with the Internal Revenue Service. The Audit & Compliance Committee is comprised of independent Board members of Olathe Medical Center, Inc. The final form 990 with all required schedules is then provided to all board members for review prior to filing the form 990. CONFLICT OF INTEREST POLICY FORM 990, PART VI, SECTION B, LINE 12C The purpose of the Organization's Conflict of Interest Policy is to protect the organization's interest when it is contemplating a decision or entering into a transaction or arrangement that might benefit the private interest of any person in a position of authority over the organization, or might result in a possible excess benefit transaction. Corporate officers and members of the Board of Trustees review the Conflict of Interest Policy and complete a Disclosure of Information Form annually. A summary of the annual disclosures of information is provided to the full Board for review at least one time per year. The conflict of interest policy calls for any interested person to disclose the existence of a financial relationship or competitive interest in connection with any pending transaction or arrangement. The individual is given the opportunity to disclose all material facts to the Trustees considering the proposed transaction or arrangement that gave rise to the disclosure. When a transaction involves an interested party, the following procedures are followed: 1. The interested party leaves the meeting after providing any material facts or discussion regarding the matter that gives rise to the interest unless requested to stay by the remaining board or committee members. 2. If appropriate, the Board may appoint a non-interested person or committee to investigate alternatives to the proposed transaction. 3. The interested trustee may not vote in the matter that gives rise to the interest. 4. In order to approve the transaction, the Board must first find, by a majority vote of the trustees then in office, without counting the vote of the interested trustee, a. That the proposed transaction is in the Organization's best interests and for its own benefit, and b. That, after reasonable investigation, the Board has determined that the Organization cannot obtain a more advantageous transaction with reasonable efforts under the circumstances. COMPENSATION REVIEW FORM 990, PART VI, SECTION B, LINES 15A & B THE COMPENSATION COMMITTEE OF THE OLATHE MEDICAL CENTER, INC. (OLATHE MEDICAL SERVICES, INC.'S SOLE MEMBER) IS COMPRISED OF INDEPENDENT MEMBERS OF THE BOARD OF OLATHE MEDICAL CENTER, INC. THE COMPENSATION COMMITTEE REVIEWS AND APPROVES THE CEO AND OTHER OFFICERS OF THE COPRORATION'S COMPENSATION IN ACCORDANCE WITH THEIR COMPENSATION POLICY. THE COMPENSATION COMMITTEE REVIEWS THIRD PARTY SALARY SURVEYS, USES INDEPENDENT CONSULTANTS AND ALSO UTILIZES WRITTEN CONTRACTS FOR THE CEO AND THE VP/PHYSICIAN SERVICES TO DETERMINE THE FAIR MARKET VALUE OF THE CURRENT COMPENSATION, SALARY RANGES AND BENEFITS. AVAILABILITY OF DOCUMENTS FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE NOT AVAILABLE TO THE PUBLIC. RECONCILIATION OF NET ASSETS FORM 990, PART XI, LINE 5 TRANSFER FROM AFFILIATE $23,521,624 OLATHE MEDICAL CENTER INC 20333 W 151ST ST OLATHE KS 66061 480577664 HOSPITAL KS 501(C)(3) 3 OHSI true OLATHE HEALTH SYSTEM INC 20333 W 151ST ST OLATHE KS 66061 480979845 SUPPORT ORG KS 501(C)(3) 11B NA false MIAMI COUNTY MEDICAL CENTER INC 2100 BAPTISTE DRIVE PAOLA KS 66071 481155548 HOSPITAL KS 501(C)(3) 3 OMCI true OLATHE MEDICAL CENTER CHARITABLE FDN 20333 W 151ST ST OLATHE KS 66061 481136010 FUNDRAISING KS 501(C)(3) 7 OMCI true OMC DOCTOR'S BLDG CONDO OWNERS ASSOC INC 20333 W 151ST ST OLATHE KS 66061 363445097 REAL ESTATE KS OMCI C CORPORATION 0 0 0.00000 true OLATHE HEALTH DEVELOPMENT CORPORATION 20333 W 151ST ST OLATHE KS 66061 363445097 MEDICAL SERVICES KS OMCI C CORPORATION 0 0 0.00000 true false false true false false false false false true false false false true true true true true false false OLATHE MEDICAL CENTER C 23521624 COST OLATHE MEDICAL CENTER M 91527 COST OLATHE MEDICAL CENTER N 1334505 COST OLATHE MEDICAL CENTER O 12163616 COST OLATHE MEDICAL CENTER Q 9930406 COST MIAMI COUNTY MEDICAL CENTER P 74695 COST MIAMI COUNTY MEDICAL CENTER N 87238 COST