2013-05-14T07:58:37-05:00 2012-06-30 GRANT THORNTON LLP 2001 MARKET STREET SUITE 3100 PHILADELPHIA PA 19103 990 2011-07-01 251838458 Allegheny Specialty Practice Network % MATTHEW PETERSON ALLE 4123306022 C/O Tax Dept Two Allegheny Center Pittsburgh PA 15212 MATTHEW PETERSON 2013-05-10 true 2155614200 2011 2016-02-24 21:20:13Z Matthew Peterson Two Allegheny Center 11th Fl Pittsburgh PA 15212 223322153 false X www.wpahs.org X 1999 PA Form 990, Page 2, Part III, Question 1 2 0 1902 0 0 0 20000000 0 170831115 202144491 13195 312 2712234 21172443 193556544 223317246 3550 4075 0 0 215009548 267605403 0 0 0 53017840 67313512 268030938 334922990 -74474394 -111605744 27637198 30682344 66150552 89975617 -38513354 -59293273 X ALLEGHENY SPECIALTY PRACTICE NETWORK IS AN ORGANIZATION DEFINED BY OUR TALENTED PEOPLE. AN ORGANIZATION COMMITTED TO EXCELLENCE; AN ORGANIZATION WITH ONE PURPOSE AND ONE MISSION. OUR ONE PURPOSE IS TO IMPROVE THE HEALTH OF THE PEOPLE IN THE WESTERN PENNSYLVANIA REGION. OUR ONE MISSION IS TO PRACTICE MEDICINE, EDUCATE AND CONDUCT RESEARCH AS AN INTEGRATED TEAM OF PHYSICIANS, NURSES AND SUPPORT PROFESSIONALS WHO ARE COMMITTED TO IMPROVING THE HEALTH OF OUR PATIENTS. false false 94564412 0 58759709 The purpose of Allegheny Specialty Practice Network is to improve the health of the people in Western Pennsylvania. In order to accomplish this mission, Allegheny Specialty Practice Network provides Internal Medicine services to those individuals in need of medical treatment. 47097476 0 34327460 The purpose of Allegheny Specialty Practice Network is to improve the health of the people in Western Pennsylvania. In order to accomplish this mission, Allegheny Specialty Practice Network provides Anesthesia services to those individuals in need of medical treatment. 32452015 0 24578720 The purpose of Allegheny Specialty Practice Network is to improve the health of the people in Western Pennsylvania. In order to accomplish this mission, Allegheny Specialty Practice Network provides Orthopedic services to those individuals in need of medical treatment. 145179424 4075 84478602 Other Medical Services Provided to Patients 145179424 4075 84478602 319293327 true false false true false false false false true true false false false 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 false false false false true 297 0 true 1902 true false false false false false false false false false false X 2 0 false true false false false false false true true false false true true true true true true true true true true PA X X MATTHEW PETERSON 4123306005 TWO ALLEGHENY CENTER 11TH FLOOR Pittsburgh PA 15212 Roy Santarella 1.0 X X 0 971890 0 Matthew Peterson 1.0 X X 0 177970 0 Diane Dismukes 1.0 X X 0 739638 0 Tony Farah MD 40.0 X X 370300 221613 0 Deborah Olszewski 1.0 X 0 236608 0 Robert Brandfass 1.0 X 0 436568 0 David Kiehn 1.0 X 0 543218 0 George Magovern MD 40.0 X 613777 0 0 Donald McNary 40.0 X 166579 0 0 Susan Manzi MD 40.0 X 486014 0 0 Jack Wilberger MD 40.0 X 949739 0 0 Patrick Demeo MD 40.0 X 1039523 0 0 Mark Barnhart 40.0 X 0 362508 0 Barbara Mercadante 40.0 X 207972 0 0 Charles Rakaczky 40.0 X 171694 0 0 Christopher Schmidt MD 40.0 X 1089244 0 0 Hae Dong Jho MD 40.0 X 1265138 0 0 Donald Whiting MD 40.0 X 1093811 0 0 Nicolas Sotereanos MD 40.0 X 1015792 0 0 Mark Baratz MD 40.0 X 1168464 0 0 Sanford Kurtz MD X 0 682475 0 Dawn Gideon X 0 520867 0 Christopher Olivia MD X 0 4107961 0 Thomas Albanesi X 0 317580 0 Judy Hlafcsak X 0 258918 0 9638047 9577814 0 569 true true false Pricewaterhouse Coopers LLP PO Box 7247-8001 PHILADELPHIA PA 171708001 CONSULTING SERVICE 2303935 HEALTH ASSOCIATION OF WESTERN PA PC 680 ANDERSON ROAD PITTSBURGH PA 15220 PHYSICIAN SERVICES 797500 TOMAYKO GROUP LLC 2403 SIDNEY STREET PITTSBURGH PA 152035119 EQUIPMENT RENTAL 689274 ALVAREZ AND MARSAL 600 LEXINGTON AVENUE NEW YORK NY 10022 CONSULTING SERVICE 437571 BETTER TRANSCRIPTION OPTIONS INC 502 HUNTER DRIVE PITTSBURGH PA 15237 Transcription Serv. 327914 15 0 PATIENT SERVICE REVENUE 621110 202144491 202144491 202144491 5219 5219 0 0 249105 249105 249105 249105 4907 -4907 -4907 -4907 0 0 0 ADMIN/STIPEND/TEACHING - AFFILIATE REIMBURSEMENT 621110 17531437 17531437 STIPENDS 621110 671705 671705 WHEELING HOSPITAL SERVICES 621110 198000 198000 2522196 2522196 20923338 223317246 223067829 249417 4075 4075 0 0 0 4228020 4143460 84560 0 235910070 231191870 4718200 0 8319544 8082205 237339 8661431 8488202 173229 10486338 10191672 294666 1257500 1257500 9389 9389 0 0 0 0 15124311 9367998 5756313 76204 76204 845402 785932 59470 0 0 10331789 9792129 539660 1138705 1103593 35112 0 516741 500254 16487 638 638 2745908 1043445 1702463 3231599 3210487 21112 6713802 6673495 40307 BAD DEBT 11121957 11121957 PATIENT CARE COSTS 4703313 4703313 ORGANIZATIONAL RESTRUCTURING 3905777 3574567 331210 PATIENT CARE SUPPLIES 1321199 1321199 4269278 3907243 362035 334922990 319293327 15629663 0 4298 5788 1767740 780935 0 0 14427020 16554641 0 0 0 0 21333 0 81700 37150 1523004 2104429 23946581 12956111 9287526 10990470 0 0 0 0 0 0 0 0 524577 208931 27637198 30682344 24244538 27643438 0 0 2299330 2075823 0 0 0 0 0 0 0 0 0 0 39606684 60256356 66150552 89975617 X -38514402 -59294321 1048 1048 0 0 -38513354 -59293273 27637198 30682344 X -111605744 90825825 X false true true X false X X 0 0 31458 225684 31458 225684 334891532 1698163316 334922990 1698389000 1000000 1000000 250000 250000 1000000 1000000 1000000 1000000 4000000 6000000 585102 418483 424588 225684 1653857 250000 250000 250000 250000 1000000 1500000 0 0 0 0 0 Lobbying Expenditures Form 990, Schedule C, Page 2, Part II-A, Line 1b, Column (a) Allegheny Specialty Practice Network (ASPN) has made the IRC Section 501(h) election. ASPN is a member of the West Penn Allegheny Health System (WPAHS). The System employs an Executive Vice President for External Affairs to lobby issues of importance to WPAHS and all of its members. WPAHS also elected to engage the services of outside consultants to assist us in lobbying issues of importance. The lobbying expenditures of $31,458 attributed to ASPN on Schedule C, Page 2, Part II-A reflect expenditures allocated to ASPN from WPAHS and do not reflect direct expenditures made by ASPN. 1048 1048 1048 1048 1048 1048 1297 249 1048 1.00000 false false 522984 519885 3099 3644207 1357963 2286244 19763173 11078264 8684909 16218 16218 10990470 0 ACCRUED PENSION LIABILITY 56468248 INSURANCE LIABILITY 2319236 LEASE ESCALATION LIABILITY 1417190 DUE TO AFFILIATED ORGANIZATIONS 51682 60256356 ASPN Inclusion in the Consolidated Audit of WPAHS Form 990, Schedule D, Part X Question 2, Part XII and XIII Allegheny Specialty Practice Network (ASPN) does not issue independent audited financial statements. ASPN is a member of a regional healthcare system named West Penn Allegheny Health System. The West Penn Allegheny Health System receives a consolidated audit which includes the operations of ASPN. The following analysis represents the reconciliation between the financial statement net loss and the net loss as reported on Form 990, Page 1, Line 19: Net Loss Per Financial Statements $(111,793,402) Plus: Unrealized Loss on Limited Liability Company Investment Reclassified Through Net Assets 187,658 _____________ Net Loss Per IRS Form 990 $(111,605,744) The following is the footnote to the audited consolidated financial statements of the West Penn Allegheny Health System for FASB ASC 740: WPAHS adopted Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. FASB ASC 740 prescribes a more-likely than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken. Under FASB ASC 740, tax positions will be evaluated for recognition, derecognition, and measurement using consistent criteria and will provide more information about the uncertainty in income tax assets and liabilities. Based on an analysis prepared by WPAHS, it was determined that the application of FASB ASC 740 had no material effect on the recorded assets and liabilities of WPAHS. Intended Use of the Organization Endowment Funds Schedule D, Page 2, Part V, Line 4 The intended use of Allegheny Specialty Practice Network term endowments are for but not exclusive to: capital improvements, research, education, departmental needs, operating efficiencies, and overall patient care. X X X X true false false false false false false false false Sanford Kurtz MD 0 329283 0 0 0 353192 0 349468 0 9468 0 1041411 0 334768 Dawn Gideon 0 0 0 0 0 520867 0 0 0 0 0 520867 0 520867 Roy Santarella 0 605727 0 171437 0 194726 0 1301114 0 11650 0 2284654 0 117174 Matthew Peterson 0 165051 0 12862 0 57 0 7748 0 5141 0 190859 0 0 Christopher Olivia MD 0 677905 0 2500000 0 930056 0 1884800 0 10553 0 6003314 0 3507618 Thomas Albanesi 0 50974 0 0 0 266606 0 43578 0 6445 0 367603 0 239282 Judy Hlafcsak 0 0 0 0 0 258918 0 17210 0 240 0 276368 0 258918 Deborah Olszewski 0 176869 0 58723 0 1016 0 14195 0 1658 0 252461 0 0 Robert Brandfass 0 364311 0 60764 0 11493 0 9800 0 19628 0 465996 0 0 Diane Dismukes 0 413921 0 100000 0 225717 0 833367 0 10967 0 1583972 0 0 George Magovern MD 612745 0 0 0 1032 0 12250 0 12120 0 638147 0 0 0 Donald McNary 166367 0 0 0 212 0 6889 0 8804 0 182272 0 0 0 Susan Manzi MD 421712 0 63750 0 552 0 9800 0 11065 0 506879 0 0 0 Jack Wilberger MD 819167 0 110000 0 20572 0 78631 0 10498 0 1038868 0 0 0 Tony Farah MD 367162 219735 0 0 3138 1878 6137 3663 7867 4703 384304 229979 0 0 Patrick Demeo MD 863971 0 175000 0 552 0 10819 0 10920 0 1061262 0 0 0 Mark Barnhart 0 207327 0 19619 0 135562 0 209230 0 7482 0 579220 0 0 Barbara Mercadante 182984 0 24600 0 388 0 10740 0 9532 0 228244 0 0 0 Christopher Schmidt MD 871752 0 217132 0 360 0 9800 0 12006 0 1111050 0 0 0 Hae Dong Jho MD 994939 0 268615 0 1584 0 14700 0 11814 0 1291652 0 0 0 Donald Whiting MD 792735 0 300524 0 552 0 9800 0 12120 0 1115731 0 0 0 Nicolas Sotereanos MD 862579 0 152661 0 552 0 10918 0 12312 0 1039022 0 0 0 Mark Baratz MD 867912 0 300000 0 552 0 10785 0 5758 0 1185007 0 0 0 David Kiehn 0 451544 0 90090 0 1584 0 579119 0 12145 0 1134482 0 0 Charles Rakaczky 168809 0 2545 0 340 0 7116 0 9234 0 188044 0 0 0 Additional Compensation Disclosure Form 990, Schedule J, Page 1 The following represents additional disclosure for Schedule J, line 4a pertaining to officers and key employees listed in Form 990, Part VII, Section A, Line 1a receiving severance pay during the calendar year ending within the June 30, 2012 fiscal year end: Judy Hlafcsak $259,157 Dawn Gideon $520,867 Christopher Olivia, MD $625,000 Diane Dismukes $166,673 Roy Santarella $117,174 Sanford Kurtz, MD $334,768 Mark Barnhart $125,538 Thomas Albanesi $228,782 The following list represents Officers, Directors or Key Employees of Allegheny Specialty Practice Network listed on Form 990, Part VII who did not serve a full consecutive twelve month tenure during the year ended June 30, 2012 along with the dates served: Mark Barnhart 07-01-2011 - 08-12-2011 Diane Dismukes 07-01-2011 - 10-31-2011 Roy Santarella 07-01-2011 - 11-01-2011 David Kiehn 07-01-2011 - 12-30-2011 Deborah Olszewski 01-31-2012 - 06-30-2012 Matthew Peterson 01-31-2012 - 06-30-2012 Deferred Compensation Schedule J, Page 2, Column C Retirement and other deferred compensation reflect amounts accrued to the benefit of the applicable individuals related to qualified pension and severance plans. In this regard, the following individuals have amounts accrued related to future severance payments to be made: Christopher Olivia, MD Roy Santarella Judy Hlafcsak Thomas Albanesi Sanford Kurtz, MD Diane Dismukes Mark Barnhart David Kiehn Subsequent Event - Corporate Affiliation Form 990 - General Information West Penn Allegheny Health System, Inc., the sole member of Allegheny Specialty Practice Network has consummated a formal affiliation on April 29, 2013 to establish a regional integrated health care services delivery system. The details of the affiliation are documented in the footnotes to the Audited Financial Statements attached to the IRS Form 990 of West Penn Allegheny Health System, Inc., EIN: 25-0969492. Please refer to the Audited Financial Statements for additional details. Allegheny Specialty Practice Network - Board of Director Independence Form 990, Page 1, Part I, Line 4 The appointment of the Allegheny Specialty Practice Network Board of Directors is made by the sole member of the organization, West Penn Allegheny Health System, Inc. The Bylaws of Allegheny Specialty Practice Network provide that the sole member has the exclusive power to fix the number of, and elect, appoint, fill vacancies in and remove, with or without cause, the Directors; and elect and remove, with or without cause, the Chair and Vice Chair of the Board of Directors of the Corporation, and the Secretary and Treasurer of the Corporation. The Board of Directors of the sole member of Allegheny Specialty Practice Network is comprised of a majority of independent Board Members. The Board of Directors of Allegheny Specialty Practice Network consists of two members who have voting rights on matters pertinent to the organization. Of these two members, none are deemed to be independent to the organization. Because of the independence of the Board of Directors of the sole member, and the rights and powers of the sole member to appoint and fix the Board of Directors of Allegheny Specialty Practice Network, we deem that the Board of Directors of Allegheny Specialty Practice Network is in fact controlled by a majority of independent Board Members. Statement of Program Service Accomplishments - Continued Form 990, Page 2, Part III, Question 4 INTRODUCTION TO ALLEGHENY SPECIALTY PRACTICE NETWORK (ASPN) ASPN is part of the West Penn Allegheny Health System (WPAHS). Organized in 2000, WPAHS (www.wpahs.org) is comprised of West Penn Allegheny Health System, Inc. (WPAHS, Inc.), Alle-Kiski Medical Center (AKMC), Canonsburg General Hospital (CGH), Allegheny Medical Practice Network (AMPN), Allegheny-Singer Research Institute (ASRI), West Penn Physician Practice Network (WPPPN), West Penn Allegheny Oncology Network (WPAON), Canonsburg General Hospital Ambulance Service, Inc. (CGH Ambulance), Alle-Kiski Medical Center Trust (AKMC Trust), Forbes Health Foundation (FHF), Suburban Health Foundation and The Western Pennsylvania Hospital Foundation (WPHF). ASPN is a Pennsylvania non-profit and non-stock corporation that was formed on June 16, 1999 to provide clinical instruction and teaching services. Consisting primarily of physician specialists, ASPN is the sister organization to the primary care network of AMPN, which in combination, function as the faculty practice plan for WPAHS. ASPN employs full time specialty physicians who teach and provide clinical instruction to third and fourth year medical students from Drexel University College of Medicine. This instruction is provided at the hospitals operated by WPAHS, Inc., AKMC, and CGH. The charitable missions (including clinical and educational activities) of the WPAHS hospitals are carried out via the faculty and staff of ASPN. In keeping with its tradition of innovation and research, the Allegheny General Hospital (AGH) campus of WPAHS, Inc. is an affiliate site for the Philadelphia-based Drexel University College of Medicine, and is currently conducting studies in the neurosciences, human oncology, human genetics, cardiovascular and pulmonary disease, allergy and asthma, orthopaedics and trauma. AGH is also host to the headquarters of the National Surgical Adjuvant Breast and Bowel Project, the nation's largest breast cancer study, which is sponsored by the National Cancer Institute. This research activity is all conducted by ASPN physicians. ASPN consists of over 434 specialty and primary care physicians in the western Pennsylvania community, specializing in anesthesiology, cardiology, emergency medicine, neurosurgery, trauma, orthopaedics, neurology, pediatrics, obstetrics/gynecology, and general and specialty surgery at mulitple practice sites throughout the System's service area. In addition, ASPN physician-employees teach medical students, residents, interns and fellows serving at WPAHS, Inc. Instruction is both classroom-based and clinical-based. Clinical instruction refers to teaching medical knowledge, skills and procedures in the course of rendering medical care to patients. It includes performance of medical services by the physician-employees in the presence of medical students, interns, residents and fellows, and patient care by interns, residents and fellows under the supervision of the physician-employees. MISSION, VISION & VALUES Allegheny Specialty Practice Network is an organization defined by our talented people. We are an organization committed to excellence; an organization with one purpose and one mission. Our purpose is to improve the health of the people in the Western Pennsylvania region. Our mission is to practice medicine, educate and conduct research as an integrated team of physicians, nurses and support professionals who are committed to improving the health of our patients. UNCOMPENSATED CARE To enhance the health status of the community in which it operates and consistent with its tax-exempt status, ASPN provides needed health care services to individuals regardless of their ability to pay for all or part of the services rendered. These services include both inpatient and outpatient services as well as access to an emergency room that is available 24 hours a day. The components of uncompensated care include charity care and unreimbursed costs of Medicaid. ASPN provided uncompensated care at a cost of $23,192,809 in Fiscal 2012. COMMUNITY ASSESSMENT Community Health Improvement Services and Community Benefit Operations include activities intended to improve community health. They extend beyond patient care activities and are subsidized by AMPN. The programs ranged from community health education to free clinics and screenings. AMPN provided the following community health improvement services and community benefit operations during Fiscal 2012 at an estimated cost of $71,629. Community Health Fairs - During the year, ASPN participated in various community health fairs. At these fairs, educational information is presented and ASPN physicians are present to address questions about health issues. Media Appearances - During the year, ASPN participated in various appearances on radio and television programs providing answers to a number of questions from the audience. Volunteering time to free clinics - During the year, ASPN participated in free clinics and food pantries throughout the area such as the North Side Christian Health Center and the Gluten Free Food Pantry. Health Professions Education - ASPN provides health professionals with educational opportunities to advance their careers in healthcare. ASPN provided the following health professions education during Fiscal 2012 at an estimated cost of $4,684,475. Residents, Interns and Fellowship Training - ASPN's physician-employees teach medical students, residents, interns and fellows serving at WPAHS, Inc. facilities. Instruction is both classroom-based and clinical-based. Clinical instruction refers to teaching medical knowledge, skills and procedures in the course of rendering medical care to patients. It includes performance of medical services by the physician-employees in the presence of medical students, interns, residents and fellows, and patient care by interns, residents and fellows under the supervision of the physician-employees. Financial Contributions - ASPN supports the community through cash contributions made at the discretion of ASPN and its directors, benefiting not only the non-profit recipient but ultimately the community as a whole. ASPN made cash contributions totaling $4,075 including the following: Alle-Kiski Medical Center Trust Lower Burrell Volunteer Fire Co Allegheny Heart Institute Pirates Charities Community-Building Activities - Community building activities include activities engaged in for the purpose of improving or protecting the health, future and wellbeing of the community. ASPN participated in the following community building activities during the fiscal year at an estimated cost of $37,696 Retreat for Breast Cancer Survivors - An ASPN physician participated in a retreat for Breast Cancer Survivors. The retreat is for women who have survived cancer. It may be that they are looking for an opportunity to be alone, to get away from their routines, their families, their responsibilities. The ASPN physician was available to participants throughout the retreat. Board and Committee Membership - Several ASPN physicians sit on community advisory boards and councils. The boards and counsels include various foundations and medical advisory boards. Operational Oversight By A Third Party Management Company Form 990, Page 6, Part VI, Section A, Question 3 Allegheny Specialty Practice Network (ASPN) is a member of the West Penn Allegheny Health System (System). The System consists of thirteen operational IRC Section 501(c)(3) organizations. The parent organization for ASPN and the other eleven operational IRC Section 501(c)(3) organizations is West Penn Allegheny Health System, Inc. (WPAHS, Inc.). The board of directors of WPAHS, Inc. is comprised of a majority of independent members. Effective September 1, 2011, the board of directors of WPAHS, Inc. engaged Alvarez & Marsal Healthcare Industry Group, LLC (A&M); a healthcare advisory group with extensive expertise in operational and financial turnarounds as well as performance improvement. The engagement assigned an interim Chief Operating Officer and interim Chief Financial Officer under the employment of A&M to oversee the daily operational and financial decisions of ASPN. Effective November 7, 2011 (Effective Date), the board of directors of WPAHS, Inc. further engaged A&M to assign an Interim Chief Executive Officer of the System, Interim Chief Operating Officer of the System and Interim Chief Financial Officer of the System. All individuals appointed to their respective positions are under the employment of A&M and have daily oversight of all matters pertinent to the operation of the System as a whole and all organizations on an independent basis. All interim management personnel under the employment of A&M are responsible to and report to the WPAHS, Inc. board of directors. The term of the engagement is to last one year from the effective date with the option to renew the engagement beyond the initial one year term. During the course of the engagement, the WPAHS, Inc. board of directors upon written notice may cause any individual employed by A&M to be removed from their respective position and replaced by another similarly qualified individual. As of the date of the filing of this tax return, A&M continues to provide management oversight to ASPN and the System under the supervision of the WPAHS, Inc. board of directors. Form 990 Review Process Form 990, Page 6, Part VI, Section B, Question 11a Form 990 is prepared internally by an employee of the West Penn Allegheny Health System, Inc. (Health System) Tax Department who is a certified public accountant. The document is then reviewed internally by top management officials of the Health System. A detailed external review is conducted by Health System external tax advisors, who sign the return as preparer. Members of the Audit and Compliance committee of the Health System Board review the Form 990 and recommend changes or accept the document as presented. A copy of the Form 990 is made available to every board member for review prior to filing the document with the Internal Revenue Service. Monitoring and Enforcement of the Conflict of Interest Policy Form 990, Page 6, Part VI, Section B, Question 12c Allegheny Specialty Practice Network is a member of the West Penn Allegheny Health System (WPAHS). WPAHS has a corporate compliance department that monitors and oversees compliance with the conflict of interest policy of all organizations in the health system. The following describes the manner in which the corporate compliance department monitors and oversees compliance with the conflict of interest policy for Allegheny Specialty Practice Network as well as the other WPAHS affiliates: Conflict of Interest disclosure forms are completed on an annual basis by all board members, officers, employees who have a title of Manager and above, physicians in leadership roles, Pharmacy and Therapeutic Committee members, all employees of the System's Compliance and Internal Audit Department as well as personnel involved with contracting in the Corporate Purchasing Department. Upon completion of the above disclosure statement by all applicable individuals, a report is generated listing all individuals that have reported a conflict. The System Compliance Officer and General Counsel review the conflicts disclosed. Those that require additional information or clarification receive a letter from the Compliance Officer requesting such. Once received, all additional information is added to the report and again reviewed by the Compliance Officer and General Counsel. Those conflicts that require a mitigation plan are sent to the respective organization's senior management for development of the mitigation plan. The organization's senior management is responsible to discuss the mitigation plan with the individual as needed and monitor compliance with the mitigation plan. Once mitigation is received, a final report is reviewed with the System Executive Compliance Council and finally the Audit & Compliance Committee of the Board. Process Used To Determine Executive Compensation Form 990, Page 6, Part VI, Section B, Line 15b The West Penn Allegheny Health Systems (WPAHS) process for determining compensation for executive positions (including officers, key employees and other management positions) within Allegheny Specialty Practice Network is covered by the WPAHS Executive Compensation Policy. This policy was approved by the West Penn Allegheny Health System, Inc. Board of Directors. It is the policy of WPAHS and its Board of Directors to compensate its executives in accordance with the market and in relation to the experience, service and accomplishments of the individual both prior to and during their service with WPAHS. The Compensation Committee of the West Penn Allegheny Health System, Inc. Board of Directors approves the compensation for WPAHS senior executives. The Compensation Committee approves the initial compensation for newly hired senior executives, which shall include all compensation components, including without limitation, base compensation, incentive compensation, deferred compensation, fringe and other benefits, as well as the total compensation. It shall also approve all base compensation adjustments and all incentive compensation awards, as well as material changes to deferred compensation, fringe, or other benefits. The Compensation Committee uses comparability data provided by the System Human Resources Department, which may include industry surveys, expert compensation studies, documented compensation of persons holding similar positions, or other comparable data in approving any executive compensation. The Compensation Committee shall periodically retain the services of an independent compensation consultant to provide an expert opinion report as to the reasonableness of total compensation of Allegheny Specialty Practice Network officers and key employees. Each Compensation Committee member voting on a senior executive's compensation arrangement ensures that he or she has no conflict of interest, including that he or she (a) does not economically benefit from the proposed employment; (b) does not receive compensation subject to the approval of the proposed employee; and (c) has no material financial interest affected by the transaction. The Compensation Committee consists of five independent Board Members of West Penn Allegheny Health System, Inc. All decisions of the Compensation Committee regarding executive compensation matters are documented. Public Availability of Organizational Documents Form 990, Page 6, Part VI, Section C, Line 19 Allegheny Specialty Practice Network (ASPN) does not make its governing documents available to the public. ASPN is a member of the West Penn Allegheny Health System (WPAHS). The WPAHS makes available their annual and quarterly financial statements through the use of a dissemination agent. These financial statements are on a consolidated basis with ASPN being one of the consolidated entities. In addition, the WPAHS annual report and quarterly financial results are available on the WPAHS website. WPAHS has adopted a conflict of interest policy that is uniformly applied to all organizations of the health system, including ASPN. A condensed version of this conflict of interest policy is available on the WPAHS website. Officer, Director and Key Employee Hour Allocation Form 990, Page 7, Part VII, Section A, Column B Allegheny Specialty Practice Network (ASPN) is part of an integrated healthcare delivery system named West Penn Allegheny Health System. Individuals employed by one organization may be assigned to provide management for an affiliated organization. As such, many individuals play key roles or serve as officers or directors on multiple affiliated organizations. Each individual will be assigned forty hours to the organization of their actual employment. If the individual is employed by one organization and appointed as an officer, director or key employee of affiliated organizations the hour allocation on Form 990, Part VII, Page 7, Column (B) takes various factors into account when attempting to assign hours in a reasonable manner. Thus, it is possible for a single individual to have hours assigned in excess of forty hours per week if all affiliated organization IRS Forms 990 is taken into account. The actual time served for all individuals disclosed in IRS Form 990 can vary based upon the need of the organization. Rental Expense Form 990, Page 9, Part VIII, Line 6b Allegheny Specialty Practice Network does not account for rental expenses in a manner that would allow us to reflect the expense as a direct offset to rental income. The components of rental expense are reflected on Form 990, Page 10, Statement of Functional Expenses. Health System Tax Exempt Bond Issuance Form 990, Page 10, Part X, Line 20 Allegheny Specialty Practice Network is a member of the West Penn Allegheny Health System obligated group in regards to 2007 Allegheny County Hospital Development Authority tax-exempt bonds. The purpose of the issue of the Allegheny County Hospital Development Authority (ACHDA) Hospital Revenue Bonds, Series 2007 A is to refund the outstanding ACHDA Series 2000A and B Bond Issues, refund the Dauphin County General Authority (DCGA) Series 1992A and B Hospital Bonds, the Pennsylvania Higher Education Facility Authority (PHEFA) Series 1991A Revenue Bonds, the Monroeville Hospital Authority (MHA) Series 1992 and 1995 Revenue Bonds, the funding of a project fund for certain prior and future capital expenditures and to pay the cost of issuing Series 2007A Debt. No internal allocation of debt has been made to Allegheny Specialty Practice Network, however, the organization's assets are security for purposes of this bond issue. Other Changes In Net Assets Form 990, Page 12, Part XI, Line 5 The following represents a reconciliation of the other changes in net assets of Allegheny Specialty Practice Network for the year ended June 30, 2012: Net Transfers From Affiliated Organizations $108,149,262 Change in Minimum Pension Liability (17,135,779) Unrealized Loss Reclassification to Equity (187,658) ____________ Other Changes In Net Assets $ 90,825,825 Allegheny Specialty Practice Network - Schedule H Filing Requirements Schedule A, Part I, Line 3 Internal Revenue Service Form 990, Schedule H is required to be completed by all organizations that meet the IRS definition of a Hospital and in addition, is required to be licensed, registered or similarly recognized by a state as a Hospital. Allegheny Specialty Practice Network is classified by the Internal Revenue Service as a Hospital under IRC section 170(b)(1)(A)(iii). Allegheny Specialty Practice Network is not required to be licensed, registered or similarly recognized as a Hospital by the State of Pennsylvania. Accordingly, Internal Revenue Service Form 990, Schedule H is not completed by Allegheny Specialty Practice Network. West Penn Allegheny Health System Inc 4800 Friendship Avenue Pittsburgh PA 15224 250969492 Healthcare PA 501(c)(3) 3 NA false Allegheny Singer Research Institute 320 East North Avenue Pittsburgh PA 15212 251320493 Sci Research PA 501(c)(3) 4 NA false Canonsburg General Hospital 100 Medical Boulevard Canonsburg PA 15317 251737079 Healthcare PA 501(c)(3) 3 NA false Allegheny Medical Practice Network 4800 Friendship Avenue Pittsburgh PA 15224 251838457 Healthcare PA 501(c)(3) 3 NA false Alle-Kiski Medical Center 1301 Carlisle Street Natrona Heights PA 15065 251875178 Healthcare PA 501(c)(3) 3 NA false West Penn Allegheny Oncology Network 4800 Friendship Avenue Pittsburgh PA 15224 113683376 Healthcare PA 501(c)(3) 11-III FL NA false West Penn Physician Practice Network 4800 Friendship Avenue Pittsburgh PA 15224 251494317 Healthcare PA 501(c)(3) 9 NA false CGH Ambulance Service Inc 100 Medical Boulevard Canonsburg PA 15317 232939715 Emer Response PA 501(c)(3) 9 NA false Alle-Kiski Medical Center Trust 1301 Carlisle Street Natrona Heights PA 15065 205855753 Fundraising PA 501(c)(3) 11-I NA false Forbes Health Foundation 2570 Haymaker Road Monroeville PA 15146 251798379 Fundraising PA 501(c)(3) 7 NA false Suburban Health Foundation 100 South Jackson Avenue Pittsburgh PA 15202 251472073 Fundraising PA 501(c)(3) 11-I NA false Western Pennsylvania Hospital Foundation 4800 Friendship Avenue Pittsburgh PA 15224 251470766 Fundraising PA 501(c)(3) 11 - I NA false West Allegheny Hospital 100 Medical Boulevard Canonsburg PA 15317 251054206 Inactive PA 501(c)(3) 3 NA false Greater Canonsburg Health System 100 Medical Boulevard Canonsburg PA 15317 251488089 Inactive PA 501(c)(3) 11-I NA false Canonsburg HealthHospital Foundation 100 Medical Boulevard Canonsburg PA 15317 251818505 Inactive PA 501(c)(3) 11-I NA false Burn Care Associates 4800 Friendship Avenue Pittsburgh PA 15224 232899534 Healthcare PA NA C Corporation 0 0 0.00000 Medical Center Clinic 4800 Friendship Avenue Pittsburgh PA 15224 232894939 Healthcare PA NA C Corporation 0 0 0.00000 West Penn Corporate Medical Services Inc 4800 Friendship Avenue Pittsburgh PA 15224 251437405 Healthcare PA NA C Corporation 0 0 0.00000 West Penn Neurosurgery 4800 Friendship Avenue Pittsburgh PA 15224 251630719 Inactive PA NA C Corporation 0 0 0.00000 Friendship Insurance Company Barclays House Shedden Rd Grand Cayman Cayman Islands CJ PO Box 1051 980116952 Insurance CJ NA C Corporation 0 0 0.00000 false true true false false false false false false false false false false false true true false false Transactions with Affiliated Organizations Schedule R, Part V, Line 2 Allegheny Specialty Practice Network has chosen not to complete Schedule R, Part V, line 2. The disclosure of this information is only required for organizations listed in Schedule R, Part V, line 2 that are controlled entities within the meaning of section 512(b)(13). No organization listed in Schedule R, Part V, line 2 is a controlled entity within the meaning of section 512(b)(13) for Allegheny Specialty Practice Network.