2012-05-04T13:45:33-05:00 2011-06-30 BKD LLP 910 E ST LOUIS 200/PO BOX 1190 SPRINGFIELD MO 658062523 990 2010-07-01 251010039 CLARION HOSPITAL CLAR 8142269500 ONE HOSPITAL DRIVE CLARION PA 16214 VINCENT LAMORELLA 2012-04-11 true Brian D Todd 4178658701 2010 2016-02-24 21:20:13Z VINCENT LAMORELLA ONE HOSPITAL DRIVE CLARION PA 16214 53728102 false X WWW.CLARIONHOSPITAL.ORG X 1951 PA CLARION HOSPITAL IS THE COMMUNITY'S DYNAMIC RESOURCE FOR QUALITY HEALTHCARE, CONTINUOUS EDUCATION AND THE PROMOTION OF WELLNESS. 9 5 542 71 0 0 400334 170990 46379801 51549172 509636 709905 -205561 287134 47084210 52717201 0 0 0 0 21730607 22905542 0 0 0 24159311 27938746 45889918 50844288 1194292 1872913 38510675 39473461 15118239 15105410 23392436 24368051 X PROVIDE EMERGENT, ACUTE, TRANSITIONAL, AND LONG-TERM MEDICAL SERVICES FOR THE RESIDENTS OF CLARION COUNTY AND ITS SURROUNDING COMMUNITIES. FOR ADDITIONAL INFORMATION, SEE SCHEDULE O. false false 29072911 36079265 CLARION HOSPITAL PROVIDED SERVICES TO 127,403 OUTPATIENTS AS WELL AS 18,389 EMERGENCY ROOM VISITS. SERVICES INCLUDE, BUT ARE NOT LIMITED TO, RADIOLOGY SERVICES WHICH INCLUDE MRI, ULTRASOUND, CT, NUCLEAR MEDICINE AND X-RAY SERVICES, LABORATORY SERVICES, EKG AND PHYSICAL THERAPY SERVICES. THE ORGANIZATION ALSO OFFERS SAME-DAY SURGERY, GENETIC COUNSELING, DRUG AND ALCOHOL TESTING, AND OUTPATIENT PHYSICAL THERAPY AND REHABILITATION SERVICES. 12457445 15459597 CLARION HOSPITAL PROVIDED SERVICES TO 2,564 INPATIENTS FOR MEDICAL AND SURGICAL SERVICES AS WELL AS INTENSIVE CARE SERVICES. CLARION HOSPITAL ALSO PROVIDED OBSTETRIC CARE FOR 249 NEW MOTHERS AND BABIES. THE ORGANIZATION ALSO OFFERS AN INPATIENT REHABILITATION CENTER WHERE PATIENTS WHO HAVE SUFFERED MAJOR INJURIES OR TRAUMA CAN HAVE 24-HOUR NURSING CARE, ALONGSIDE INTENSIVE PHYSICAL, OCCUPATIONAL, AND/OR SPEECH THERAPY. 8308 10310 CLARION HOSPITAL PROVIDED 22 EDUCATION AND SCREENING OPPORTUNITIES FOR THE COMMUNITY ATTENDED BY 1,372 MEMBERS OF THE COMMUNITY. CLASSES ARE AVAILABLE FOR EXPECTANT MOTHERS, PEOPLE WITH DIABETES, AND WORKERS LOOKING FOR SAFER ENVIRONMENTS. THE ORGANIZATION ALSO OFFERS CPR AND EMT TRAINING COURSES. 41538664 true true false true false false false false false true true false false true false true false false false false false false false false false true true false false true false false false false false false true false false false false false false true false false false false true 48 0 true 542 true false false false false false false false false false false X 9 5 false true false false true true true true true false false true true true true true true false false false PA X VINCENT LAMORELLA 8142269500 ONE HOSPITAL DRIVE CLARION PA 16214 X VICTOR EWY 1.0 X X 0 0 0 MICHAEL CHERICO 10.0 X X 0 0 0 BARRY GEORGE 1.0 X X 0 0 0 THOMAS FREENOCK 1.0 X 0 415177 2450 CASSANDRA NEELY 1.0 X 0 0 0 RODNEY SILVIS 1.0 X X 0 0 0 DONNA HARTLE 1.0 X 0 0 0 BRUCE MCCLEARY 1.0 X 0 0 0 CATHERINE CUNNINGHAM 1.0 X 0 201427 17756 VINCENT LAMORELLA 40.0 X 0 0 0 BYRON QUINTON 40.0 X 0 0 0 CHARLES BARTLEY 40.0 X 154487 0 23110 HENRY HORNING 40.0 X 140930 0 22413 CLARA MICKLISH 40.0 X 137937 0 12798 TOM MORGO 40.0 X 147568 0 25106 WENDY STIVANSON 40.0 X 135663 0 24511 716585 616604 128144 8 false true false CLARION REHABILITATION SERVICES PHYSICAL THERAPY 2225199 DJD ANESTHESIA ASSOCIATES MEDICAL 300993 DR CHONG PARK PHYSICIAN 143000 BKD LLP AUDIT, CONSULTING 133171 QUORUM HEALTH RESOURCES MANAGEMENT GROUP 710187 5 168129 2861 170990 PATIENT REVENUE 900099 50913274 50913274 AMBULANCE 621910 183227 183227 EDUCATION 900099 16071 16071 CAFETERIA 722210 284340 284340 DAYCARE 624410 131923 131923 20337 20337 51549172 304379 304379 0 0 243284 126396 116888 116888 116888 1282130 7901 870374 14131 411756 -6230 405526 405526 0 0 0 GAIN ON EQUITY INVESTEE 900099 170246 170246 170246 52717201 51549172 997039 0 0 0 0 0 92453 92453 17343067 15183590 2159477 720975 627856 93119 3468972 3020928 448044 1280075 1114744 165331 710187 710187 71925 71925 107408 107408 26250 26250 0 63438 63438 6677290 5246004 1431286 253512 712 252800 999366 424159 575207 355793 355793 0 1102716 225268 877448 5759 2601 3158 0 95675 78644 17031 457943 369463 88480 0 2525855 2037831 488024 580608 388517 192091 BAD DEBT 2744715 2744715 LICENSES, DUES & SUBSCRIPTIONS 146570 55254 91316 RECRUITING 682028 682028 MEDICAL SUPPLIES & DRUGS 9173811 9173811 REPAIRS & MAINTENANCE 1027899 844567 183332 129998 129998 50844288 41538664 9305624 0 3147 1393 3764397 4658016 5558941 5576890 52500 0 1050787 1139834 729328 567315 56230633 42941676 13774085 13288957 8597772 9401590 2671946 3003516 2307772 1835950 38510675 39473461 3592868 4932428 0 0 0 0 0 0 0 0 10764316 8959457 0 460991 761055 752534 15118239 15105410 X 23055106 24065106 197169 140298 140161 162647 23392436 24368051 38510675 39473461 X 1872913 -897298 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 45920 45920 false OTHER LOBBYING ACTIVITY SCHEDULE C, PART II-B, LINE 1(I) A PORTION OF DUES PAID IN FY 2011 TO THE AHA, HAP AND HCWP WERE ATTRIBUTABLE TO LOBBYING, TOTALING $19,670. IN ADDITION, STRATEGIC MARKETING INNOVATIONS WAS PAID $26,250 FOR LOBBYING SERVICES. 473420 473420 25482459 17389541 8092918 302349 251379 50970 27922796 23459343 4463453 2049609 1841413 208196 13288957 2088257 C INVST INT IN CHART 915259 C 3003516 0 OTHER LIABILITIES 752534 752534 52717201 50844288 1872913 891573 -1788871 -897298 975615 51946299 891573 -1788871 -897298 52843597 -126396 -126396 52717201 50970684 126396 126396 50844288 50844288 UNCERTAIN TAX POSITIONS 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 RECONCILING CHANGE IN NET ASSETS SCHEDULE D, PART XI, LINE 8 TRANSFER TO AFFILIATES $(2,060,435) CHANGE IN BENEFICIAL INTEREST OF TRUST 22,486 CHANGE IN NET ASSETS OF CLARION HOSPITAL FOUNDATION 249,078 -------------- TOTAL $(1,788,871) OTHER REVENUE INCLUDED ON LINE 1, BUT NOT ON FORM 990, PART VIII, LINE 12 SCHEDULE D, PART XII, LINE 2D TRANSFER TO AFFILIATES $(2,060,435) CHANGE IN BENEFICIAL INTEREST OF TRUST 22,486 CHANGE IN NET ASSETS OF CLARION HOSPITAL FOUNDATION 249,078 -------------- TOTAL $(1,788,871) OTHER REVENUE INCLUDED ON FORM 990, PART VIII, LINE 12, BUT NOT ON LINE 1 SCHEDULE D, PART XII, LINE 4B RENTAL EXPENSES OF $126,396 WERE MOVED TO BE PROPERLY INCLUDED ON THE STATEMENT OF REVENUE ON THE FORM 990. OTHER EXPENSE INCLUDED ON LINE 1, BUT NOT ON FORM 990, PART IX, LINE 25 SCHEDULE D, PART XII, LINE 2D RENTAL EXPENSES OF $126,396 WERE MOVED TO BE PROPERLY INCLUDED ON THE STATEMENT OF REVENUE ON THE FORM 990. true true X true X true X false true true false false 264448 264448 0.00550 6004873 3623059 2381814 0.04940 6269321 3623059 2646262 0.05490 12410 12410 0.00010 934714 758709 176005 0.00360 2622670 1204034 1418636 0.02940 3569794 1962743 1607051 0.03310 9839115 5585802 4253313 0.08800 false 1328725 252458 17950002 15934560 2015442 X true false 1 1 CLARION HOSPITAL

ONE HOSPITAL DRIVE CLARION PA 16214

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1008 S FIFTH AVE CLARION PA 16214

SCREENING MAMMOGRAPHY SERVICES AC VALLEY MEDICAL CENTER

855 ROUTE 58 SUITE 1 PARKER PA 16049

CLINIC SERVICES PERCENT OF TOTAL EXPENSE SCHEDULE H, PART I, LINE 7, COLUMN F TO ARRIVE AT THE PERCENT OF TOTAL EXPENSES, THE DENOMINATOR WHICH EQUALS TOTAL OPERATING EXPENSES PER PART IX, LINE 25 OF THE FORM 990 WAS REDUCED BY BAD DEBT EXPENSE. BAD DEBT EXPENSE SCHEDULE H, PART III, SECTION A, LINE 4 THE AUDITED FINANCIAL STATEMENTS DO NOT CONTAIN A FOOTNOTE THAT DESCRIBES BAD DEBT EXPENSE. THEY DO, HOWEVER, CONTAIN A FOOTNOTE THAT DESCRIBES PATIENT ACCOUNTS RECEIVABLE: THE HOSPITAL REPORTS PATIENT ACCOUNTS RECEIVABLE FOR SERVICES RENDERED AT NET REALIZABLE AMOUNTS FROM THIRD-PARTY PAYERS, PATIENTS AND OTHERS. THE HOSPITAL PROVIDES AN ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS BASED UPON A REVIEW OF OUTSTANDING RECEIVABLES, HISTORICAL COLLECTION INFORMATION AND EXISTING ECONOMIC CONDITIONS. AS A SERVICE TO THE PATIENT, THE HOSPITAL BILLS THIRD-PARTY PAYERS DIRECTLY AND BILLS THE PATIENT WHEN THE PATIENT'S LIABILITY IS DETERMINED. PATIENT ACCOUNTS RECEIVABLE ARE DUE IN FULL WHEN BILLED. ACCOUNTS ARE CONSIDERED DELINQUENT AND SUBSEQUENTLY WRITTEN OFF AS BAD DEBTS BASED ON INDIVIDUAL CREDIT EVALUATION AND SPECIFIC CIRCUMSTANCES OF THE ACCOUNT. THE ORGANIZATION CALCULATED BAD DEBT AT COST BY TAKING THE BAD DEBT ATTRIBUTABLE TO PATIENT ACCOUNTS TIMES THE RATIO OF PATIENT CARE COST TO CHARGES USED FOR SCHEDULE H, PART I CALCULATIONS. BAD DEBT ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S CHARITY CARE POLICY WAS DETERMINED USING POVERTY LIMIT DEMOGRAPHIC INFORMATION OBTAINED THROUGH THE US CENSUS BUREAU. IN 2010, 19% PERCENT OF CLARION COUNTY WAS CONSIDERED TO LIVE IN POVERTY. COMMUNITY BENEFIT SCHEDULE H, PART III, SECTION B, LINE 8 SERVING PATIENTS WITH GOVERNMENT HEALTH BENEFITS, SUCH AS MEDICARE, IS A COMPONENT OF THE COMMUNITY BENEFIT STANDARD THAT TAX-EXEMPT HOSPITALS ARE HELD TO. THIS IMPLIES THAT SERVING MEDICARE PATIENTS IS A COMMUNITY BENEFIT AND THAT THE HOSPITAL OPERATES TO PROMOTE THE HEALTH OF THE COMMUNITY. NEEDS ASSESSMENT: CLARION HOSPITAL IS GOVERNED BY A BOARD OF VOLUNTEER DIRECTORS WHO REPRESENT THE COMMUNITY WE SERVE. THROUGH THEIR INPUT AND OCCASIONAL COMMUNITY SURVEYS, CLARION HOSPITAL ASSESSES THE HEALTH CARE NEEDS OF ITS SERVICE AREA. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE: MEDICAID APPLICATIONS GIVEN TO SELF PAY PATIENTS IN EMERGENCY ROOM AND INPATIENT. HOSPITAL FINANCIAL POLICY AND BUSINESS OFFICE CONTACT INFORMATION ARE AVAILABLE AT REGISTRATION DESKS. FREE CARE GUIDELINES PRINTED ON REVERSE SIDE OF PATIENT STATEMENTS. COMMUNITY INFORMATION: CLARION HOSPITAL SERVES CLARION COUNTY (POPULATION 40,000) AND PARTS OF THE SURROUNDING COUNTIES, INCLUDING VENANGO, FOREST, JEFFERSON, AND ARMSTRONG. OUR SERVICE AREA IS IN A RURAL PART OF WESTERN PENNSYLVANIA, WITH MANY LIVING BELOW OR WELL BELOW THE NATIONAL AND STATE INCOME AVERAGE. COMMUNITY BUILDING ACTIVITIES: A NUMBER OF HEALTH AND WELLNESS CLASSES ARE HELD ON THE CLARION HOSPITAL CAMPUS. SOME EXAMPLES ARE PRENATAL, CRP AND NUTRITION. ADDITIONALLY, THE HOSPITAL SERVES AS A MEETING PLACE FOR MANY HEALTH AND HUMAN SERVICE AGENCIES, LIKE THE AMERICAN CANCER SOCIETY, SUPPORT GROUPS, AND HOSPICE PROGRAMS. OTHER INFORMATION: CLARION HOSPITAL PROVIDES MANY HEALTH FAIRS AND EDUCATIONAL EVENTS WITHIN THE COMMUNITY. LOW-COST BLOOD TESTING IS DONE TWICE A YEAR, AND CANCER PREVENTION EXPOS ARE HELD AT LEAST ANNUALLY. CLARION HOSPITAL PROVIDES SPEAKERS TO LOCAL CIVIC GROUPS AND INVITES THE COMMUNITY TO ITS OWN LUNCH'N LEARN PROGRAMS BIMONTHLY. CLARION HOSPITAL ALSO PARTNERS WITH THE YMCA OF CLARION COUNTY TO PROVIDE COMMUNITY FITNESS PROGRAMS. EACH YEAR THE HOSPITAL REINVESTS BETWEEN $800,000 AND $1 MILLION ON UPGRADING AND NEW MEDICAL EQUIPMENT. AFFILIATED HEALTH CARE SYSTEM ROLES: CLARION HOSPITAL IS AN AFFILIATE OF CLARION HEALTHCARE SYSTEM, INC. CLARION HEALTHCARE SYSTEM, INC EXISTS TO SUPPORT THE HOSPITAL MISSION AND TO PROVIDE A VITAL LINK BETWEEN THE HOSPITAL SYSTEM AND THE SURROUNDING COMMUNITY. THROUGH THE PROCESSES OF STRATEGIC AND FINANCIAL DEVELOPMENT, THE HEALTH SYSTEM WILL ENHANCE THE PUBLIC'S AWARENESS OF HEALTH CARE AND THE HOSPITAL'S SERVICES; SECURE CHARITABLE GIFTS; INCREASE ITS CURRENT PERMANENTLY RESTRICTED FUNDS TO GENERATE A PERMANENT SOURCE OF INVESTMENT INCOME; AND REGULARLY DISTRIBUTE FINANCIAL ASSISTANCE TO THE SURROUNDING COMMUNITY AND THE HOSPITAL TO ENHANCE HEALTH CARE EDUCATION, TECHNICAL RESOURCES AND QUALITY PATIENT CARE. BY THESE ACTIVITIES, THE SYSTEM WILL SERVE TO LEAD THE WAY FOR THE SURROUNDING COMMUNITY'S HEALTH CARE STABILITY AND GROWTH IN THE TWENTY-FIRST CENTURY. false false false false false false false false false THOMAS FREENOCK 0 338522 0 76655 0 0 0 2450 0 0 0 417627 0 0 CATHERINE CUNNINGHAM 0 178015 0 23412 0 0 0 2014 0 15742 0 219183 0 0 CHARLES BARTLEY 154487 0 0 0 0 0 7744 0 15366 0 177597 0 0 0 HENRY HORNING 140930 0 0 0 0 0 7047 0 15366 0 163343 0 0 0 CLARA MICKLISH 137937 0 0 0 0 0 6897 0 5901 0 150735 0 0 0 TOM MORGO 147568 0 0 0 0 0 7378 0 17728 0 172674 0 0 0 WENDY STIVANSON 135663 0 0 0 0 0 6783 0 17728 0 160174 0 0 0 COMPENSATION OF ORGANIZATION'S CEO SCHEDULE J, PART I, LINE 3 CLARION HOSPITAL CONTRACTED WITH QUORUM HEALTH RESOURCES, AN UNRELATED MANAGEMENT COMPANY, FOR THE SERVICES OF BYRON QUINTON, CEO, AND VINCENT LAMORELLA, CFO. AMOUNTS PAID TO QUORUM HEALTH RESOURCES ARE REPORTED IN FORM 990, PART VII, SECTION B, AND ARE FOR SERVICES PROVIDED BY THE INDIVIDUALS AS WELL AS OTHER SERVICES PROVIDED BY THE COMPANY. NO COMPENSATION WAS REPORTED FOR EITHER INDIVIDUAL ON FORM 990, PART VII OR SCHEDULE J, PART II. BONUSES PAID BY RELATED ORGANIZATION SCHEDULE J, PART II, COLUMN B(II) IN ADDITION TO PHYSICIAN'S ANNUAL BASE COMPENSATION, PHYSICIAN MAY BE ENTITLED TO RECEIVE A PRODUCTIVITY BONUS, WHICH SHALL BE BASED ON CASH RECEIPTS EARNED BY THE PHYSICIAN. THESE SHALL BE DEDUCTED FROM CASH RECEIPTS EXPENSES DIRECTLY ASSOCIATED WITH THE PHYSICIAN AS WELL AS A PROPORTIONATE SHARE OF DIRECT EXPENSES FOR THE OPERATION OF THE CLARION INTERNAL MEDICINE PRACTICE. FOR PURPOSES OF CALCULATING THE PHYSICIAN'S SHARE OF DIRECT EXPENSES, THE ONLY EXPENSES WHICH WILL NOT BE DEDUCTED ARE "INDIRECT EXPENSES" ASSOCIATED WITH ADMINISTRATIVE SERVICES PROVIDED BY HEALTH SERVICES OF CLARION, INC. IF THE RESULTING NUMBER IS A POSITIVE NUMBER, IT SHALL BE MULTIPLIED BY 75%. THIS AMOUNT SHALL BE THE AMOUNT OF BONUS EARNED BY THE PHYSICIAN. THE BONUS SHALL BE PAYABLE WITHOUT REGARD TO WHETHER THE SURGICAL PRACTICE HAD BEEN PROFITABLE OR NOT PROFITABLE IN THE PAST. MARLA MCCLEARY SPOUSE OF BRUCE MCCLEARY 69751 COMPENSATION false LANA GEORGE SPOUSE OF BARRY GEORGE 22702 COMPENSATION false NUMBER OF VOLUNTEERS FORM 990, PART I, LINE 6 VOLUNTEER SERVICES OF CLARION HOSPITAL CONSISTS OF APPROXIMATELY 62 VOLUNTEERS WHO WORK WITHIN 25 VARIOUS DEPARTMENTS ASSISTING EMPLOYEES, PATIENTS, AND STAFF TO DELIVER QUALITY BASED HEALTHCARE. IN ADDITION, THE MEMBERS OF THE BOARD OF DIRECTORS WHO SERVED DURING THE YEAR ARE CONSIDERED VOLUNTEERS. ORGANIZATION'S MISSION FORM 990, PART III, LINE 1 MISSION: CLARION HOSPITAL, AS THE COMMUNITY'S RESOURCE FOR THE DELIVERY OF QUALITY-BASED HEALTHCARE, IS COMMITTED TO PROVIDE EMERGENT, ACUTE, TRANSITIONAL, AND LONG-TERM MEDICAL SERVICES FOR THE RESIDENTS OF CLARION COUNTY AND ITS SURROUNDING COMMUNITIES. PURPOSE: CLARION HOSPITAL EXISTS TO PROVIDE COMPREHENSIVE, QUALITY HEALTH CARE, APPROPRIATE TO THE NEEDS OF OUR COMMUNITY, IN A COMPASSIONATE AND EMPATHETIC MANNER. THE HOSPITAL ACKNOWLEDGES THE IMPORTANCE OF PREVENTIVE MEDICINE AND FOCUSES ON THE PROMOTION OF A HEALTHY LIFESTYLE FOR ALL. EVERY DEPARTMENT WITHIN CLARION HOSPITAL CONTRIBUTES AN INVALUABLE SERVICE TOWARD THE PROVISION OF QUALITY HEALTH CARE FROM THE ORGANIZATION AS A WHOLE. EACH DEPARTMENT EXISTS FOR A SPECIFIC PURPOSE, YET NO DEPARTMENT EXISTS SOLELY ON ITS OWN. WE ARE ALL INTER-DEPENDENT UPON EACH OTHER. VALUES: *WE BELIEVE IN BEING CUSTOMER FOCUSED. *WE BELIEVE IN COMPETENCY. *WE BELIEVE IN HONESTY. *WE BELIEVE IN CARING. *WE BELIEVE IN COMMITMENT. *WE BELIEVE IN BEING TEAM PLAYERS. *WE BELIEVE IN DEMONSTRATING PROFESSIONALISM. *WE BELIEVE IN THE PRESERVATION OF DIGNITY FOR THOSE WE SERVE. *WE BELIEVE IN MAINTAINING CONFIDENTIALITY. *WE BELIEVE IN EDUCATION AND CONTINUAL LEARNING. *WE BELIEVE IN CONTINUAL IMPROVEMENT. *WE BELIEVE IN DEMONSTRATING MUTUAL RESPECT FOR OUR CO-WORKERS. VISION: CLARION HOSPITAL ENDEAVORS TO EXCEED THE COMMUNITY'S HEALTHCARE EXPECTATIONS THROUGH THE IMPLEMENTATION OF CONTINUOUS QUALITY IMPROVEMENTS, BY REASSESSING THE COMMUNITY'S EVOLVING NEEDS, BY DEVELOPING INNOVATIVE FAMILY-ORIENTED HEALTHCARE SERVICES, AND BY PROVIDING EDUCATIONAL PROGRAMS FOR OUR FUTURE HEALTHCARE PROVIDERS. MANAGEMENT DUTIES FORM 990, PART VI, SECTION A, LINE 3 CLARION HOSPITAL HAS A MANAGEMENT CONTRACT WITH QUORUM HEALTH RESOURCES TO PROVIDE MANAGEMENT SERVICES. IN ADDITION, QUORUM HEALTH RESOURCES PROVIDES COMPENSATION FOR THE HOSPITAL'S CEO & CFO. THE HOSPITAL REIMBURSES QUORUM HEALTH RESOURCES WITH MONTHLY MANAGEMENT FEES FOR THE COMPENSATION PAID AND OTHER SERVICES PROVIDED. MEMBERS OF THE ORGANIZATION FORM 990, PART VI, SECTION A, LINES 6, 7A, & 7B THE BOARD OF CLARION HOSPITAL SHALL CONSIST OF NINE (9) MEMBERS AND SHALL BE APPOINTED BY THE BOARD OF DIRECTORS OF CLARION HEALTHCARE SYSTEM, INC. IN ACCORDANCE WITH HOSPITAL BYLAWS. THE BOARD MEMBERS SHALL BE THE SAME PERSONS WHO SERVE AS THE EXECUTIVE COMMITTEE OF CLARION HEALTHCARE SYSTEM, INC. WHICH INCLUDE THE CHAIRPERSON, VICE CHAIRPERSON, SECRETARY, TREASURER, FORMER CHAIRPERSON (IF APPLICABLE), PRESIDENT & CEO (NON-VOTING), CHIEF OF STAFF (WITH VOTING RIGHTS), ONE MEDICAL STAFF REPRESENTATIVE, AND ANY OTHER DIRECTORS SELECTED BY THE CHAIRPERSON. BYLAWS MAY ONLY BE AMENDED OR REPEALED AND NEW BYLAWS ADOPTED BY THE BOARD OF DIRECTORS OF CLARION HEALTHCARE SYSTEM, INC. FORM 990 REVIEW FOR 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM BASED ON THE AUDITED FINANCIAL STATEMENTS AND INFORMATION PROVIDED BY THE ACCOUNTING DEPARTMENT OF THE ORGANIZATION. PRIOR TO FILING, A DRAFT OF THE RETURN IS REVIEWED BY THE CFO IN DETAIL. A FINAL DRAFT IS THEN PRESENTED TO THE FINANCE COMMITTEE OF THE BOARD OF DIRECTORS AND THE FULL BOARD FOR REVIEW. CONFLICT OF INTEREST POLICY REVIEW FORM 990, PART VI, SECTION B, LINE 12C CLARION HOSPITAL, INC. BOARD MEMBERS ARE ASKED TO COMPLETE A CONFLICT OF INTEREST FORM ON AN ANNUAL BASIS. IF A CONFLICT ARISES, THE BOARD MEMBER WITH A CONFLICT ABSTAINS FROM VOTING ON ANY MATTER RELATED TO THE CONFLICT. POLICY: MEMBERS OF THE GOVERNING BODY SHALL NOT MAINTAIN SUBSTANTIAL PERSONAL OR BUSINESS INTERESTS WHICH CONFLICT WITH THOSE OF THE HOSPITAL. PROCEDURES: ALL GOVERNING BODY MEMBERS SHALL EXECUTE A CONFLICT OF INTEREST STATEMENT. MEMBERS OF THE GOVERNING BODY SHALL NOT ENGAGE IN THE FOLLOWING FORMS OF SELF DEALINGS: A) THE SALE, EXCHANGE, OR LEASING OF PROPERTY OR SERVICES BETWEEN THE HOSPITAL AND A GOVERNING BOARD MEMBER, HIS EMPLOYER, OR AN ORGANIZATION SUBSTANTIALLY CONTROLLED BY HIM ON A BASIS LESS FAVORABLE TO THE HOSPITAL THAN THAT ON WHICH SUCH PROPERTY OR SERVICE IS MADE AVAILABLE TO THE GENERAL PUBLIC. B) FURNISHING OF GOODS, SERVICES, OR FACILITIES BY THE HOSPITAL TO A GOVERNING BOARD MEMBER, UNLESS SUCH FURNISHING IS MADE ON A BASIS NOT MORE FAVORABLE THAN THAT ON WHICH SUCH GOODS, SERVICES, OR FACILITIES ARE MADE AVAILABLE TO THE GENERAL PUBLIC OR EMPLOYEES OF THE HOSPITAL. C) ANY TRANSFER TO OR USE BY OR FOR THE BENEFIT OF A GOVERNING BOARD MEMBER OF THE INCOME OR ASSETS OF THE HOSPITAL EXCEPT BY PURCHASE FOR FAIR MARKET VALUE. ANY DIRECTOR, OFFICER, EMPLOYEE, OR COMMITTEE MEMBER HAVING AN INTEREST IN A CONTRACT OR OTHER TRANSACTION PRESENTED TO THE BOARD OF DIRECTORS OR A COMMITTEE THEREOF FOR AUTHORIZATION, APPROVAL OR RATIFICATION SHALL GIVE PROMPT, FULL AND FRANK DISCLOSURE OF HIS INTEREST TO THE BOARD OR COMMITTEE PRIOR TO ITS ACTING ON SUCH CONTRACT OR TRANSACTION. THE BODY TO WHICH SUCH DISCLOSURE IS MADE SHALL THEREUPON DETERMINE, BY MAJORITY VOTE, WHETHER THE DISCLOSURE SHOWS THAT A CONFLICT OF INTEREST EXISTS OR CAN REASONABLY BE CONSTRUED TO EXIST. IF A CONFLICT IS DEEMED TO EXIST, SUCH PERSON SHALL NOT VOTE ON, NOR USE HIS PERSONAL INFLUENCE ON, NOR PARTICIPATE (OTHER THAN TO PRESENT FACTS) IN THE DISCUSSIONS OR DELIBERATIONS WITH RESPECT TO SUCH CONTRACT OR TRANSACTION. SUCH PERSON MAY NOT BE COUNTED IN DETERMINING THE EXISTENCE OF A QUORUM AT ANY MEETING WHERE THE CONTRACT OR TRANSACTION IS UNDER DISCUSSION OR IS BEING VOTED UPON. THE MINUTES OF THE MEETING SHALL REFLECT THE DISCLOSURE MADE, THE VOTE THEREON AND, WHERE APPLICABLE, THE ABSTENTION FROM VOTING AND PARTICIPATING, AND WHETHER A QUORUM WAS PRESENT. COMPENSATION REVIEW POLICY FORM 990, PART VI, SECTION B, LINES 15A & 15B CLARION HOSPITAL CONTRACTED WITH QUORUM HEALTH RESOURCES, AN UNRELATED MANAGEMENT COMPANY, FOR THE SERVICES OF BYRON QUINTON, CEO, AND VINCENT LAMORELLA, CFO. AMOUNTS PAID TO QUORUM HEALTH RESOURCES ARE REPORTED IN FORM 990, PART VII, SECTION B, AND ARE FOR SERVICES PROVIDED BY THE INDIVIDUALS AS WELL AS OTHER SERVICES PROVIDED BY THE COMPANY. NO COMPENSATION WAS REPORTED FOR EITHER INDIVIDUAL ON FORM 990, PART VII OR SCHEDULE J, PART II. ALTHOUGH THE ORGANIZATION DID NOT DIRECTLY PAY THE COMPENSATION OF THE CEO OR CFO DURING THE YEAR, THE ORGANIZATION DOES HAVE A COMPENSATION REVIEW POLICY IN PLACE. IT SHALL BE THE POLICY OF THE BOARD OF DIRECTORS TO ESTABLISH AND MAINTAIN AN EXECUTIVE COMPENSATION PROGRAM FOR THE PRESIDENT/CEO AND CHIEF FINANCIAL OFFICER WHICH: (1) ENABLES THE BOARD TO ATTRACT AND RETAIN THE EXECUTIVES NEEDED TO EFFECTIVELY CARRY OUT THE MISSION OF THE ORGANIZATION AND THE POLICIES OF THE BOARD. (2) RESPONDS TO MARKET TRENDS. (3) REFLECTS THE VALUE OF THE FUNCTIONAL DEMANDS OF EXECUTIVE WORK. (4) REWARDS PERFORMANCE RESULTS. (5) IS BASED ON FACTORS THAT PROVIDE FOR JUST AND REASONABLE COMPENSATION. COMPENSATION ACTIONS APPROVED BY THE BOARD OF DIRECTORS MUST BE DOCUMENTED, AND SUCH DOCUMENTATION SHALL INCLUDE THE BASES OF EACH COMMITTEE'S ACTIONS AND THE NAMES OF THE COMMITTEE MEMBERS INVOLVED IN THE ACTIONS. THE DOCUMENTED PROCESS FOR DETERMINING EXECUTIVE COMPENSATION SHALL INCLUDE: (1) TERMS OF THE COMPENSATION ARRANGEMENTS. (2) APPROVAL DATE. (3) NAMES OF BOARD MEMBERS WHO APPROVED THE COMPENSATION DECISIONS. (4) DATA USED IN THE COMPENSATION DECISION. (5) DISCLOSURES OF CONFLICT OF INTEREST, IF ANY. (6) ANNUAL REVIEW OF COMPENSATION RECORDS. THE BOARD OF DIRECTORS AUTHORIZES THE HUMAN RESOURCE COMMITTEE TO REVIEW AND RECOMMEND COMPENSATION DECISIONS FOR THE PRESIDENT/CEO. THE BOARD OF DIRECTORS AUTHORIZES THE FINANCE COMMITTEE TO REVIEW AND RECOMMEND COMPENSATION DECISIONS FOR THE CHIEF FINANCIAL OFFICER. SUCH RECOMMENDATIONS ARE REPORTED TO AND ACTED UPON BY THE FULL BOARD OF DIRECTORS. GUIDELINES FOR DETERMINING PROPOSED COMPENSATION FOR THE PRESIDENT/CEO AND THE CHIEF FINANCIAL OFFICER (A) A REVIEW AND APPROVAL OF THE OFFICER'S COMPENSATION SHALL OCCUR INITIALLY UPON HIRE OF THE OFFICER AND WHENEVER THE OFFICER'S COMPENSATION IS MODIFIED. (B) ANNUALLY, THE HUMAN RESOURCE COMMITTEE OF THE BOARD OF DIRECTORS SHALL ESTABLISH PERFORMANCE STANDARDS FOR THE PRESIDENT/CEO WHICH SHALL BE USED IN DETERMINING COMPENSATION ACTIONS. THE HUMAN RESOURCE COMMITTEE SHALL HAVE THE AUTHORITY TO REVIEW THE PERFORMANCE OF THE PRESIDENT/CEO AND RECOMMEND A COMPENSATION ADJUSTMENT, IF WARRANTED IN THE JUDGMENT OF THE COMMITTEE. (C) ANNUALLY, THE PRESIDENT/CEO SHALL ESTABLISH PERFORMANCE STANDARDS FOR THE CHIEF FINANCIAL OFFICER WHICH SHALL BE USED IN DETERMINING COMPENSATION ACTIONS. THE PRESIDENT/CEO SHALL HAVE THE AUTHORITY TO REVIEW THE PERFORMANCE OF THE CHIEF FINANCIAL OFFICER AND PROPOSE A COMPENSATION ADJUSTMENT, IF WARRANTED IN THE JUDGMENT OF THE PRESIDENT/CEO, TO THE FINANCE COMMITTEE. (D) INFORMATION GATHERED AND USED IN COMPENSATION ACTIONS SHALL INCLUDE: 1. COMPENSATION PAID BY SIMILAR ORGANIZATIONS. 2. QHR WILL PROVIDE COMPENSATION COMPARABILITY DATA FOR THE POSITION COMPILED BY INDEPENDENT ORGANIZATIONS. THE DATA MAY BE BASED ON INDUSTRY SURVEYS, EXPERT COMPENSATION STUDIES, OR OTHER COMPARABLE DATA. 3. REFERENCE TO FUNCTIONALLY COMPARABLE POSITIONS. 4. THE AVAILABILITY OF SIMILAR SERVICES IN THE GEOGRAPHIC SERVICE AREA. COMPENSATION WAS LAST REVIEWED, USING THE ABOVE METHOD, IN FEBRUARY 2011. DOCUMENT DISCLOSURE FORM 990, PART VI, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE BY WRITTEN REQUEST FOR A LEGITIMATE BUSINESS PURPOSE, AS DETERMINED BY TOP MANAGEMENT. REQUESTED DOCUMENTS WILL BE MAILED TO THE REQUESTOR. COMPENSATION OF BOARD MEMBERS FORM 990, PART VII, SECTION A THOMAS FREENOCK, DIRECTOR, AND CATHERINE CUNNINGHAM, DIRECTOR, ARE BOTH COMPENSATED BY HEALTH SERVICES OF CLARION, A RELATED ORGANIZATION. THEY DO NOT RECEIVE ANY COMPENSATION FOR THEIR SERVICES AS MEMBERS OF THE BOARD OF DIRECTORS OF CLARION HOSPITAL. OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 5 UNREALIZED GAIN ON INVESTMENT $ 891,573 TRANSFER TO AFFILIATES (2,060,435) CHANGE IN BENEFICIAL INTEREST OF TRUST 22,486 CHANGE IN NET ASSETS OF CLARION HOSPITAL FOUNDATION 249,078 -------------- TOTAL $ ( 897,298) HEALTH SERVICES OF CLARION ONE HOSPITAL DRIVE CLARION PA 16214 753126134 PHYSICIAN GRP PA 501(C)(3) 3 NA CLARION HEALTHCARE SYSTEM INC ONE HOSPITAL DRIVE CLARION PA 16214 251534023 HOLDING CO PA 501(C)(3) 11A I NA CLARION DEVELOPMENT CORPORATION 24 DOCTORS LANE CLARION PA 16214 251516298 PHARMACY PA NA C CORP false false false true false false false false true false false false true true false false true false