2012-05-14T12:26:18-05:00 2011-06-30 PARENTEBEARD LLC SUITE 200 221 W PHILADELPHIA ST YORK PA 174012993 990 2010-07-01 251778644 PINNACLE HEALTH HOSPITALS PINN 7172318245 409 SOUTH SECOND ST PO BOX 8700 HARRISBURG PA 171058700 WILLIAM H PUGH 7172318245 2012-05-11 1 JULIUS GREEN CPA 7178467000 2010 2016-02-24 21:20:13Z WILLIAM H PUGH 409 SOUTH SECOND ST PO BOX 8700 HARRISBURG PA 171058700 757969928 0 X WWW.PINNACLEHEALTH.ORG X 1996 PA INPATIENT AND OUTPATIENT NON-PROFIT HEALTHCARE SERVICES FOR CITIZENS OF THE LOCAL COMMUNITY. 20 16 4476 466 3776477 0 6857923 6634714 552134240 602219557 1334284 4942988 -795480 -1027022 559530967 612770237 0 0 0 0 261149682 266807037 0 0 0 284364093 307799228 545513775 574606265 14017192 38163972 629460924 661811208 437790572 433311643 191670352 228499565 X PROVIDING BOTH INPATIENT AND OUTPATIENT HEALTHCARE SERVICES ON A NON-PROFIT BASIS FOR CITIZENS OF THE SURROUNDING COMMUNITY. 0 0 469136795 581476401 PINNACLE HEALTH HOSPITALS (CORP 200)PINNACLE HEALTH HOSPITALS SUBSIDIZES THE COST OF TREATING PATIENTS WHO ARE UNINSURED, UNABLE TO PAY, OR ARE ON GOVERNMENT PROGRAMS WHERE REIMBURSEMENT IS LESS THAN THE COST OF PROVIDING THE SERVICE.AS AN ANCHOR INSTITUTION AND A LEADER IN OUR COMMUNITY, OUR ROLE HAS BEEN TO CARE FOR PATIENTS EVEN IN THESE DIFFICULT ECONOMIC TIMES. IN KEEPING WITH OUR TRADITION OF CARING FOR ALL PATIENTS REGARDLESS OF THEIR ABILITY TO PAY, PINNACLE HEALTH IS A FORCE FOR STABILITY, STRENGTH, AND RELIABILITY FOR THOSE WE SERVE. IN ADDITION TO FINANCIAL SUPPORT, OUTREACH TO THE COMMUNITY IS CRUCIAL TO ACHIEVING OUR MISSION. THROUGH VOLUNTEERISM AND ENGAGEMENT, WE STRIVE TO BE A FORCE FOR HEALTH AND WELL-BEING. WE HELP THE UNDERSERVED, MENTOR STUDENTS, LEND EXPERTISE TO COMMUNITY ORGANIZATIONS, AND EDUCATE THE COMMUNITY ON DISEASE PREVENTION AND MANAGEMENT.COMMUNITY HEALTH IMPROVEMENT SERVICESAS ONE OF THE LARGEST PROVIDERS OF HEALTHCARE SERVICES IN THE STATE OF PENNSYLVANIA, PINNACLE HEALTH HOSPITALS OFFERS A VARIETY OF CLINICAL, EDUCATION AND SUPPORT SERVICES FOCUSED ON IMPROVING THE HEALTH OF THE COMMUNITIES WE SERVE.COMMUNITY HEALTH EDUCATIONDIABETES EDUCATION FOR DISPARATE POPULATIONS (200-0830):TO PROVIDE CULTURALLY AND ECONOMICALLY APPROPRIATE EDUCATION THAT ENABLES PERSONS WITH DIABETES TO BETTER MANAGE THEIR DISEASE.KIDSHAPE (200-1076):9 WEEK PEDIATRIC WEIGHT MANAGEMENT PROGRAM FOR KIDS AGE 6 - 14 YEARS OLD. KIDSHAPE TEACHES THE ENTIRE FAMILY HOW TO EAT MORE NUTRITIOUSLY, MAKE EXERCISE A FUN PART OF THE DAILY ROUTINE, FORM NEW HEALTHY HABITS, AND TO LIKE THEMSELVES, REGARDLESS OF SIZE. A TEAM OF HEALTH EXPERTS CONSISTING OF A REGISTERED DIETITIAN, A MENTAL HEALTH PROFESSIONAL, A PHYSICAL ACTIVITY EXPERT, AND A HEALTH EDUCATOR ADMINISTERS THE KIDSHAPE PROGRAM.ALL KIDSHAPE PROGRAMS ARE FAMILY-BASED. EACH PROGRAM INCORPORATES HANDS-ON ACTIVITIES TO EMPOWER YOUTH AND ADULTS TO EAT HEALTHY, MOVE MORE, AND FEEL GOOD.A VARIETY OF CHILDBIRTH EDUCATION PROGRAMS ARE OFFERED FOR NEW AND EXPECTANT PARENTS AND SIBLINGS INCLUDING INFANT CARE CLASSES. SUPPORT GROUPS ARE OFFERED FREE OF CHARGE TO HELP PEOPLE UNDERSTAND AND COPE WITH PARTICULAR PROBLEMS OR ILLNESSES. THEY INCLUDE DIABETES, BEREAVEMENT, CAREGIVER, TRANSPLANT, AND HEART DISEASE.CHILDREN'S HEALTH FAIR, CONFERENCES AND LECTURES PROVIDE INFORMATION ON HEALTHY LIFESTYLES AND HEALTH CAREER SESSIONS, YOUTH HEALTH SCREENINGS, YOUTH OBESITY PREVENTION, CHILD ABUSE AWARENESS/PREVENTION AND LITERACY PROGRAMS FOR CHILDREN. COMMUNITY HEALTH FAIRSCOMMUNITY LECTURES ON A VARIETY OF TOPICS, INCLUDING CARDIOVASCULAR HEALTH, AIDS, SPORTS MEDICINE, AND ETHICS.TOBACCO CESSATION EDUCATION IN CLINICS. HEALTH EDUCATION STORIES IN THE NEWSPAPER, ON TELEVISION, ON RADIO AND IN HOSPITAL NEWSLETTER.CLERGY IS AVAILABLE TO PATIENTS AND FAMILY MEMBERS TWENTY-FOUR HOURS A DAY. AS DESCRIBED IN THE HOSPITAL'S MISSION STATEMENT, PINNACLE HEALTH HOSPITALS IS COMMITTED TO PROVIDING COMMUNITY-BASED PROGRAMS AND SERVICES WHICH WILL ENHANCE THE HEALTH STATUS OF THE PEOPLE WE SERVE. TOWARD THAT END, PINNACLE HEALTH HOSPITALS PROVIDED THE FOLLOWING WELLNESS AND SCREENING PROGRAMS:SCREENINGS:CHOLESTEROL SCREENINGBODY COMPOSITION SCREENINGPROSTATE SCREENINGPODIATRIC SCREENINGINFANT DEVELOPMENT SCREENINGSSPEECH AND HEARING SCREENINGSDEPRESSION AND ANXIETY SCREENINGSLEAD POISONBONE DENSITYNUTRITION THERAPY EDUCATION PROGRAMSLEAD POISONING SCREENINGS PINNACLE HEALTH-FOX CHASE REGIONAL CANCER CENTER'S (200-8007) BOARD-CERTIFIED SURGEONS AND MEDICAL ONCOLOGISTS ATTACK ALL TYPES OF CANCER, SUPPORTED BY A TEAM OF PHARMACISTS, SOCIAL WORKERS, REHABILITATION AND PAIN MANAGEMENT SPECIALISTS EACH WITH A UNIQUE AWARENESS OF PATIENT NEEDS. HEART FAILURE CENTER (200-0221) WAS DEVELOPED IN AN EFFORT TO PROVIDE PATIENTS SUFFERING FROM HEART FAILURE AN ALTERNATIVE TO FREQUENT HOSPITALIZATIONS. OUR TEAM OF EXPERIENCED HEALTHCARE PROFESSIONALS ASSISTS YOU IN LEARNING THE SKILLS NEEDED TO HELP SELF-MANAGE YOUR CHRONIC ILLNESS.THE PINNACLE HEALTH WOUND AND HYPERBARIC CENTER (200-0827) WITH HYPERBARIC OXYGEN THERAPY CAPABILITIES IS DEVOTED TO THE TREATMENT, REHABILITATION AND PREVENTION OF CHRONIC WOUNDS. OUR CARING TEAM OF SPECIALTY PHYSICIANS, NURSES, PHYSICAL THERAPISTS AND NUTRITIONISTS CAN HELP ACCELERATE PATIENTS' HEALING, DECREASE DISCOMFORT, REDUCE COMPLICATIONS AND DECREASE RE-OCCURRENCE. SPINE INSTITUTE (200-7187) COMBINES THE EXPERTISE OF NEUROSURGEONS, ORTHOPEDIC SURGEONS, PHYSIATRISTS, NEUROLOGISTS, PAIN MANAGEMENT SPECIALISTS, NURSES, IMAGING SERVICES AND REHABILITATION SERVICES TO TARGET EVERY PATIENT'S PARTICULAR PROBLEM AND PROVIDE OPTIMAL TREATMENT. BUS PASSES OR TAXI FEES ARE PROVIDED TO PATIENTS AND FAMILIES MEETING THE ORGANIZATION'S FINANCIAL ASSISTANCE GUIDELINES TO ENHANCE PATIENT ACCESS TO CARE. RESIDENT PHYSICIAN TRAINING PROGRAMS FOR ORTHOPEDIC SURGERY, INTERNAL MEDICINE, GENERAL SURGERY, PODIATRY, AND FAMILY PRACTICE.FELLOWSHIP PROGRAMS FOR TOXICOLOGY, SPORTS MEDICINE, AND MATERNAL FETAL MEDICINE.CLINICAL SITE FOR MEDICAL STUDENTSCLINICAL SITE FOR NURSING STUDENTSCLINICAL SITE FOR DIETITIANSCLINICAL SITE FOR EMERGENCY MEDICAL PERSONNELCLINICAL SITE FOR PARAMEDIC STUDENTSCLINICAL SITE FOR RESPIRATORY THERAPY STUDENTSCLINICAL SITE FOR RADIOLOGY STUDENTS INTERNSHIPS FOR MEDICAL ASSISTANTS, SPEECH AND HEARING, PT/OT AND OTHER ALLIED HEALTH PROFESSIONAL TRAINING.SUPERVISION FOR PSYCHOLOGY STUDENTSCONTINUING EDUCATION FOR NURSES AND PHYSICIAN OFFICE STAFF AND FOR LOCAL COMMUNITY PROFESSIONALS SUCH AS SCHOOL NURSES.TOXICOLOGY CENTER IS A NEEDED COMMUNITY SERVICE THAT PROVIDES SPECIALIZED CARE AND RELEVANT TREATMENT TO ADULTS AND ADOLESCENTS AS A RESULT OF OVERDOSE OR ACCIDENTAL POISONING. THE TOXICOLOGY CENTER FILLS A CRITICAL PUBLIC HEALTH GAP, IS A SIGNIFICANT RESOURCE TO THE REGION AND ACROSS THE STATE AND DEDICATED TO THE EMERGENT NEEDS OF UNINTENTIONAL INJURY AND OPERATES AT A LOSS. AUXILIARY ERNEST R. MCDOWELL SCHOLARSHIP PROGRAMEQUIPMENT DONATIONSUNITED WAY FUNDRAISINGBAILEY HOUSE (200-1101) IS OUR HOME AWAY FROM HOME. IT PROVIDES FREE OVERNIGHT LODGING AND A COMFORTABLE, SUPPORTIVE, AND NURTURING ENVIRONMENT FOR FAMILIES FROM OUTSIDE OF THE HARRISBURG AREA.NURSE/FAMILY PARTNERSHIP PROGRAM (200-7021) WAS IMPLEMENTED BASED ON VERY HIGH TEEN BIRTH RATES AND A HIGH INCIDENCE OF WOMEN NOT RECEIVING PRENATAL CARE DURING THE FIRST TRIMESTER. THIS IS A NATIONALLY RENOWNED, EVIDENCE BASED, NURSE HOME VISITATION PROGRAM THAT IMPROVES THE HEALTH, WELL-BEING AND SELF SUFFICIENCY OF LOW INCOME, FIRST TIME PARENTS AND THEIR CHILDREN. CHILDREN'S RESOURCE CENTER (200-0128) (CRC) PROVIDES CARE AND COORDINATION TO CHILDREN SUSPECTED OF BEING ABUSED AND ENGAGES MULTIPLE DISCIPLINES TO DIAGNOSE, EVALUATE AND TREAT CHILDREN WHO ARE VICTIMS OF SEXUAL ABUSE. 16129735 14168307 PINNACLE HEALTH EMERGENCY DEPARTMENT SERVICES (CORP 205)PINNACLE HEALTH EMERGENCY DEPARTMENT SERVICES (PHEDS) IS A TAX EXEMPT, NON-PROFIT CORPORATION ENGAGED IN PROVIDING PROFESSIONAL SERVICES IN THE PINNACLE HEALTH EMERGENCY DEPARTMENT. EMERGENCY SERVICESTWENTY-FOUR HOUR MEDICAL EMERGENCY SERVICE IS PROVIDED IN TWO EMERGENCY DEPARTMENTS, (HARRISBURG HOSPITAL AND COMMUNITY GENERAL HOSPITAL) STAFFED BY PHYSICIANS AND NURSES SPECIALIZING IN EMERGENCY MEDICINE AND SUPPORT PERSONNEL. SERVICES ARE OPEN TO ALL PERSONS WITHOUT REGARD TO AGE, SEX, RACE, RELIGION, NATIONAL ORIGIN, HANDICAP OR ABILITY TO PAY.MEDICAL COVERAGE IS GIVEN FOR COMMUNITY SPORTING EVENTS.CPR TRAINING PROGRAMS ARE OFFERED TO COMMUNITY GROUPS AND ORGANIZATIONS.TWENTY-FOUR HOUR EMERGENCY MEDICAL COMMAND IS PROVIDED FOR THE TRI-COUNTY AREA.DURING FISCAL YEAR 2011, HARRISBURG HOSPITAL EMERGENCY DEPARTMENT HAD 56,926 BILLED PATIENT VISITS AND COMMUNITY GENERAL HOSPITAL HAD 34,118 BILLED PATIENT VISITS. 485266530 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 1 0 0 1 X 0 0 4476 1 1 1 0 0 0 0 0 0 0 0 0 X 20 16 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 PA X WILLIAM H PUGH CFO 7172318245 409 SOUTH SECOND ST HARRISBURG PA 171058700 X ROBERT L LYON 0.70 X X 0 0 0 GEORGE F GRODE 0.60 X X 0 0 0 JOHN O CAMPBELL 0.70 X 0 0 0 SUSAN S COHEN 0.50 X 0 0 0 FELIX GUTIERREZ MD 0.40 X 0 0 0 M RICHARD KLEIMAN 0.50 X 0 0 0 DEBORAH S MILLER 0.60 X 0 0 0 DOUGLAS A NEIDICH 0.80 X 0 0 0 LARRY L SOLLENBERGER MD 0.30 X 0 0 0 CLARENCE E ASBURY 0.80 X 0 0 0 DENNIS WALSH 0.30 X 0 0 0 BONY R DAWOOD 0.70 X 0 0 0 DENISE F HARR MD 0.30 X 0 0 0 GREGORY CAVOLI 0.20 X 0 0 0 MARK KIMMEL ESQ 0.10 X 0 0 0 DOUGLAS C DYER 0.30 X 0 0 0 STEVEN C KUSIC 0.70 X 0 0 0 KENNETH OKEN MD 0.50 X 0 0 0 MICHAEL L FERNANDEZ MD 0.20 X 0 0 0 PHILIP GUARANESCHELLI 30.00 X X 0 553520 59656 CHRISTOPHER P MARKLEY ESQ 20.00 X 0 319451 48261 RICHARD C SENECA ESQ 32.80 X 269851 0 0 WILLIAM H PUGH 28.20 X 0 370836 43834 KIM KELLY 40.00 X 490605 0 32411 WENDY BIEDRZYCKI 40.00 X 369113 0 23611 EDWARD HILDREW 40.00 X 348580 0 58279 ERIC KRIEG 40.00 X 320055 0 53679 JULIAN GUTIERREZ 40.00 X 352828 0 38291 ROGER LONGENDERFER MD 0.00 X 0 3547596 45075 2151032 4791403 403097 141 1 1 0 SIEMENS MEDICAL SOLUTIONS USA INC PO BOX 640401 PITTSBURGH PA 15264 SOFTWARE SUPPORT SVCS 15960620 SODEXO PO BOX 905374 CHARLOTTE NC 28290 FOOD SERVICES 15723579 CPTA INC 205 SOUTH FRONT STREET HARRISBURG PA 17104 TRANSPLANT SERVICES 2828059 OWENS & MINOR INC 7437 INDUSTRIAL BOULEVARD ALLENTOWN PA 18106 MEDICAL SUPPLIES 2370888 QUANTUM IMAGING & THERAPEUTIC ASSOCIATES 629-D LOWTHER ROAD LEWISBERRY PA 17339 RADIOLOGY SERVICES 1615529 48 22269 925163 3611994 2075288 1440 6634714 PATIENT REVENUE, NET 621500 597095500 593341935 3753565 CONTRACTED MEDICAL SER 621990 3543595 3543595 MEDICAL EDUCATION 900099 493991 493991 MISC INPATIENT/OUTPATI 621990 261182 261182 MANAGEMENT & SUPPORT 900099 160008 160008 665281 665281 602219557 2866071 -2821284 5687355 7811953 10116408 -2304455 -2304455 22912 -2327367 136874756 285444 134371937 711346 2502819 -425902 2076917 2076917 MISCELLANEOUS INCOME 900099 601467 601467 VENDOR REBATE INCOME 900099 354566 354566 CAFETERIA SALES 900099 162577 162577 158823 158823 1277433 612770237 595644708 3776477 6714338 250498 124147 126351 198373922 182207293 16166629 19195687 17209579 1986108 34535224 31577413 2957811 14451706 10300851 4150855 13841690 81666 13760024 23604 11698 11906 54060 24689 29371 96098 96098 55493544 41085735 14407809 1869292 240204 1629088 114036829 111480339 2556490 5818922 3626164 2192758 31852289 18374658 13477631 356015 284427 71588 1170632 986369 184263 10895740 7767792 3127948 34942573 27417962 7524611 5247737 4044784 1202953 BAD DEBT EXPENSE 31157268 28041541 3115727 TEMP. RESTRICTED DONATI 489428 122357 367071 DUES AND SUBSCRIPTIONS 235804 95696 140108 MISCELLANEOUS EXPENSE 139845 92472 47373 SAFETY COMPLIANCE 77858 68694 9164 574606265 485266530 89339735 0 4704 4704 918392 541276 56411226 63659797 2747263 2639637 11860354 11419513 6879061 6531967 748956895 417062659 295328948 331894236 222168206 206320298 6157458 4875133 141669 26985312 33782978 629460924 661811208 153858256 122941664 264008 253250368 279575398 11935494 19277133 18482446 11517448 437790572 433311643 X 161192189 194321459 14372294 15239834 16105869 18938272 191670352 228499565 629460924 661811208 X 38163972 -1334759 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 12522247 12522247 425100130 215820900 209279230 11737202 5532851 6204351 248996775 181574615 67422160 50600541 14134293 36466248 331894236 DUE FROM RELATED PARTIES 4841634 DEFERRED FINANCING COSTS (NET) 2924214 PERM. RESTRICTED ASSETS HELD BY PINNACLE HEALTH FOUNDATION 10777296 TEMP. RESTRICTED ASSETS HELD BY PINNACLE HEALTH FOUNDATION 15239834 33782978 ADVANCES FROM THIRD-PARTY PAYORS 3809400 DUE TO THIRD PARTY PAYORS 3086640 ACCRUED LONG-TERM SWAP CONTRACT 4621408 11517448 612770237 574606265 38163972 15911419 -17246178 -1334759 36829213 630946180 12179915 1212156 13392071 617554109 -4783872 -4783872 612770237 584605703 10116408 10116408 574489295 116770 200 116970 574606265 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE PINNACLE HEALTH SYSTEM EVALUATES UNCERTAIN TAX POSITIONS USING A TWO-STEP APPROACH FOR RECOGNIZING AND MEASURING TAX BENEFITS TAKEN OR EXPECTED TO BE TAKEN IN AN UNRELATED BUSINESS ACTIVITY TAX RETURN AND DISCLOSURES REGARDING UNCERTAINTIES IN TAX POSITIONS. NO ADJUSTMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS WERE REQUIRED AS A RESULT OF THIS EVALUATION. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN ADDITIONAL MINIMUM PENSION LIABILITY 32,890,534. FUND BALANCE TRANSFER - PINNACLE HEALTH SYSTEM 1,212,800. FUND BALANCE TRANSFER - PINNACLE HEALTH MEDICAL SERVICES -37,846,128. FUND BALANCE TRANSFER - PINNACLE HEALTH HOME CARE & HOSPICE -10,712,810. FUND BALANCE TRANSFER - COMMUNITY LIFE TEAM -2,644,126. FUND BALANCE TRANSFER - PINNACLE HEALTH FOUNDATION -146,448. PART XII, LINE 2D - OTHER ADJUSTMENTS: NET ASSETS RELEASED FROM RESTRICTIONS 1,232,828. INVESTMENT FEES REPORTED NET OF INVESTMENT INCOME ON FINANCIAL STATEMENTS -20,672. PART XII, LINE 4B - OTHER ADJUSTMENTS: RESTRICTED CONTRIBUTIONS 3,743,386. INVESTMENT INCOME FROM RESTRICTED ASSETS 213,637. NET REALIZED GAIN/LOSS FROM SALE OF RESTRICTED INVESTMENTS 450,350. RENTAL EXPENSES SHOWN NET OF RENTAL INCOME -10,116,408. UNRESTRICTED CONTRIBUTIONS FROM PINNACLE HEALTH FOUNDATION 925,163. PART XIII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES SHOWN NET OF RENTAL INCOME 10,116,408. PART XIII, LINE 4B - OTHER ADJUSTMENTS: INSURANCE EXPENSE ADJUSTED FOR FOUNDATION CONTRIBUTION 200. 1 1 X 1 X 250.000000000000 1 X 1 1 1 0 1 1 6363249 6363249 0.01170 61702487 43771485 17931002 0.03300 68065736 43771485 24294251 0.04470 3700581 640 3699941 0.00680 14520702 6114395 8406307 0.01550 6757 0 6757 0.00000 31771 31771 0.00010 3387743 3387743 0.00620 21647554 6115035 15532519 0.02860 89713290 49886520 39826770 0.07330 389667 0 389667 0.00070 313 0 313 0.00000 21193 0 21193 0.00000 12515 0 12515 0.00000 423688 423688 0.00070 1 12639190 5528445 118370165 117186810 1183355 X 1 1 1 WEST SHORE SURGERY CENTER LTD SURGICAL CARE - MEDICAL SERVICES 0.49000 0.00000 0.49000 2 SUSQUEHANNA VALLEY SURGERY CENTER SURGICAL CARE - MEDICAL SERVICES 0.50000 0.00000 0.50000 3 WALNUT BOTTOM RADIOLOGY LLC OUTPATIENT IMAGING SERVICES 0.50000 0.00000 0.50000 2 1 PINNACLE HEALTH HOSPITALS - HARRISBURG

111 SOUTH FRONT STREET HARRISBURG PA 17101

X X X X X 2 PINNACLE HEALTH HOSPITALS - CGOH

4300 LONDONDERRY ROAD HARRISBURG PA 17109

X X X X X NOT APPLICABLE 1 6 HORIZON HEALTH CARE SERVICES LLP

607 N DUKE STREET LANCASTER PA 17602

IN-HOME DRUG INFUSION THERAPY PINNACLE HEALTH EMERGENCY DEPARTMENT SER

111 SOUTH FRONT STREET HARRISBURG PA 17101

EMERGENCY MEDICAL SERVICES SUSQUEHANNA VALLEY SURGERY CENTER LLC

4310 LONDONDERRY ROAD SUITE 1 HARRISBURG PA 17109

SURGICAL CARE - MEDICAL SERVICES WEST SHORE SURGERY CENTER LTD

2015 TECHNOLOGY PARKWAY MECHANICSBURG PA 17050

SURGICAL CARE - MEDICAL SERVICES CONCENTRA OCCUPATIONAL HEALTHCARE HARRIS

495 OLD CONNECTICUT PATH SUITE 220 FRAMINGHAM MA 01701

URGENT CARE CENTER - MEDICAL SERVICES WALNUT BOTTOM RADIOLOGY LLC

850 WALNUT BOTTOM ROAD CARLISLE PA 17013

OUTPATIENT RADIOLOGY AND IMAGING SERVICES PART I, LINE 6A: THE COMMUNITY BENEFIT REPORT IS PREPARED BY PINNACLE HEALTH SYSTEM, THE PARENT ORGANIZATION. PART I, LINE 7: THE COSTS OF CHARITY CARE AND UNREIMBURSED MEDICAID COSTS ARE CALCULATED BY THE HOSPITAL'S COST ACCOUNTING SYSTEM FOR EACH OF THE INDIVIDUAL SERVICES PROVIDED TO THE PATIENT. IT UTILIZES HOSPITAL EXPENSES FROM THE GENERAL LEDGER AND REVENUE DETAILS FROM THE PATIENT ACCOUNTING SYSTEM. EACH DEPARTMENT WITHIN THE HOSPITAL IS CLASSIFIED AS EITHER INDIRECT (OVERHEAD) OR DIRECT (PATIENT CARE AREAS). EXPENSES ARE CLASSIFIED AS FIXED OR VARIABLE AS THEY RELATE TO PATIENT VOLUME. LOGICAL STATISTICS ARE USED TO ALLOCATE OVERHEAD EXPENSES TO THE PATIENT CARE DEPARTMENTS. USING EITHER A RATIO OF COST-TO-CHARGE OR RVUS (RELATIVE VALUE UNITS), THE DIRECT AND INDIRECT COSTS FOR EACH DEPARTMENT ARE ALLOCATED TO THE SERVICES THEY PROVIDE. PART I, LINE 7G: THE SUBSIDIZED SERVICES INCLUDE PRESCRIPTION MEDICATIONS THAT WERE PROVIDED AT NO COST TO INPATIENTS THAT OTHERWISE WOULD NOT HAVE BEEN ABLE TO OBTAIN THE MEDICATIONS. PART I, L7 COL(F): THE AMOUNT OF BAD DEBT INCLUDED IN FORM 990, PART IX, LINE 25 AND NOT INCLUDED FOR THE PURPOSES OF CALCULATING THE APPLICABLE PERCENTAGES OF SCHEDULE H IS $31,157,268. PART II: WITH A FOCUS ON PROVIDING LEADERSHIP IN IMPROVING THE OVERALL HEALTH OF OUR COMMUNITY, PINNACLE HEALTH HOSPITALS (PHH) VALUES RELATIONSHIPS WITH COMMUNITY PARTNERS AND THE ASSETS THEY BRING TO ANY COLLABORATIVE EFFORTS. PINNACLE HEALTH HOSPITALS HELPED CREATE THE DAUPHIN COUNTY HEALTH IMPROVEMENT PARTNERSHIP (DCHIP) COMPRISED OF REGIONAL HEALTH AND HUMAN SERVICE PROVIDERS, PAYORS, COUNTY GOVERNMENT, BUSINESSES AND EDUCATION. PHH HAS WORKED COLLABORATIVELY WITH PHYSICIANS, HEALTH AND HUMAN SERVICE ORGANIZATIONS FOR MANY YEARS TO MAXIMIZE COMMUNITY CAPACITY, PROVIDE NECESSARY SERVICES TO THE COMMUNITY AND REDUCE DUPLICATION OF SERVICES. PHH SERVES IN A CONVENING ROLE TO STRENGTHEN COMMUNITY ASSETS THROUGH REFERRAL NETWORKS AND PARTNERSHIPS; SUCH INITIATIVES INCLUDE THE PHARMACY VOUCHER PROGRAM WITH THE HARRISBURG PHARMACY, AND WITH THE LOCAL SCHOOL SYSTEM TO PROMOTE HEALTH AWARENESS AND PHYSICAL ACTIVITY AMONG CHILDREN. THE PROGRAM INCLUDES A PREMIUM SYSTEM TO ENCOURAGE STUDENTS TO ADOPT AND MAINTAIN A HEALTHIER LIFESTYLE. OUR JOINT VENTURES WITH REGIONAL PHYSICIAN SPECIALTY GROUPS AND RADIOLOGICAL SERVICES ARE NUMEROUS. BASED ON IDENTIFIED COMMUNITY NEEDS AND VULNERABLE POPULATIONS, CONTINUOUS AND FREE PUBLIC PROGRAMS ARE TARGETED AT VARIOUS LOCATIONS THROUGHOUT THE COMMUNITY. THESE PROGRAMS ARE INTENDED TO INFORM AND CHANGE THE HEALTH HABITS OF PARTICIPANTS THROUGH SUCH TOPIC AREAS AS DIABETES, HEART DISEASE, SEXUALLY TRANSMITTED DISEASE PREVENTION, CANCER, ACCESSING HEALTHCARE, BEHAVIORAL HEALTH, SMOKING CESSATION AND NUTRITION. EXAMPLES OF PINNACLEHEALTH'S LEADERSHIP IN BUILDING COMMUNITY CAPACITY ARE:CONGREGATIONAL HEALTH NETWORK (CHN) THE CONGREGATIONAL HEALTH NETWORK (CHN) MODEL IS BASED ON THE IDEA THAT THE BODY, MIND, SPIRIT, AND COMMUNITY ARE INEXTRICABLY CONNECTED. CHN IS AN ATTEMPT TO ADVANCE HEALTH AND NOT JUST PATCH THE CRACKS IN THE BROKEN HEALTH CARE SYSTEM. THE CHN IS A UNIQUE NETWORK THAT INCORPORATES A LARGE SOCIAL SUPPORT STRUCTURE INTO THE PROVISION OF HEALTHCARE SERVICES. BASED ON IDENTIFIED NEEDS, AN AGREEMENT (COVENANT) IS ESTABLISHED BETWEEN THE HEALTH SYSTEM AND THE CONGREGATION TO EXPEDITE THE MOVEMENT OF PATIENTS BETWEEN THE CONGREGATION, THE COMMUNITY, THE HOSPITAL AND OTHER POINTS OF CARE. A LIAISON IS ASSIGNED AS FACILITATOR TO ENSURE THAT CARE NEEDED IS PROVIDED. KEYSTONE COMMUNITY CARE CONTINUUM (KCCC) THE KEYSTONE COMMUNITY CARE CONTINUUM IS A COLLABORATION BETWEEN PINNACLE HEALTH SYSTEM AND FOUR INDEPENDENT COMMUNITY CLINICS TO IMPROVE ACCESS TO AND INTEGRATION OF CARE FOR OUR REGION'S NEEDIEST POPULATIONS. A HEALTH INFORMATION EXCHANGE WILL BE USED TO COMMUNICATE CARE, DIAGNOSTIC NEEDS AND RESULTS AMONG THE PROVIDERS. AN OUTCOMES MANAGEMENT TEAM WITH A SOCIAL WORKER AND TWO OUTCOMES MANAGERS WILL BE ASSIGNED TO USE THE INFORMATION FOR BETTER INTEGRATION OF CARE AMONG PROVIDERS AND USE OF MODELS DESIGNED FOR CHRONIC AND SPECIAL NEEDS POPULATIONS. THESE STAFF MEMBERS WILL HELP NAVIGATE PATIENTS THROUGH THEIR HEALTH CARE NEEDS TO IMPROVE COMPLIANCE AND HEALTH OUTCOMES. FINALLY, THE CONTINUUM WILL INCLUDE FREE CARE FUNDS ESTABLISHED TO REDUCE MANY OF THE BARRIERS TO CARE SUCH AS TRANSPORTATION, DIAGNOSTIC COSTS, SPECIALIST VISIT COSTS AND MEDICATIONS.AS A TRUSTED PLACE FOR OUR COMMUNITY TO GO FOR ACCESS TO PUBLIC HEALTH SERVICES AND INFORMATION, OUR STAFF OF PROFESSIONALS MEETS THE NEEDS OF A DIVERSE POPULATION WITH CULTURAL AWARENESS AND SENSITIVITY. THE CHILDREN'S RESOURCE CENTER (CRC) PARTNERS WITH LAW ENFORCEMENT, DISTRICT ATTORNEY'S OFFICES, SOCIAL SERVICES, PSYCHOLOGICAL SUPPORT SERVICES, CRISIS INTERVENTION, AND CHILD PROTECTION SERVICES TO PROVIDE EFFICIENT, QUALITY CARE IN A SAFE, CHILD-FRIENDLY ENVIRONMENT FOR CHILDREN SUSPECTED OF HAVING BEEN ABUSED OR NEGLECTED. THROUGH ONGOING TRAINING AND EDUCATION IN THE COMMUNITY, THE CRC HAS SEEN AN INCREASE IN PARTICIPATION WITH PARTNER AGENCIES IN AN EVER-WIDENING GEOGRAPHIC SERVICE AREA. SINCE 1994, OVER 6,500 CHILDREN WERE SERVED, WITH 871 CHILDREN SERVED IN 2010, ACROSS 24 COUNTIES IN THE CENTRAL PENNSYLVANIA REGION. SPECIFICALLY IN DAUPHIN COUNTY, THE CRC PROVIDED SERVICES TO OVER 1,200 CHILD VICTIMS AND THEIR NON-OFFENDING FAMILY MEMBERS - AN INCREASE OF 10% FROM 2009.OVER THIS PAST YEAR, THE PINNACLE HEALTH CHILDHOOD LEAD PREVENTION PROGRAM SCREENED 6,660 CHILDREN FOR LEAD POISONING. 392 OF THESE CHILDREN WERE DETERMINED TO BE LEAD POISONED. THAT CALCULATES TO APPROXIMATELY 6% OF THE TOTAL NUMBER TESTED. IF PINNACLE HEALTH DID NOT TEST THESE CHILDREN AT HEAD STARTS, WIC'S, DAY CARES, HEAD STARTS, AND HOME VISITS, THAT WOULD BE 392 CHILDREN WHO WOULD MOST LIKELY GO UNDETECTED FOR LEAD POISONING. IN ADDITION, STAFF ALSO TESTED 230 PREGNANT MOTHERS FOR LEAD POISONING. APPROXIMATELY 90% OF ALL THE CHILDREN WE TEST FOR LEAD ARE MEDICAL ASSISTANCE RECIPIENTS. THROUGH PINNACLE'S RESOURCE EDUCATION AND COMPREHENSIVE CARE FOR HIV (REACCH) CLINIC, MORE THAN 490 ACTIVE HIV POSITIVE PATIENTS ARE SERVED WHILE THE NUMBERS CONTINUE TO GROW BY 13% EACH YEAR. FOR FISCAL YEAR 2011, THE TOTAL NUMBER OF VISITS IS 1,528 AND AS A RESULT, REACCH STAFF OPENED FRIDAY CLINIC HOURS TO NOW COVER 5 DAYS/WEEK. THESE INITIATIVES ARE PART OF OVER $62 MILLION OF UNCOMPENSATED CARE, CHARITY CARE AND COMMUNITY BENEFITS PROVIDED BY PINNACLE HEALTH HOSPITALS TO THOSE IN NEED IN CENTRAL PENNSYLVANIA. PART III, LINE 4: THE FINANCIAL STATEMENTS DO NOT HAVE A SPECIFIC NOTE ON BAD DEBT EXPENSE; RATHER THE FINANCIAL STATEMENTS EVALUATE BAD DEBTS BASED ON ITS ALLOWANCE FOR DOUBTFUL ACCOUNTS. THE FOOTNOTE RELATED TO THE ALLOWANCE IS SUMMARIZED AS FOLLOWS: "PATIENT RECEIVABLES ARE RECORDED AT THEIR ESTIMATED NET REALIZABLE VALUE. THE ALLOWANCE FOR DOUBTFUL ACCOUNTS IS ESTIMATED BASED UPON HISTORICAL COLLECTION RATES."THE BAD DEBT EXPENSE ON LINE 2 WAS CALCULATED BY TAKING THE AMOUNT WRITTEN OFF TO BAD DEBT FOR EACH ACCOUNT AND CONVERTING IT TO CHARGES BY APPROPRIATELY ADJUSTING THE AMOUNT BY THE PAYOR REIMBURSEMENT PERCENTAGE FOR THAT ACCOUNT. THEN, THE COST/CHARGE RATIO FOR EACH SPECIFIC ACCOUNT, UTILIZING THE COSTS FROM THE HOSPITAL COST ACCOUNTING SYSTEM (DESCRIBED IN DETAIL ABOVE), WAS APPLIED TO THIS CALCULATED PORTION OF THE TOTAL CHARGES. FOR THE PORTION OF BAD DEBT EXPENSE THAT IS ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S CHARITY CARE POLICY, THE HOSPITAL UTILIZES DATA PROVIDED BY MEDEANALYTICS, A THIRD PARTY INDEPENDENT COMPANY, ON THE PATIENT'S ESTIMATED INCOME WHICH IS DERIVED BY NORMALIZING DATA FROM MULTIPLE, DISPARATE SOURCES TO DETERMINE WHICH OF THE BAD DEBT ACCOUNTS COULD HAVE BEEN ELIGIBLE FOR CHARITY CARE BUT THE PATIENT HAD NOT APPLIED. THIS PATIENT FINANCIAL DATA HAS BEEN FOUND TO BE REASONABLY ACCURATE BASED ON COMPARISONS TO THE PATIENTS' ACTUAL INCOME PER SUPPORTING DOCUMENTATION PROVIDED FOR THOSE THAT HAVE APPLIED FOR CHARITY CARE. AN OVERALL COST TO CHARGE RATIO WAS THEN APPLIED TO THIS AMOUNT TO ARRIVE AT AN EXPENSE FIGURE. PART III, LINE 8: THE MEDICARE COSTS WERE DETERMINED BASED ON THE HOSPITALS' COST ACCOUNTING SYSTEM ALLOCATION OF COSTS BASED ON THE SERVICES RENDERED. PART III, LINE 9B: PATIENTS ARE NOTIFIED OF OUR CHARITY CARE POLICY IN A VARIETY OF WAYS. THERE ARE POSTERS INFORMING PATIENTS OF OUR CHARITY CARE POLICY AT ALL THE REGISTRATION SITES. IN ADDITION, THE PATIENT ACCOUNT STATEMENTS CONTAIN LANGUAGE THAT INDICATES THERE IS FINANCIAL AID AVAILABLE FOR QUALIFYING INDIVIDUALS. PATIENTS THAT APPLY FOR FINANCIAL ASSISTANCE AND PROVIDE ALL THE NECESSARY DOCUMENTATION REQUIREMENTS ARE NOTIFIED WITHIN TWO WEEKS OF THE HOSPITALS' DECISION. WHEN THE APPROVAL IS DETERMINED, THE APPROPRIATE DISCOUNT IS POSTED TO THE PATIENT'S ACCOUNT IMMEDIATELY. THE FINANCIAL ASSISTANCE DISCOUNT WILL BE APPLIED TO SERVICES FOR THE PREVIOUS EIGHTEEN MONTHS AND SUBSEQUENT SIX MONTHS. APPLICANTS APPROVED FOR ONLY PARTIAL DISCOUNT WILL BE REQUIRED TO MAKE REASONABLE PAYMENT ARRANGEMENTS ON THEIR BALANCE IN ACCORDANCE TO THE HOSPITAL'S CREDIT AND COLLECTION POLICY. THIS POLICY DOES PERMIT THE USE OF BOTH INTERNAL COLLECTION STAFF AND EXTERNAL COLLECTION AGENCIES WHO WILL ENGAGE IN STANDARD ACCEPTABLE BUSINESS PRACTICES WHICH INCLUDE PHONE CALLS, MAILINGS AND THE REPORTING OF UNPAID DEBT TO THE CREDIT REPORTING AGENCIES; BUT UNDER NO CIRCUMSTANCES WILL THE HOSPITALS OR ITS CONTRACTED COLLECTION AGENCY ADOPT "EXTRAORDINARY COLLECTION ACTIONS" THAT ENTAIL LEGAL COURSE OF ACTION OR JUDICIAL PROCESS SUCH AS LAWSUITS OR LIENS. PART VI, LINE 2: AS A CO-SPONSOR OF THE 2007 COMMUNITY NEEDS ASSESSMENT CONDUCTED BY THE DREXEL UNIVERSITY SCHOOL OF PUBLIC HEALTH, PINNACLE HEALTH HOSPITALS USES EVIDENCE-BASED FINDINGS TO OUTLINE COMMUNITY HEALTH IMPROVEMENT STRATEGIES. THIS "POINT-IN-TIME" STUDY NOTED, "THE HEALTH STATUS OF DAUPHIN COUNTY'S RESIDENTS IS POOR AND RANKS AMONG THE FIVE WORST IN PENNSYLVANIA FOR HIV/AIDS, SEXUALLY TRANSMITTED DISEASES, AND LOW BIRTH WEIGHT." SPECIFICALLY, SEVEN KEY NEEDS FOR ENHANCING PUBLIC HEALTH AND IMPROVING ACCESS TO PERSONAL HEALTH SERVICES WERE CITED: MATERNAL AND CHILD HEALTH; SEXUALLY TRANSMITTED DISEASES AND HIV/AIDS; EMERGENCY PREPAREDNESS; MEDICAL CARE AND SERVICES; DENTAL CARE; CHRONIC DISEASE PREVENTION AND MANAGEMENT; AND BEHAVIORAL HEALTH. THE STUDY ALSO IDENTIFIED THE LACK OF A SINGLE, WELL-KNOWN AND ACCEPTED PLACE FOR DAUPHIN COUNTY RESIDENTS TO GO FOR PUBLIC HEALTH SERVICES AND INFORMATION. PINNACLE HEALTH HOSPITALS HAS USED THE RESULTS OF THIS STUDY TO DEVELOP A COMMUNITY HEALTH STRATEGY THAT IS BROAD IN SCOPE AND FOCUSED ON OUTCOMES THAT MEET THE SPECIFIC NEEDS OF A DIVERSE POPULATION.PINNACLE HEALTH HOSPITALS ACCESSES VARIOUS STATE AND NATIONAL SOURCES FOR SECONDARY DATA, INCLUDING THE PENNSYLVANIA DEPARTMENT OF HEALTH EPIQMS SYSTEM (EPIDEMIOLOGIC QUERY AND MAPPING SYSTEM), AN INTERACTIVE HEALTH STATISTICS WEB TOOL WHERE YOU CAN CREATE CUSTOMIZED DATA TABLES, CHARTS, MAPS, AND COUNTY ASSESSMENTS/PROFILES FOR THE FOLLOWING DATASETS: -BEHAVIORAL RISK FACTOR SURVEILLANCE SYSTEM (BRFSS)-BIRTHS-CANCER INCIDENCE -COMMUNICABLE DISEASES (OTHER THAN STDS) -DEATHS -EMERGENCY MEDICAL SERVICES -ENVIRONMENTAL PUBLIC HEALTH TRACKING NETWORK (EPHTN) -INFANT DEATHS -POPULATION -SEXUALLY TRANSMITTED DISEASES (STDS) -TEEN PREGNANCIES (REPORTED)PINNACLE HEALTH HOSPITALS UTILIZES THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES' COMMUNITY HEALTH STATUS INDICATORS WHICH PROVIDES DATA THAT CAN BE COMPARED TO PEER COUNTIES ON A STATE AND NATIONAL LEVEL. IN ADDITION, HEALTHY PEOPLE 2020 IDENTIFIES NEARLY 600 OBJECTIVES WITH MORE THAN 1,300 MEASURES TO IMPROVE THE HEALTH OF ALL AMERICANS. TO MONITOR PROGRESS TOWARD ACHIEVING INDIVIDUAL OBJECTIVES, HEALTHY PEOPLE RELIES ON DATA SOURCES DERIVED FROM A NATIONAL CENSUS OF EVENTS LIKE THE NATIONAL VITAL STATISTICS SYSTEM AND NATIONALLY REPRESENTATIVE SAMPLE SURVEYS LIKE THE NATIONAL HEALTH INTERVIEW SURVEY. PINNACLE SEARCHES THE HEALTH INDICATORS WAREHOUSE FOR DATA RELATED TO HEALTHY PEOPLE 2020 OBJECTIVES DEVELOPED BY THE NATIONAL CENTER FOR HEALTH STATISTICS. PINNACLE HEALTH HOSPITALS USES DIRECT PATIENT FEEDBACK, OUTREACH EFFORTS, AND COMMUNITY BASED PARTNERSHIPS TO DETERMINE THE HEALTH CARE NEEDS IN CUMBERLAND, DAUPHIN, AND PERRY COUNTIES. THE PRIMARY DATA SOURCES FOR ASSESSING THE UNMET NEEDS OF THE COMMUNITY ARE DIRECT PATIENT CONTACT, QUESTIONNAIRES, AND OBSERVATION OF THE PATIENT POPULATION IN PINNACLE'S FOUR CAMPUSES (COMMUNITY, CUMBERLAND, HARRISBURG AND POLYCLINIC), FAMILYCARE PHYSICIAN PRACTICES, HOME HEALTH AND HOSPICE SERVICES, OUTPATIENT SURGERY AND IMAGING CENTERS. THROUGH VARIOUS OUTREACH PROGRAMS INCLUDING HEALTH FAIRS, SCREENINGS, LECTURES, AND EDUCATION SESSIONS, DATA IS COLLECTED AND INCLUDED IN ASSESSING THE OVERALL UNMET NEEDS OF THE COMMUNITY. PART VI, LINE 3: PATIENTS ARE INFORMED OF AVAILABLE ASSISTANCE IN NUMEROUS WAYS. SIGNAGE IS POSTED AT ALL THE REGISTRATION SITES INDICATING TO THE PATIENTS THAT FINANCIAL ASSISTANCE IS AVAILABLE. ALL UN-INSURED PATIENTS WHO ARE SCHEDULED FOR HIGH DOLLAR TESTS AND SURGERIES ARE CONTACTED BY ONE OF OUR FINANCIAL COUNSELORS TO DISCUSS THE FINANCIAL ASSISTANCE OPTIONS AVAILABLE TO THEM. IN ADDITION, ALL INPATIENTS WHO ARE RESIDENTS OF PENNSYLVANIA ARE PROVIDED PERSONAL ASSISTANCE IN THE COMPLETION OF THE MEDICAL ASSISTANCE APPLICATION. AS PART OF THE DISCHARGE PROCESS IN THE EMERGENCY DEPARTMENT, ALL UNINSURED PATIENTS ARE SCREENED FOR CHARITY CARE ELIGIBILITY UNDER THE HOSPITAL POLICY. LASTLY, INFORMATION ABOUT FINANCIAL ASSISTANCE IS INCLUDED ON THE PATIENT BILLING STATEMENTS. PROGRAMS DISCUSSED INCLUDE THE PENNSYLVANIA STATE MEDICAID PROGRAM (MEDICAL ASSISTANCE), HOSPITAL CHARITY CARE PROGRAM, AND FUNDS AVAILABLE THROUGH THE HOSPITAL ENDOWMENT. PART VI, LINE 4: PINNACLE HEALTH HOSPITALS' (PHH) PRIMARY SERVICE AREA (PSA) CONSISTS OF 53 CONTIGUOUS ZIP CODES IN PORTIONS OF 6 COUNTIES IN THE GREATER HARRISBURG AREA OF SOUTH CENTRAL PENNSYLVANIA. THE SIX COUNTIES INCLUDE DAUPHIN, CUMBERLAND, PERRY, YORK, LANCASTER AND LEBANON. THE COMMUNITY CAN BE DESCRIBED AS A MIX OF RURAL IN THE OUTLYING COUNTIES, SUBURBAN AND URBAN AREA OF THE CITY OF HARRISBURG. THE PSA ACCOUNTS FOR APPROXIMATELY 85 PERCENT OF THE OVERALL ACUTE PATIENT DISCHARGES OF THE HOSPITALS. PINNACLE HEALTH HOSPITALS COMPETES WITH THREE ACUTE CARE HOSPITALS AND TWO REHABILITATION HOSPITALS WITHIN THE PSA. ONE OF THE ACUTE CARE HOSPITALS IS A FOR PROFIT HOSPITAL OWNED BY A LARGE PUBLICLY REGISTERED HEALTH CARE SYSTEM. THE SECOND COMPETITOR IS A MEDICAL ACADEMIC HOSPITAL AFFILIATED WITH A LARGE STATE FUNDED PUBLIC UNIVERSITY AND THE FINAL COMPETITOR IS A SMALLER, NON-TEACHING NOT-FOR-PROFIT HOSPITAL. THE FIRST REHABILITATION HOSPITAL IS OWNED AND OPERATED BY A LARGE PUBLICLY REGISTERED CORPORATION AND THE OTHER REHABILITATION HOSPITAL IS OPERATED BY THE MEDICAL ACADEMIC HOSPITAL OF THE LARGE STATE FUNDED PUBLIC UNIVERSITY ALREADY MENTIONED. THE PSA IN WHICH PHH SERVES HAS 12 CENSUS TRACTS WHICH HAVE BEEN IDENTIFIED BY THE U.S. HEALTH RESOURCES AND SERVICES ADMINISTRATION AS MEDICALLY UNDERSERVED AREAS (MUAS). IN ADDITION, IMMEDIATELY ADJACENT TO THE WEST OF THE PSA ARE AN ADDITIONAL 5 MINOR CIVIL DIVISIONS WHICH HAVE BEEN IDENTIFIED AS MUAS. PHH IS A SIGNIFICANT PROVIDER OF HEALTHCARE SERVICES TO PATIENTS IN THE AREAS ADJACENT TO ITS PSA. PHH IS THE PRIMARY PROVIDER FOR THE 49,000 PEOPLE LIVING IN THE CITY OF HARRISBURG. THE EMERGENCY DEPARTMENT OF THE HOSPITAL IS THE FIRST OPTION FOR A LARGE MAJORITY OF THE CITY RESIDENTS. IN ADDITION, THE HOSPITAL AND RELATED ORGANIZATIONS OPERATE ADULT, CHILDREN, WOMAN AND TEEN PRIMARY CARE CLINICS THAT MAINLY SERVE THE CITY'S MEDICAID POPULATION. OTHER DEMOGRAPHIC STATISTICS OF HARRISBURG INCLUDE 27.5 PERCENT OF THE POPULATION IS UNDER THE AGE OF 18, 41.6 PERCENT HAVE HOUSEHOLD INCOMES OF LESS THAN $25,000, 45 PERCENT OF CHILDREN LIVE BELOW THE FEDERAL POVERTY LINE, 77 PERCENT OF THE POPULATION IS COMPRISED OF ETHNICALLY DIVERSE MINORITY POPULATIONS AND FINALLY 22 PERCENT OF THE POPULATION IS ESTIMATED TO HAVE NO HEALTH INSURANCE AND 29 PERCENT HAVE MEDICAID INSURANCE. THE HOSPITAL'S MARKET SHARE OF THE CITY OF HARRISBURG'S MEDICAID POPULATION IS APPROXIMATELY 77.5 PERCENT. PHH IS ALSO THE MAJOR PROVIDER OF HEALTH CARE SERVICES FOR ALL OF DAUPHIN COUNTY, WHERE THE CITY OF HARRISBURG IS LOCATED, AND ACCORDING TO "COUNTY HEALTH RANKINGS," DAUPHIN COUNTY RANKS 38TH OUT OF A TOTAL OF 67 PENNSYLVANIA COUNTIES IN AN ASSESSMENT OF THE OVERALL HEALTH OF EACH COUNTY. THE PA DEPARTMENT OF HEALTH REPORTS THAT DAUPHIN COUNTY RANKS ABOVE THE STATE OF PA AS A WHOLE IN THE FOLLOWING CATEGORIES: LOW BIRTH WEIGHT, BIRTHS TO MOTHERS UNDER THE AGE OF 18, MOTHERS RECEIVING NO PRENATAL CARE IN THE FIRST TRIMESTER, BREAST CANCER INCIDENCE, HEART DISEASE AND DIABETES. PART VI, LINE 6: PINNACLE HEALTH HOSPITALS MAINTAINS AN ACTIVE ROLE IN THE COMMUNITY IN WHICH IT SERVES. THE ROLE IS REFLECTIVE IN ITS BOARD OF DIRECTORS WHOSE COMPOSITION IS GREATER THAN 80 PERCENT INDEPENDENT COMMUNITY BASED LEADERS. PHH HAS AN OPEN MEDICAL STAFF. CURRENTLY MORE THAN 85% OF THE MEDICAL STAFF OF THE HOSPITAL IS COMMUNITY BASED. OTHER COMMUNITY BASED MEDICAL STAFF WHICH SERVE AT THE HOSPITAL INCLUDE NURSE PRACTITIONERS, PHYSICIAN ASSISTANTS, PSYCHOLOGISTS AND NURSE MIDWIVES. THE HOSPITAL ALSO PROVIDES TRAINING FOR BOTH MEDICAL STUDENTS AND RESIDENTS IN A NUMBER OF SPECIALTIES. THE HOSPITAL HAS TWO ACCREDITATION COUNCIL FOR GRADUATE MEDICAL EDUCATION (ACGME) ACCREDITED RESIDENCY PROGRAMS AS WELL AS FOUR AOA ACCREDITED TEACHING PROGRAMS. THE HOSPITAL USES ITS SURPLUS FUNDS TO RENOVATE AND EXPAND PATIENT CARE AREAS IN ADDITION TO PROVIDING PATIENT SERVICES WHICH MAY NOT BE CURRENTLY AVAILABLE IN THE COMMUNITY. RECENT PROJECTS INCLUDE A $34 MILLION PROJECT TO RENOVATE AND EXPAND THE EMERGENCY DEPARTMENT AT THE HARRISBURG HOSPITAL DUE TO THE IMPORTANCE OF THIS AREA IN THE HARRISBURG COMMUNITY, AND A GREATER THAN $32 MILLION DOLLAR PROJECT TO CREATE EXPANDED ONCOLOGY SERVICES TO THE GREATER HARRISBURG COMMUNITY. ADDITIONAL PROJECTS INCLUDE MODERNIZING AND UPDATING EXISTING LOCATIONS WITHIN HOSPITAL TO MEET THE PATIENT NEEDS IN THE COMMUNITY WE SERVE AND EXPANDING THE UTILIZATION OF ELECTRONIC MEDICAL RECORDS BOTH WITHIN PINNACLE HEALTH SYSTEM AS WELL AS WITHIN THE COMMUNITY BASED PHYSICIAN PRACTICES OF OUR AREA.AS ONE OF THE LEADING HOSPITALS IN SOUTH CENTRAL PENNSYLVANIA, PINNACLE HEALTH HOSPITALS STRIVES TO STRENGTHEN ACCESS TO CARE AS WE PROVIDE A CONTINUUM OF COMMUNITY BASED SERVICES THAT EXTEND BEYOND THE ROLE OF AN ACUTE CARE HOSPITAL - FROM IN HOME PRENATAL CARE FOR FIRST TIME MOTHERS TO A LEAD AGENCY ON A REGIONAL DISASTER PREPAREDNESS TASK FORCE. TO BRING FOCUS TO OUR MISSION, PINNACLE HEALTH HOSPITALS IS COMMITTED TO SIX STRATEGIC PILLARS: COMMITMENT TO PEOPLE, SERVICE, QUALITY, GROWTH, COMMUNITY, AND FINANCE. GUIDED BY THESE PILLARS, THE FIVE INITIATIVES HIGHLIGHTED BELOW ARE KEY EXAMPLES OF OUR COMMITMENT TO BEING A TRUSTED PLACE FOR OUR COMMUNITY TO GO FOR ACCESS TO PUBLIC HEALTH SERVICES AND INFORMATION: -NURSE FAMILY PARTNERSHIP (NFP) - WITH A FOCUS ON PEOPLE AND A DESIRE TO MAKE THE HEALTHCARE SYSTEM EASIER TO NAVIGATE, WE OFFER THIS VOLUNTARY PREVENTION PROGRAM THAT PROVIDES NURSE HOME VISITATION SERVICES TO LOW INCOME, FIRST-TIME MOTHERS. THIS NATIONALLY RENOWNED, EVIDENCE-BASED COMMUNITY HEALTH CURRICULUM TRANSFORMS THE LIVES OF VULNERABLE FAMILIES.-DAUPHIN COUNTY HEALTH IMPROVEMENT PARTNERSHIP (DCHIP) - WITH A FOCUS ON CREATING A COHESIVE SYSTEM OF PUBLIC HEALTH SERVICES, WE CONVENE A TEAM OF MULTI-SECTOR, COMMUNITY BASED PARTNERS FROM HEALTHCARE, HUMAN SERVICE, GOVERNMENT, EDUCATION, FAITH AND PAYOR COMMUNITIES. MEMBERS ARE COMMITTED TO WORKING COLLABORATIVELY TO IMPROVE HEALTH, REDUCE DISPARITIES, AND ADDRESS THE QUALITY OF LIFE OF COMMUNITY RESIDENTS.-RESOURCE EDUCATION AND COMPREHENSIVE CARE FOR HIV (REACCH) PROGRAM - WITH A FOCUS ON ACCESS TO QUALITY CARE FOR VULNERABLE MEMBERS OF THE COMMUNITY WE EMPHASIZE TREATMENT AND PREVENTION OF THE SPREAD OF HIV FOR WOMEN AND CHILDREN. REACCH INCLUDES DIAGNOSTIC, THERAPEUTIC AND SUPPORTIVE SERVICES SUCH AS EDUCATION ABOUT HIV DISEASE AND TRANSMISSION, AS WELL AS TREATMENT RECOMMENDATIONS AND HOW TO ACCESS THEM.-IMPROVING THE HEALTH OF OUR YOUTH PROGRAM - WITH A FOCUS ON LONG RANGE SUSTAINABLE GROWTH WITHIN OUR COMMUNITIES, IT IS EVIDENT THAT THE HEALTH OF OUR CHILDREN IS A FOCAL POINT. A MULTI STEP, LONG TERM APPROACH TO PARTNERING WITH SCHOOLS, BUSINESSES, AND PAYORS TO EDUCATE STUDENTS AND FAMILIES ON HEALTHY FOOD CHOICES AND PHYSICAL ACTIVITY ALTERNATIVES ENSURES SUSTAINABLE BEHAVIOR CHANGE. -EMERGENCY MANAGEMENT PLAN-SOUTH CENTRAL TASK FORCE - WITH A FOCUS ON PROVIDING LEADERSHIP IN IMPROVING THE OVERALL HEALTH OF OUR COMMUNITY, OUR EMERGENCY MANAGEMENT TEAM CREATES AN ENVIRONMENT THAT SUPPORTS ACCESSIBILITY AND CONSIDERATION OF BASIC FAMILY NEEDS INCLUDING SAFETY. THE TASK FORCE COLLABORATES AND COORDINATES BOTH PUBLIC AND PRIVATE SECTOR RESOURCES FOR REGIONAL SOLUTIONS THAT PROVIDE SUPPORT TO COMMUNITIES WHEN EVENTS EXCEED THEIR CAPABILITIES. PART VI, LINE 7: PINNACLE HEALTH HOSPITALS IS PART OF THE PINNACLE HEALTH SYSTEM, A FULLY INTEGRATED, AFFILIATED HEALTH CARE SYSTEM. THE SYSTEM IS COMPRISED OF SEVEN WHOLLY OWNED ENTITIES AS WELL AS A VARIETY OF AFFILIATED JOINT VENTURES. THE ORGANIZATION'S MISSION IS TO MAINTAIN AND IMPROVE THE HEALTH AND QUALITY OF LIFE FOR EVERYONE IN CENTRAL PENNSYLVANIA. PINNACLE HEALTH SYSTEM IS ENGAGED IN AND CONDUCTS CHARITABLE, EDUCATIONAL, AND SCIENTIFIC ACTIVITIES THROUGH THE SUPPORT AND BENEFIT OF PINNACLE HEALTH FOUNDATION, AND PROVIDES MANAGEMENT AND CONSULTATIVE SERVICES TO AFFILIATED ENTITIES. PINNACLE HEALTH FOUNDATION ENGAGES IN INVESTMENT AND FUNDRAISING ACTIVITIES FOR THE BENEFIT OF THE RELATED ORGANIZATIONS. PINNACLE HEALTH HOMECARE IS DEDICATED TO PROVIDING HIGH QUALITY, HOLISTIC HOME CARE SERVICES TO HOMEBOUND INDIVIDUALS OF ALL AGES WITH INTERMITTENT SKILLED NEEDS. PINNACLE HEALTH HOSPICE IS DEDICATED TO PROVIDING COMPREHENSIVE, INDIVIDUALIZED, QUALITY CARE TO TERMINALLY ILL ADULTS, CHILDREN AND THEIR FAMILIES REGARDLESS OF PERSONAL OR FINANCIAL CIRCUMSTANCES. PINNACLE HEALTH MEDICAL SERVICES IS PRIMARILY ENGAGED IN THE PROVISION OF PHYSICIAN SERVICES TO SUPPORT AND ENHANCE THE SERVICES WITHIN PINNACLE HEALTH HOSPITALS AND PINNACLE HEALTH SYSTEM. PINNACLE HEALTH CARDIOVASCULAR INSTITUTE IS ENGAGED IN PROVIDING COMPREHENSIVE CARDIAC CARE, INCLUDING LEADING EDGE TECHNOLOGICAL ADVANCES IN ORDER TO PROVIDE THE BEST CLINICAL OUTCOMES TO THE COMMUNITY. COMMUNITY LIFE TEAM IS ENGAGED IN PROVIDING COMMUNITY BASED, EFFICIENT AND COST EFFECTIVE MEDICAL TRANSPORT SERVICES, PRE-HOSPITAL EMERGENCY MEDICAL SERVICES FOR THE RESIDENTS AND COMMUNITIES OF THE CENTRAL PENNSYLVANIA REGION. THE PINNACLE HEALTH SYSTEM AND ITS AFFILIATES ARE ACTIVELY INVOLVED IN THE CENTRAL PENNSYLVANIA REGION THROUGH VARIOUS CHARITY AND COMMUNITY BENEFIT ACTIVITIES. THE OTHER ENTITIES WITHIN THE SYSTEM, NOT INCLUDING THE HOSPITAL, PROVIDED $168,784 OF CHARITY CARE. THE SYSTEM ENTITIES ARE ALSO ACTIVELY ENGAGED IN A VARIETY OF COMMUNITY BENEFIT ACTIVITIES. THE FOLLOWING LISTS THE VARIETY OF COMMUNITY BENEFITS PERFORMED WITHIN THE SYSTEM, THAT HAD THEY BEEN PERFORMED AT THE HOSPITAL LEVEL, WOULD HAVE BEEN INCLUDABLE ON SCHEDULE H. -PINNACLE HEALTH SYSTEM - $1,581,263 IN COMMUNITY HEALTH IMPROVEMENT SERVICES, HEALTH PROFESSIONS EDUCATION, COMMUNITY BENEFIT OPERATIONS AND CASH AND IN-KIND CONTRIBUTIONS-PINNACLE HEALTH MEDICAL SERVICES - $1,313,104 IN COMMUNITY HEALTH IMPROVEMENT SERVICES, COMMUNITY BASED CLINICAL SERVICES AND HEALTH CARE SUPPORT SERVICES-COMMUNITY LIFE TEAM - $207,569 IN SUBSIDIZED HEALTH SERVICES-PINNACLE HEALTH FOUNDATION - $3,562 IN COMMUNITY BENEFIT OPERATIONS AND FINANCIAL CONTRIBUTIONSTHE ABOVE COMMUNITY BENEFIT ACTIVITIES WOULD HAVE CONTRIBUTED AN ADDITIONAL 0.57% OF BENEFIT PROVIDED TO THE CENTRAL PENNSYLVANIA COMMUNITY HAD THEY BEEN REPORTABLE BY THE PINNACLE HEALTH HOSPITAL. OTHER COMMUNITY BENEFIT ACTIVITIES PROVIDED BY PINNACLE HEALTH SYSTEM WHICH ARE NOT DESCRIBED ABOVE ARE URBAN BASED CLINICS SERVING MOSTLY LOW INCOME, UNDERINSURED PATIENTS, URGENT CARE CENTERS THROUGHOUT THE SERVICE AREA, SEVERAL JOINT VENTURES WITH PHYSICIANS FOR AMBULATORY SURGERY PROCEDURES AND A BEREAVEMENT CAMP FOR CHILDREN AND TEENS. REPORTS FILED WITH STATES PART VI, LINE 7 PA X 1 1 X X X X X 1 1 0 1 1 1 1 1 0 PHILIP GUARANESCHELLI 0 361067 0 137406 0 55047 0 13813 0 45843 0 613176 0 0 CHRISTOPHER P MARKLEY ESQ 0 272739 0 24755 0 21957 0 14162 0 34099 0 367712 0 0 RICHARD C SENECA ESQ 269851 0 0 0 0 0 0 0 0 0 269851 0 0 0 WILLIAM H PUGH 0 308294 0 37289 0 25253 0 13675 0 30159 0 414670 0 0 KIM KELLY 484249 0 0 0 6356 0 14531 0 17880 0 523016 0 0 0 WENDY BIEDRZYCKI 368855 0 0 0 258 0 11226 0 12385 0 392724 0 0 0 EDWARD HILDREW 229710 0 12086 0 106784 0 32931 0 25348 0 406859 0 0 0 ERIC KRIEG 225930 0 8142 0 85983 0 28331 0 25348 0 373734 0 0 0 JULIAN GUTIERREZ 193242 0 10303 0 149283 0 14497 0 23794 0 391119 0 0 0 ROGER LONGENDERFER MD 0 588568 0 0 0 2959028 0 12340 0 32735 0 3592671 0 1058719 PART I, LINE 1A ROGER LONGENDERFER, M.D., A FORMER PRESIDENT AND CEO, RECEIVED A REIMBURSEMENT FOR PERSONAL FINANCIAL SERVICES. THE REIMBURSEMENT WAS INCLUDED IN HIS TAXABLE COMPENSATION. PART I, LINES 4A-B 4A) ROGER LONGENDERFER, M.D., A FORMER PRESIDENT AND CEO, WAS PAID SEVERANCE IN THE FORM OF SALARY AND BENEFITS TOTALING $903,338 IN 2010 AS PART OF HIS RETIREMENT PACKAGE. 4B) ROGER LONGENDERFER, M.D., A FORMER PRESIDENT AND CEO, WAS COVERED BY A 457(F) SUPPLEMENTAL RETIREMENT AGREEMENT (SERP) WHICH WAS PAID OUT TO HIM IN 2010 TOTALING $2,689,333. SUPPLEMENTAL INFORMATION PART III PART I, LINES 5-7: THE PINNACLE HEALTH SYSTEM MANAGEMENT INCENTIVE PLAN WAS CREATED FOR THE PURPOSE OF FURTHERING THE CHARITABLE MISSION OF PINNACLE HEALTH SYSTEM BY PROMOTING EFFECTIVE MANAGEMENT OF OPERATIONS, QUALITY OF CARE AND SERVICE AND WISE USE OF RESOURCES IN MEETING COMMUNITY NEEDS. THE PLAN IS ADMINISTERED BY THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS WHICH HAS THE SOLE DISCRETIONARY AUTHORITY FOR GOVERNING THE PLAN, INTERPRETING ITS PROVISIONS, DECIDING WHO WILL PARTICIPATE, DEFINING THE INCENTIVE OPPORTUNITY AND ESTABLISHING PERFORMANCE MEASURES AND GOALS. DURING FISCAL YEAR 2011, CERTAIN OFFICERS AND OTHER EXECUTIVE MANAGEMENT OF PINNACLE HEALTH SYSTEM PARTICIPATED IN THE PLAN, AND THE PERFORMANCE MEASURES AND GOALS FOR FISCAL YEAR 2011 HAD A WEIGHTING OF 30 PER CENT FOR INDIVIDUAL PERSONAL PERFORMANCE EVALUATION MEASURES AND 70 PER CENT SYSTEM-WIDE STRATEGIC GOALS AND MEASURES. THE SYSTEM-WIDE STRATEGIC GOALS AND MEASURES ARE FURTHER BROKEN DOWN INTO 6 CATEGORIES WHICH APPLY TO ALL EXECUTIVE MANAGEMENT WITHIN PINNACLE HEALTH SYSTEM. THE 6 CATEGORIES ARE FURTHER BROKEN INTO ADDITIONAL MEASURES THAT SUPPORT THE BROADER CATEGORY. FINALLY, EACH SEPARATE MEASURE WITHIN A CATEGORY INCLUDES PERFORMANCE LEVEL GOALS OF THRESHOLD OR BUDGET, TARGET AND OPTIMUM LEVELS. FOR THE FISCAL YEAR 2011 PLAN YEAR, THE PLAN CONTAINED A SYSTEM GROWTH GOAL WITH A WEIGHTING OF 6 PER CENT IF TOTAL OPERATING REVENUE EXCEEDED THE BUDGETED TOTAL OPERATING REVENUE. HOWEVER, THE PLAN AWARD WAS NOT CONTINGENT ON THIS REVENUE GOAL. THE REVENUE GOAL WAS ONE COMPONENT OF THE ENTIRE PLAN PERFORMANCE MEASURES. FOR THE FISCAL YEAR 2011 PLAN YEAR, THE PLAN CONTAINED A SYSTEM FINANCE GOAL WITH A WEIGHTING OF 5 PER CENT IF THE OPERATING MARGIN OF THE ENTIRE SYSTEM EXCEEDED THE BUDGETED OPERATING MARGIN. HOWEVER, THE PLAN AWARD WAS NOT CONTINGENT ON THIS OPERATING MARGIN GOAL. THE OPERATING MARGIN GOAL WAS ONE COMPONENT OF THE ENTIRE PLAN PERFORMANCE MEASURES. DAUPHIN COUNTY GENERAL AUTHORITY 232336949 23825ECL6 2009-06-24 187538449 REFUND SERIES 2004, 2005 & 2007, SWAP TERMINATION, CAPITAL PROJECTS 0 0 0 DAUPHIN COUNTY GENERAL AUTHORITY 232336949 23825ECY8 2011-06-28 100000000 REFUND 2009B NOTES AND CAPITAL PROJECTS 0 0 0 7885000 187538449 9493675 168307000 2962259 6775515 2009 1 0 1 1 100000000 70000000 278678 15482773 14238549 1 0 0 1 0 0 1 0 1 0.00000 0.00500 0.00500 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 1 CITIGROUP 30.000000000000 0 0 0 0 0 0 1 0 0 0 0 MOFFITT HEART & VASCULAR GROUP BOARD DIRECTOR FELIX GUTIERREZ, MD IS PRESIDENT OF MOFFITT HEART & VASCULAR 319353 SEE PART V - CARDIOLOGY SERVICES AGREEMENT WITH MEDICAL GROUP IN WHICH DR. GUTIERREZ IS AN OWNER. PAYMENT WAS MADE TO THE GROUP, NOT DR. GUTIERREZ DIRECTLY. 0 FORM 990, PART V, LINE 1: PINNACLE HEALTH SYSTEM, THE PARENT ENTITY OF A GROUP OF TAX-EXEMPT ORGANIZATIONS, IS THE COMMON REPORTING AGENT FOR THE GROUP AND FILES ALL 1099 FORMS FOR PINNACLE HEALTH HOSPITALS. FORM 990, PART VI, SECTION B, LINE 11 THE AUTHORITY AND RESPONSIBILITY FOR REVIEW OF THE FORM 990 FOR PINNACLE HEALTH SYSTEM AND SUBSIDIARIES IS DELEGATED TO THE FINANCE AND AUDIT COMMITTEE OF THE PINNACLE HEALTH SYSTEM BOARD. IN ORDER TO ACCOMPLISH THIS, ALL MEMBERS OF THE FINANCE AND AUDIT COMMITTEE ARE PROVIDED WITH A REASONABLE OPPORTUNITY TO REVIEW AND COMMENT TO EXECUTIVE LEADERSHIP ON THE IRS FORMS 990 OF THE PINNACLE HEALTH SYSTEM AND ITS SUBSIDIARIES, INCLUDING PINNACLE HEALTH HOSPITALS, PINNACLE HEALTH MEDICAL SERVICES, PINNACLE HEALTH FOUNDATION, PINNACLE HEALTH HOME CARE & HOSPICE AND COMMUNITY LIFE TEAM BEFORE THEY ARE FILED WITH THE INTERNAL REVENUE SERVICE. IN ADDITION, EACH MEMBER OF EACH RESPECTIVE BOARD OF DIRECTORS WILL BE GIVEN ACCESS TO VIEW THEIR INDIVIDUAL FORM 990 VIA A SHARED, PASSWORD-PROTECTED WEBSITE. FORM 990, PART VI, SECTION B, LINE 12C IN THE PERFORMANCE OF THEIR DUTIES TO PINNACLE HEALTH SYSTEM AND SUBSIDIARIES (COLLECTIVELY REFERRED TO AS "PHS"), COVERED PERSONS SHALL SEEK TO ACT IN THE BEST INTERESTS OF PHS, AND SHALL EXERCISE GOOD FAITH, LOYALTY, DILIGENCE AND HONESTY. A COVERED PERSON IS ANY INDIVIDUAL WHO SERVES IN A FIDUCIARY CAPACITY TO, OR WHO HAS LEGAL AUTHORITY TO REPRESENT OR OBLIGATE, THE PINNACLE HEALTH SYSTEM OR ANY OF ITS AFFILIATED ORGANIZATIONS INCLUDING, BUT NOT LIMITED TO, DIRECTORS, OFFICERS, EMPLOYEES, AND AGENTS. COVERED PERSONS ALSO INCLUDE A) IMMEDIATE FAMILIES (SPOUSES, CHILDREN, SIBLINGS, PARENTS, OR SPOUSE'S PARENTS), B) ANY ORGANIZATION IN WHICH THEY OR THEIR IMMEDIATE FAMILIES DIRECTLY OR INDIRECTLY I) HAVE A MATERIAL FINANCIAL OR BENEFICIAL INTEREST, OR II) SERVE AS A DIRECTOR, OFFICER, EMPLOYEE, AGENT, ATTORNEY OR SIMILAR CAPACITY. A COVERED PERSON SHALL DISCLOSE ANY BUSINESS OR PERSONAL INTERESTS OR RELATIONSHIPS WHICH MAY BE IN CONFLICT WITH THE INTERESTS OF PHS, INCLUDING, BUT NOT LIMITED TO (A) ENGAGING IN OR SEEKING TO BE ENGAGED IN (I) THE DELIVERY OF HEALTH CARE SERVICES OR (II) THE DELIVERY OF GOODS OR SERVICES TO PHS, OR (B) ANY TRANSACTION OR ARRANGEMENT WITH PHS WHICH WOULD RESULT IN BENEFIT TO COVERED PERSONS. THE GOVERNANCE COMMITTEE OF THE PHS BOARD REVIEWS ALL CONFLICT OF INTEREST STATEMENTS AND DETERMINES WHETHER EACH DIRECTOR ON THE BOARD IS INDEPENDENT. COVERED PERSONS WHO ARE DIRECTORS MUST COMPLY WITH THE PINNACLE HEALTH SYSTEM GUIDELINES FOR DETERMINING DIRECTOR INDEPENDENCE AND APPLYING DIRECTOR INDEPENDENCE REQUIREMENTS. COVERED PERSONS WITH A CONFLICT OF INTEREST SHALL NOT VOTE ON THE MATTER, AND THE PHS BOARD OR COMMITTEE MUST APPROVE, AUTHORIZE, OR RATIFY THE TRANSACTION OR ARRANGEMENT BY A MAJORITY VOTE OF THE NON-INTERESTED DIRECTORS OR COMMITTEE MEMBERS PRESENT AT A MEETING THAT HAS A QUORUM. VIOLATIONS OF THIS STATEMENT OF POLICY MAY SUBJECT COVERED PERSONS TO APPROPRIATE SANCTIONS, INCLUDING REMOVAL FROM THEIR POSITIONS WITH PHS. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE PINNACLE HEALTH SYSTEM ("PHS") BOARD OF DIRECTORS HAS THE AUTHORITY TO DEVELOP AND MAINTAIN EXECUTIVE AND PHYSICIAN COMPENSATION TO BE APPROVED BY THE PINNACLE HEALTH SYSTEM BOARD. THE COMPENSATION COMMITTEE WILL FOLLOW A DILIGENT PROCESS THAT MEETS REGULATORY REQUIREMENTS FOR A REBUTTABLE PRESUMPTION OF REASONABLENESS AND PROMOTES EFFECTIVE GOVERNANCE OF EXECUTIVE COMPENSATION, CONSISTENT WITH THE PHS'S COMPENSATION PHILOSOPHY. 1. FOLLOW A PROCESS THAT ESTABLISHES AND MAINTAINS A REBUTTABLE PRESUMPTION OF REASONABLENESS FOR ALL EXECUTIVES AND PHYSICIANS POTENTIALLY SUBJECT TO INTERMEDIATE SANCTIONS. 2. PREPARE MINUTES FOR EACH MEETING TO RECORD THE TERMS OF THE COMMITTEE'S DECISIONS AND THE PROCESS FOLLOWED IN REACHING THOSE DECISIONS. THESE MINUTES MUST INCLUDE INDICATIONS THAT THE COMMITTEE IS FOLLOWING GOOD PRACTICES IN DEALING WITH CONFLICTS OF INTEREST AND IN OBTAINING AND RELYING ON APPROPRIATE COMPARABILITY DATA ON TOTAL COMPENSATION. 3. SELECT AND DIRECTLY ENGAGE AND SUPERVISE ANY CONSULTANT HIRED BY PHS TO ADVISE THE COMMITTEE ON EXECUTIVE AND PHYSICIAN COMPENSATION. 4. PERIODICALLY EVALUATE THE APPROPRIATENESS OF THIS CHARTER AND THE EFFECTIVENESS OF THE PROCESS THE COMMITTEE USES IN GOVERNING EXECUTIVE AND PHYSICIAN COMPENSATION AND REPORT THIS EVALUATION TO THE BOARD. 5. PROVIDE THE BOARD WITH AN ANNUAL REPORT ON THE COMMITTEE'S ACTIONS. 6. MONITOR CHANGES IN LAWS AND REGULATIONS PERTAINING TO EXECUTIVE COMPENSATION AND BENEFITS TO SEE THAT PHS COMPLIES WITH THEM. 7. SEEK OUTSIDE REVIEW OF COMMITTEE OPERATIONS TO ENSURE COMPLIANCE WITH THE IRS REBUTTABLE PRESUMPTION OF REASONABLENESS. 8. REVIEW ACTUAL EXECUTIVE COMPENSATION AND BENEFITS PROVIDED TO CONFIRM CONSISTENCY WITH COMPENSATION AND BENEFITS APPROVED BY THE COMMITTEE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS OR CONFLICT OF INTEREST POLICY AVAILABLE FOR PUBLIC INSPECTION AS THIS IS NOT REQUIRED BY FEDERAL OR STATE LAW. THE ORGANIZATION INCLUDES A COPY OF ITS FINANCIAL STATEMENTS WITH THE STATE REGISTRATION FILED WITH THE PENNSYLVANIA DEPARTMENT OF STATE, BUREAU OF CHARITABLE ORGANIZATIONS. THESE DOCUMENTS ARE A MATTER OF PUBLIC RECORD AND CAN BE VIEWED AT THE BUREAU OFFICE. FORM 990, PART VII, SECTION A: THE FOLLOWING OFFICERS AND DIRECTORS HAVE WORKED AN AVERAGE OF 40 HOURS PER WEEK BETWEEN PINNACLE HEALTH HOSPITALS AND ALL RELATED ORGANIZATIONS OF PINNACLE HEALTH SYSTEM, THE PARENT COMPANY: CHRISTOPHER P. MARKLEY, ESQ. PHILIP GUARNESCHELLI WILLIAM H. PUGH RICHARD C. SENECA, ESQ. THE FOLLOWING DIRECTORS ARE ALSO DIRECTORS OF PINNACLE HEALTH SYSTEM, THE PARENT ORGANIZATION: ROBERT L. LYON GEORGE F. GRODE JOHN O. CAMPBELL SUSAN S. COHEN FELIX GUTIERREZ, MD M. RICHARD KLEIMAN DEBORAH S. MILLER DOUGLAS A. NEIDICH LARRY L. SOLLENBERGER, MD CLARENCE E. ASBURY DENNIS WALSH BONY R. DAWOOD DENISE F. HARR, MD GREGORY CAVOLI MARK KIMMEL, ESQ. DOUGLAS C. DYER STEVEN C. KUSIC KENNETH OKEN, MD MICHAEL L. FERNANDEZ, MD DIRECTOR M. RICHARD KLEIMAN IS ALSO A DIRECTOR OF PINNACLE HEALTH FOUNDATION, A RELATED ORGANIZATION. DIRECTOR DEBORAH S. MILLER IS ALSO A DIRECTOR OF PINNACLE HEALTH MEDICAL SERVICES AND PINNACLE HEALTH HOME CARE & HOSPICE, BOTH OF WHICH ARE RELATED ORGANIZATIONS. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 15,911,419. CHANGE IN ADDITIONAL MINIMUM PENSION LIABILITY 32,890,534. FUND BALANCE TRANSFER - PINNACLE HEALTH SYSTEM 1,212,800. FUND BALANCE TRANSFER - PINNACLE HEALTH MEDICAL SERVICES -37,846,128. FUND BALANCE TRANSFER - PINNACLE HEALTH HOME CARE & HOSPICE -10,712,810. FUND BALANCE TRANSFER - COMMUNITY LIFE TEAM -2,644,126. FUND BALANCE TRANSFER - PINNACLE HEALTH FOUNDATION -146,448. TOTAL TO FORM 990, PART XI, LINE 5: -1,334,759. FORM 990, PART XII, LINE 2C: PINNACLE HEALTH HOSPITALS WAS INCLUDED IN THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA FOR PINNACLE HEALTH SYSTEM AND ITS SUBSIDIARIES. THE FINANCE AND AUDIT COMMITTEE OF THE PINNACLE HEALTH SYSTEM BOARD ASSUMES THE RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT AND THE SELECTION OF THE INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED DURING THE TAX YEAR. 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