2012-05-15T18:11:46-05:00 2011-06-30 BKD LLP 2800 Post Oak Blvd Ste 3200 HOUSTON TX 77056 990 2010-07-01 741393060 KNAPP MEDICAL CENTER KNAP 9569695112 1401 EAST EIGHT ST - PO BOX 1110 WESLACO TX 78596 DINAH L GONZALEZ 2012-05-15 true Amanda Maya 7134994600 2010 2016-02-24 21:20:13Z JAMES A SUMMERSETT III 1401 E 8TH STREET WESLACO TX 78596 165119998 false X WWW.KNAPPMED.ORG X 1962 TX KNAPP MEDICAL CENTER USHERS IN NEW LIFE, MENDS BROKEN BODIES AND PROVIDES DIGNIFIED END OF LIFE CARE, ALWAYS STRIVING FOR CONSISTENT EXCELLENCE, EVERY PATIENT, EVERY TIME. (CONTINUED IN SCHEDULE O.) 9 4 1067 250 142942 -844126 184201 787898 128772979 134502671 1026497 2202348 965754 1842832 130949431 139335749 0 0 0 0 52175004 52346238 0 0 0 75280586 84690932 127455590 137037170 3493841 2298579 154642833 155190739 73574511 64860221 81068322 90330518 KNAPP MEDICAL CENTER USHERS IN NEW LIFE, MENDS BROKEN BODIES AND PROVIDES DIGNIFIED END OF LIFE CARE, ALWAYS STRIVING FOR CONSISTENT EXCELLENCE, EVERY PATIENT, EVERY TIME. TO SERVE THE HEALTHCARE NEEDS OF OUR COMMUNITY, KNAPP VALUES UNSURPASSED CARE AND CARING, APPROPRIATE CLINICALLY ADVANCED SERVICES, RESPECT AND DIGNITY TOWARD ALL, A TEAMWORK ENVIRONMENT, AND EFFICIENT USE OF RESOURCES. false false 123135251 136345503 KNAPP MEDICAL CENTER IS A NOT-FOR-PROFIT, ACUTE CARE HOSPITAL IN SOUTH TEXAS PROVIDING EXCEPTIONAL HEALTHCARE SERVICES TO RESIDENTS OF THE RIO GRANDE VALLEY. DURING THIS REPORTING PERIOD, KNAPP MEDICAL CENTER HAD 10,796 ADMISSIONS, 37,068 EMERGENCY ROOM VISITS, 1,733 DELIVERIES, AND 5,380 SURGERIES. 123135251 true true false true false false false false false true false false false true false false true false false false false false false false false true true false false true true false true true false false false false false false false false false false false false true true true true false true 242 0 true 1067 true false false false false false false false false false false X 9 4 false false false false false false false true true false false true true true true true true true true true false X DINAH L GONZALEZ CFO 9569695112 1401 E 8TH ST WESLACO TX 78596 X JAMES A SUMMERSETT 40.0 X X 1224732 0 25547 NOBLE ALLEN 1.0 X SANDRA ESQUIVEL MD 1.0 X 120000 0 0 ANABELL C CARDONA 1.0 X X RODOLFO GUERRERO MD 1.0 X 127000 0 JOHN LACKEY 1.0 X X ARMANDO MARTINEZ 1.0 X ROBERT MCALLEN 1.0 X X ALFONSO OCHOA MD 1.0 X 4469 0 BERTHA SUAREZ 1.0 X NORMA MONTALVO 1.0 X BRIAN HUMPHREYS JR 1.0 X MICHAEL SANDER MD 1.0 X RUDY SALINAS 1.0 X X ABRAHAM TANUS 1.0 X CURTIS F HALEY JR 1.0 X 271358 0 25123 DINAH GONZALEZ 40.0 X 0 0 0 RALPH KEITH KING 40.0 X 212752 20219 RUBEN GARZA 40.0 X 197687 24454 MADONNA COUGHENOUR 40.0 X 229995 21161 GARY LIGHT 40.0 X 234317 24243 EMMETT CRAIG 40.0 X 192222 14577 2814532 0 155324 50 false true false RIO GRANDE VALLEY ER PHYSICIANS PO BOX 8126 WESLACO TX 78599 PHYSICIAN 830024 WACKENHUT CORPORATION PO BOX 277469 ATLANTA GA 303847469 SECURITY 622339 NORTHSTAR ANESTHESIA 4916 OVERTON PLAZA FORT WORTH TX 76109 ANESTHESIA 794739 SPAWGLASS CONTRACTORS INC 4909 EAST GRIMES STREET SUITE 116 HARLINGEN TX 78550 CONTRACTORS 1750995 RIO GRANDE HOSPITAL SERVICES LLC 512 VICTORIA LANE SUITE 12 HARLINGEN TX 78550 CONTRACTORS 588497 38 671848 116050 787898 NET PATIENT SERVICE REV 900099 133801927 133801927 RENTAL INCOME 531390 700744 557802 142942 134502671 1627898 1627898 0 0 26357899 800 25569665 214584 788234 -213784 574450 574450 0 0 0 CAFETERIA/VENDING 722210 439864 439864 PURCHASE DISCOUNTS 900099 177646 177646 BAD DEBT RECOVERIES 900099 1096644 1096644 128678 128678 1842832 139335749 136202561 142942 2202348 0 0 0 0 2346427 2346427 0 39476346 37119325 2357021 0 1537229 1152922 384307 0 5709175 4281881 1427294 0 3277061 2457796 819265 0 133000 133000 0 313622 166452 147170 0 142104 142104 0 0 0 220106 220106 0 8152011 6845821 1306190 0 513602 471483 42119 0 2494492 2169380 325112 0 1205066 1205066 0 0 2019963 1632426 387537 0 101824 62114 39710 0 0 0 1979517 1484638 494879 0 0 8039639 6029729 2009910 0 1204350 1185444 18906 0 MEDICAL SUPPLIES 13619590 13614765 4825 0 LINEN AND LAUNDRY 550613 550466 148 0 COLLECTION EXPENSES 965716 965716 0 BAD DEBT EXPENSE 39253449 39253449 0 MAINTENANCE AND REPAIRS 2059344 2014835 44509 0 1722924 1543609 179314 0 137037170 123135251 13901919 0 610185 568867 64461010 49640498 15667484 16134079 1807519 2038671 1193102 602746 166666325 120550137 45664294 46116188 11401514 30772896 1766230 1551622 7637685 3165099 4433810 4600073 154642833 155190739 9258609 7398496 56808850 53013593 7507052 4448132 73574511 64860221 X 81068322 90330518 81068322 90330518 154642833 155190739 X 2298579 6963617 X false true true X false X false false false RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false true 15245 false false false 15245 false 1643789 1643789 69607537 43604795 26002742 2854877 2228076 626801 86857543 74717266 12140277 5702579 5702579 46116188 0 DUE TO AFFILIATES 106885 INTEREST RATE SWAP AGREEMENT 1886584 INTEREST PAYABLE 24141 EST SELF INSURANCE COSTS 2384600 OTHER LIABILITIES 45922 4448132 139335749 137037170 2298579 6554660 590177 7144837 9443416 145873451 6554660 590177 7144837 138728614 607135 607135 139335749 136430037 136430037 607133 607133 137037170 RECONCILIATION OF NET ASSETS FROM FORM 990 TO AUDITED FINANCIAL STATEMENTS SCH D, PART XI, LINE 8 CHANGE IN FV INTEREST RATE SWAP $590,177 RECONCILIATION OF AUDITED FINANCIAL STATEMENTS TO FORM 990 SCH D, PARTS XII AND XIII REVENUE ON BOOKS, NOT RETURN: CHANGE IN FV INTEREST RATE SWAP $590,177 REVENUE ON RETURN, NOT BOOKS: OTHER CLASSIFCATION DIFFERENCE $607,135 EXPENSES ON RETURN, NOT BOOKS: OTHER CLASSIFICATION DIFFERENCE $607,133 FIN 48 DISCLOSURE 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. true true true X true X true true true false true true 2893161 2893161 0.02960 23809130 7145754 16663377 0.17040 38431684 55226176 65133975 62371930 19556538 0.20000 64068 64068 0.00070 29264 29264 0.00030 93332 93332 0.00100 65227307 62371930 19649870 0.20100 174000 174000 0.00180 174000 174000 0.00180 true 9031421 2257855 45709986 36013676 9696310 X true true KMC ASC LLC AMBULATORY SURGERY 0.87000 0.13000 1 1 KNAPP MEDICAL CENTER

1401 EIGHT STREET WESLACO TX 78596

X X X KNAPP MEDICAL CENTER 1 PART III, LINE 4 THE MEDICAL CENTER REPORTS PATIENT ACCOUNTS RECEIVABLE FOR SERVICES RENDERED AT ESTIMATED NET REALIZABLE AMOUNTS FROM THIRD-PARTY PAYERS, PATIENTS AND OTHERS. THE MEDICAL CENTER PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS BASED UPON A REVIEW OF OUTSTANDING RECEIVABLES, HISTORICAL COLLECTION INFORMATION, AND EXISTING ECONOMIC CONDITIONS. AS A SERVICE TO THE PATIENT, THE MEDICAL CENTER 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. AMOUNT REPORTED ON LINE 2 IS BASED ON BAD DEBTS PER THE AUDITED FINANCIAL STATEMENTS AFTER APPLYING THE COST TO CHARGE RATIO. THE AMOUNT REPORTED IN ITEM 3 IS THE ORGANIZATION'S ESTIMATE OF THE AMOUNT OF BAD DEBT ATTRIBUTABLE TO CHARITY CARE PATIENTS ESTIMATED AT 25% OF LINE 2. PART III, LINE 8 THE MEDICAL CENTER USES COST REPORT METHODOLOGY, WHICH APPORTIONS ROUTINE COSTS BASED ON MEDICARE OR MEDICAID DAYS TO TOTAL DAYS AND APPORTIONS ANCILLARY COSTS BASED ON PROGRAM CHARGES TO TOTAL CHARGES. PART III, LINE 9B CHARITY ACCOUNTS ARE THOSE WHICH HAVE EXHAUSTED THEIR RESOURCES, OR DID NOT QUALIFY FOR THIRD-PARTY ASSISTANCE, AND/OR GUARANTOR DOES NOT HAVE RESOURCES TO PAY THE ACCOUNT. GUARANTOR MUST COMPLETE A MONTHLY BUDGET SHEET; THIS WILL ASSIST TO DETERMINE ELIGIBILITY FOR CHARITY CARE. NEEDS ASSESSMENT The health care needs of the COMMUNITIES served by Knapp Medical Center are assessed in a VARIETY of ways including direct input from the community during community events. In fiscal year 2010-2011, 400 telephone surveys were conducted. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE Patients and/or family members are informed of the charity care Program at time of registration via the patient information handbook. There are signs posted in patient access areas denoting the charity care policy. Also, the charity care policy and GUIDELINES are advertised yearly in local newspapers. COMMUNITY INFORMATION The primary service area for Knapp Medical Center encompasses an array of different towns and cities in what is considered the mid-valley area. Each community has its own distinct culture, financial and socio-economic demographics. In general, the overall area is located in eastern Hidalgo county in deep south Texas. This area is predominately Hispanic, with a high Spanish speaking population, high illiteracy rate, high prevalence of diabetes, high birth rates, and high uninsured and underinsured individuals who lack a medical home. COMMUNITY BUILDING ACTIVITIES Since Knapp Medical Center is located in a medically underserved area (MUA), it is important to recruit needed physicians to our area. During the 2010-2011 fiscal year, two internal medicine, three obstetricians/gynecologists, and one orthopedic surgeon were recruited. Emergency response is an ongoing effort on the part of the hospital. Knapp works closely with the director of Homeland security for the cities of Weslaco and Donna and partners with other area agencies (Hidalgo County, police, fire, ems, etc). To ensure that everyone understands processes and procedures in the event of a real community-wide emergency due to a natural disaster or man-made incident. Knapp participated in the dare to prepare disaster fairs that were organized by the Hidalgo County Health Department. Six fairs were held THROUGHOUT Hidalgo County to educate county residents about disaster preparation. Knapp's safety department partnered with the Weslaco police department for Knapp's two annual fairs distributing information on home safeguards during hurricanes and Halloween safety awareness for children and adults. Knapp serves as a distribution and training site for car seats provided through the safe rider program of the department of state health services to low income families who have a vehicle with a working safety belt. Eligible families must take a one hour training course to learn the proper use of the car seat to keep their child safe. During 2010-2011, Knapp distributed 64 seats and educated an additional 10 people who attended class only to learn proper car seat use. Knapp is a training center for the American Heart Assocation's Certification programs: basic life support (BLS), advanced cardiovascular life support (ACLS), and pediatric advanced life support (PALS), and is fully accredited as a provider of continuing medical education (CME) by the Texas Medical Association. The Knapp Education department, with input from the medical staff, offers a two to three day medical conference each year. This educational event is geared for primary care physicians but offers learning opportunities for specialists and other health care providers. The Knapp Wellness program offers a series of low-cost lab screenings through the outpatient department. The Knapp women's health department coordinates an annual breastfeeding conference for local WIC educators and other case managers at Knapp's conference center. And of course, Knapp offers breast feeding education through the family birthing classes. The Knapp conference center is frequently offered free to numerous governmental and non-profit organizations who need a place to provide education and skills training for health professionals and the public. Knapp works with Planned Parenthood on a project called "Bras Ending Cancer." Proceeds from this fundraiser provide vouchers for indigent women needing screening mammograms. Funding is available for follow up care but no funds were available for screenings before this program began. Planned Parenthood issues the available vouchers and provides follow up to the screenings. The volunteer program is a large part of Knapp with more than 150 adult volunteers and 45-90 teens ages 15-18 as junior volunteers. The Junior volunteer program allows teens to volunteer in several areas to explore career options. Each summer Knapp conducts a safe sitter course to train 11-15yr olds in safe child care procedures including CPR. Knapp is a member of the Weslaco Area Chamber of Commerce, Rio Grande Valley Partnership, and Mercedes Chamber of Commerce. Knapp sponsors two health fairs for the community each year and participates in many community fairs sponsored by the Chambers and other organizations to educate theiR public and provide health screenings. Since diabetes and obesity are prevalent in our area, screenings usually include body fat analysis, DISTRIBUTION of educational materials and DISPLAYS showing what five pounds of fat looks like and the amount of salt, sugar, and fat in popular foods. Additionally, we regularly put up displays showing what smoking does to the lungs, and substance abuse to the body. The largest outlet for this education is the Rio Grande Valley Livestock Show and Rodeo. A nine-day event and the Weslaco Chamber's Texas ONION Festival. The hospital also participates in leadership Mid Valley, sponsored by the Weslaco Area Chamber, sponsoring a class member and providing one of the eduational sessions on local and national healthcare services and issues. Knapp also has participated in the Texas Scholars Program with staff speaking to eighth graders encouraging them to stay in school and take challenging courses to be better prepared for jobs upon graduation. Knapp employees serve on the South Texas Community College RN and LVN advisory board, the University of Texas at Brownsville Workforce Development for Healthcare Information Technology and Regional extension centers, the Rio Grande Valley Health information exchange board, South Texas College Respiratory Therapy Advisory Board, Texas State Technical Institute Surgical Technology Advisory Board and the Health Information TECHNOLOGY Advisory Committee. The hospital is an observation and clinical site for students who are working toward becoming licensed vocational nurses, registered nurses, nurse practitioners, dietitians, medical technologists (LAB), lab technicians, transcriptionists, health information technicians, social workers, pharmacists, pharmacy technicians, physician assistants, physicians, respiratory therapists, radiologic technologists, sonographers, surgical technologists, medical office assistants, medical assistants, emergency medical technicians, physical therapy assistants, phlebotomy technicians, EKG technicians, medical billers, and occupational therapy assistants. School AFFILIATION for observation and/or clinic rotations include Galveston College, Kaplan College, HealthWebCE-Emergency Medical Technology, Laredo Community College, Nightingale's School of Nursing & Technology, RGV Careers - an institute for higher learning, South Texas College, South Texas High School for Health Professions (Med High), South Texas Vo-Tech, Texas State Technical College, University of the Incarnate Work Feik School of Pharmacy, University of Texas at Austin, University of Texas at Brownsville, University of Texas Pan American, Valley Grande Institute for Academic studies and Weslaco Independent School District. In addition, residents (already physicians) who are with the McAllen Family Medicine residency program as well as the Valley Baptist Family practice residency program do a clinical rotation at Knapp, and the city of Weslaco EMS Department participates in CLINICAL training programs at Knapp. Aurora House is a licensed special care facility which provides a residence for those needing end-of-life care. Knapp Hospice staff care for patients and families at Aurora House and also mentor nursing students from South Texas College. The hospice social worker also is a preceptor for social work students from the University of Texas Pan American. Knapp Medical Center's Annual Christmas Toy Drives provide toys and blankets for children who are in the care of child protective services. In addition, many community children in Weslaco were provided a gift as a result of the Ramiro Salas Toy Drive. Santa gave toys and candy along to children living in a low-income neighborhood outside the city limits. OTHER INFORMATION OTHER THAN THE CEO/PRESIDENT WHO SERVES AS A BOARD DIRECTOR, ALL OTHER KNAPP BOARD DIRECTORS ARE COMMUNITY MEMBERS AND SERVE ON THE BOARD AS UNPAID VOLUNTEERS. KNAPP MEDICAL CENTER HAS AN OPEN MEDICAL STAFF. KNAPP OFFERS A STRONG VOLUNTEER PROGRAM FOR TEENS, COLLEGE STUDENTS NEEDING VOLUNTEER SERVICE IN THEIR FIELD OF STUDY, AND RETIREES, WHO OFTEN REMARK THAT THEY RECEIVE MORE FROM VOLUNTEERING THAN WHAT THEY GIVE. LIST ALL STATES IN WHICH ORGANIZATION FILES A COMMUNITY BENEFIT REPORT: TEXAS AFFILIATED HEALTH CARE SYSTEM ROLES KNAPP MEDICAL CENTER (THE MEDICAL CENTER) OPERATES AN ACUTE CARE HOSPITAL LOCATED IN WESLACO, TEXAS. THE MEDICAL CENTER PRIMARILY EARNS REVENUES BY PROVIDING INPATIENT, OUTPATIENT, EMERGENCY ROOM, AND PHYSICIAN SERVICES TO PATIENTS LIVING IN THE MID-RIO GRANDE VALLEY OF SOUTH TEXAS. KNAPP MEDICAL CENTER FOUNDATION (THE FOUNDATION) IS A FUND-RAISING ORGANIZATION FOR THE MEDICAL CENTER. THE MEDICAL CENTER IS THE SOLE MEMBER OF THE FOUNDATION. ON JULY 1, 2008, THE MEDICAL CENTER PURCHASED THE WESLACO EYE SURGERY CENTER (THE CENTER), A FREESTANDING SURGERY CENTER LOCATED IN WESLACO, TEXAS. THE CENTER PROVIDES AMBULATORY SURGICAL SERVICES TO PATIENTS RESIDING IN THE WESLACO AREA. DURING 2010, THE CENTER ISSUED ADDITIONAL MEMBERSHIP UNITS TO LOCAL PHYSICIANS, WHICH RESULTED IN A REDUCTION IN THE MEDICAL CENTER'S OWNERSHIP INTEREST TO 87.03%. IN APRIL 2008, THE MEDICAL CENTER CREATED KNAPP MEDICAL GROUP (THE GROUP), A NONPROFIT ORGANIZATION THAT PROVIDES PHYSICIAN SERVICES. OPERATIONS AT THE GROUP BEGAN IN FEBRUARY 2010. X false true X X X X X false true false false false false false false false JAMES A SUMMERSETT 450992 0 93554 0 680186 0 12250 0 13297 0 1250279 0 471023 0 CURTIS F HALEY JR 231869 0 35388 0 4101 0 12250 0 12873 0 296481 0 0 0 RALPH KEITH KING 152436 23410 36906 8964 11255 232971 23445 RUBEN GARZA 150109 22630 24948 8864 15590 222141 15456 MADONNA COUGHENOUR 175536 26929 27530 10297 10864 251156 12410 GARY LIGHT 151933 23486 58898 9092 15151 258560 38256 EMMETT CRAIG 142316 20090 29816 0 14577 206799 19078 INFORMATION REGARDING BENEFITS PROVIDED SCHEDULE J, PART I, LINE 1 THE ORGANIZATION OFFERS REIMBURSEMENTS TO EMPLOYEES FOR HALF OF THE FEES PAID FOR HEALTH CLUB MEMBERSHIP. THIS IS A STANDARD BENEFIT OFFERED TO ALL EMPLOYEES. PARTICIPATION IN SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN SCHEDULE J, PART I, LINE 4B PARTICIPANTS IN SERP: JAMES SUMMERSETT - VESTED, BUT NOT RECEIVED $652,629 OF WHICH $471,023 WAS REPORTED ON FORM 990 IN PREVIOUS YEARS. GARY LIGHT - VESTED, BUT NOT RECEIVED $57,055 OF WHICH $38,256 WAS REPORTED ON FORM 990 IN PREVIOUS YEARS. MADONNA COUGHENOUR - VESTED, BUT NOT RECEIVED $24,820 OF WHICH $12,410 WAS REPORTED ON FORM 990 IN PREVIOUS YEARS. RALPH KING - VESTED, BUT NOT RECEIVED $34,996 OF WHICH $23,445 WAS REPORTED ON FORM 990 IN PREVIOUS YEARS. RUBEN GARZA - VESTED, BUT NOT RECEIVED $23,051 OF WHICH $ 15,456 WAS REPORTED ON FORM 990 IN PREVIOUS YEARS. EMMETT CRAIG - VESTED, BUT NOT RECEIVED $28,453 OF WHICH $19,078 WAS REPORTED ON FORM 990 IN PREVIOUS YEARS. INFORMATION REGARDING COMPENSATION REPORTING: THE INTENT OF THE COMPENSATION INFORMATION IS TO PROVIDE INFORMATION ON THE TOTAL COMPENSATION PACKAGE PROVIDED TO OFFICERS, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES. INCLUDING THE ANNUAL ACCUMULATION OF SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN BENEFITS PROVIDES USEFUL INFORMATION ON THE ANNUAL COMPENSATION PACKAGE. HOWEVER, BECAUSE THE RETIREMENT PLAN BENEFITS VEST AT YEAR-END AND ARE INCLUDED IN FORM W-2, THIS RESULTS IN DUPLICATE REPORTING OF PREVIOUSLY REPORTED RETIREMENT BENEFITS, WHICH DISTORT THE IMPACTED EMPLOYEES' TOTAL COMPENSATION FOR THE YEAR. THE SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN WAS REVIEWED AND APPROVED BY THE BOARD TO PROVIDE ELIGIBLE EMPLOYEES WITH MARKET-COMPETITIVE RETIREMENT BENEFITS AND TO ENHANCE THE RETENTION OF THE EXECUTIVE TEAM THROUGH FUTURE SERVICE VESTING REQUIREMENTS. THIS TYPE OF PLAN IS VERY COMMON AMONG NON-PROFIT HEALTHCARE SYSTEMS. AN EXECUTIVE MUST WORK FOR A SPECIFIED NUMBER OF YEARS BEFORE VESTING IN THE PLAN. PRIOR TO VESTING, THE BENEFITS ARE SUBJECT TO A "SUBSTANTIAL RISK OF FORFEITURE" AND, THOUGH NO AMOUNT IS REPORTED IN FORM W-2 OR RECEIVED BY THE EXECUTIVE, THE FORM 990 REQUIRES DISCLOSURE AS DEFERRED COMPENSATION. ONCE AN EXECUTIVE SATISFIES THE PLANS REQUIREMENTS FOR VESTING, THE EXECUTIVE BECOMES "VESTED" AND THE BENEFITS DEFERRED DURING THE PREVIOUS YEARS BECOME FULLY AND IMMEDIATELY TAXABLE IN THE CURRENT YEAR AND REPORTABLE IN THE EXECUTIVES FORM W-2. PER IRS INSTRUCTIONS, COMPENSATION IS REPORTED ON THE FORM 990 ACCORDING TO FORM W-2 RULES, THUS DUPLICATING THE REPORTING OF RETIREMENT PLAN BENEFITS. THE PLAN APPLIES WITHHOLDING FOR FEDERAL TAXES ON THE TAXABLE AMOUNT AND REMITS TO THE GOVERNMENT. THE REMAINING AMOUNT IS HELD IN THE PLAN UNTIL THE EXECUTIVES RETIREMENT. THE RETIREMENT PLAN BENEFITS ARE STILL SUBJECT TO CREDITOR RISK UNTIL RETIREMENT WHEN THE FUNDS ARE ACTUALLY DISTRIBUTED TO THE EXECUTIVES. THOUGH NO AMOUNTS ARE RECEIVED BY THE EXECUTIVE UNTIL RETIREMENT, THE IRS REQUIRES REPORTING OF THE BENEFITS AT THE TIME THEY ARE DEFERRED AND, AGAIN, AT THE TIME THEY ARE INCLUDED IN THE FORM W-2. THE "OTHER COMPENSATION" DISCLOSED IN COLUMN B (III) IN THE CURRENT YEAR INCLUDES THE VESTED BENEFITS OF SEVERAL YEARS' WORTH OF PREVIOUSLY DEFERRED RETIREMENT BENEFITS. IF THE DEFERRED COMPENSATION WAS NOT REPORTED A SECOND TIME, THE REPORTING WOULD BE AS FOLLOWS: NAME: JAMES SUMMERSETT BASE COMPENSATION: 450,992 BONUS AND INCENTIVE PAY: 93,554 OTHER REPORTABLE COMPENSATION: 27,557 RETIREMENT AND DEFERRED COMPENSATION: 12,250 NONTAXABLE BENEFITS: 13,297 TOTAL COMPENSATION: 597,650 CURRENT YEAR ACCRUAL FOR TAXABLE SERP PLAN, NOT DISTRIBUTED: 181,606 NAME: CURTIS HALEY BASE COMPENSATION: 231,869 BONUS AND INCENTIVE PAY: 35,388 OTHER REPORTABLE COMPENSATION: 4,101 RETIREMENT AND DEFERRED COMPENSATION: 12,250 NONTAXABLE BENEFITS: 12,873 TOTAL COMPENSATION: 296,481 CURRENT YEAR ACCRUAL FOR TAXABLE SERP PLAN, NOT DISTRIBUTED: NONE NAME: GARY LIGHT BASE COMPENSATION: 151,933 BONUS AND INCENTIVE PAY: 23,486 OTHER REPORTABLE COMPENSATION: 1,843 RETIREMENT AND DEFERRED COMPENSATION: 9,092 NONTAXABLE BENEFITS: 15,151 TOTAL COMPENSATION: 201,505 CURRENT YEAR ACCRUAL FOR TAXABLE SERP PLAN, NOT DISTRIBUTED: 18,799 NAME: MADONNA COUGHENOUR BASE COMPENSATION: 175,536 BONUS AND INCENTIVE PAY: 26,929 OTHER REPORTABLE COMPENSATION: 2,710 RETIREMENT AND DEFERRED COMPENSATION: 10,297 NONTAXABLE BENEFITS: 10,864 TOTAL COMPENSATION: 226,336 CURRENT YEAR ACCRUAL FOR TAXABLE SERP PLAN, NOT DISTRIBUTED: 12,410 NAME: RALPH KING BASE COMPENSATION: 152,436 BONUS AND INCENTIVE PAY: 23,410 OTHER REPORTABLE COMPENSATION: 1,910 RETIREMENT AND DEFERRED COMPENSATION: 8,964 NONTAXABLE BENEFITS: 11,255 TOTAL COMPENSATION: 197,975 CURRENT YEAR ACCRUAL FOR TAXABLE SERP PLAN, NOT DISTRIBUTED: 11,551 NAME: RUBEN GARZA BASE COMPENSATION: 150,109 BONUS AND INCENTIVE PAY: 22,630 OTHER REPORTABLE COMPENSATION: 1,897 RETIREMENT AND DEFERRED COMPENSATION: 8,864 NONTAXABLE BENEFITS: 15,590 TOTAL COMPENSATION: 199,090 CURRENT YEAR ACCRUAL FOR TAXABLE SERP PLAN, NOT DISTRIBUTED: 7,595 NAME: EMMETT CRAIG BASE COMPENSATION: 142,316 BONUS AND INCENTIVE PAY: 20,090 OTHER REPORTABLE COMPENSATION: 1,363 RETIREMENT AND DEFERRED COMPENSATION 0 NONTAXABLE BENEFITS: 14,577 TOTAL COMPENSATION: 178,346 CURRENT YEAR ACCRUAL FOR TAXABLE SERP PLAN, NOT DISTRIBUTED: 9,375 SUMMARY: SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN BENEFITS ARE VERY COMMON IN NOT-FOR-PROFIT HEALTHCARE ORGANIZATIONS. THESE PLANS NORMALLY ARE STRUCTURED SO THAT EXECUTIVES ARE CREDITED WITH FUNDS WHICH ARE PUT INTO AN ACCOUNT CALLED A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP). THE KNAPP PLAN WAS SPECIFICALLY DESIGNED TO BE "MIDDLE MARKET" - NOT ON THE HIGH OR LOW END OF PLANS AT ORGANIZATIONS OF SIMILAR SCOPE AND SIZE. WHEN THESE SERP FUNDS ARE REPORTED ON THE ORGANIZATIONS 990 FORM, THEY ARE DOUBLE REPORTED PER IRS REQUIREMENTS. EACH YEAR FUNDS ARE DEPOSITED IN THE SERP, THEY ARE REPORTED ON THE FORM 990 FOR EACH PARTICIPATING EXECUTIVE AS DEFERRED COMPENSATION. THEN, AT VESTING (AN EMPLOYMENT PERIOD OF AT LEAST FIVE YEARS FOR THE KNAPP PLAN), THE FULL, ACCUMULATED AMOUNT, AS WELL AS ANY INTEREST EARNED, IS REPORTED AS INCOME ON THE W-2, AGAIN ON THE FORM 990 AND IS TAXED AT THAT TIME. THE EXECUTIVES ARE REQUIRED TO PAY OUT OF POCKET FOR TAX LIABILITY NOT COVERED BY THE SERP PLAN. THESE FUNDS ARE NOT ACCESSIBLE BY THE EXECUTIVE UNTIL THEY ARE FULLY VESTED AND THEY HAVE REACHED NORMAL RETIREMENT AGE. DURING THIS TIME, THE EXECUTIVES REMAIN A GENERAL CREDITOR OF THE ORGANIZATION. WESLACO HEALTH FACILITIES DEVELOPMENT CORP 740393060 950871BR3 2008-12-04 57230000 CONSTRUCTION, EQUIPMENT, REFUNDING false false false 0 0 57426072 40273080 0 0 753824 103096 0 14372063 0 1924009 2013 true true false true false false true false true 0.00000 0.00000 0.00000 true false true true MORGAN KEEGAN 29.5 true TRANSAMERICA LIFE 1.83 true false false PROCESS TO REVIEW FORM 990 FORM 990, PART VI, SECTION A, LINE 11A THE ORGANIZATION ENGAGES AN OUTSIDE ACCOUNTING FIRM TO PREPARE FORM 990. ONCE PREPARED THE FORMS ARE reviewed by the organization's internal accountants. They are then PLACED IN A BOARD PORTAL FOR FINAL REVIEW BEFORE FILING. REGULARLY AND CONSISTENTLY MONITOR WRITTEN CONFLICT OF INTEREST POLICY FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS MONITORED BY THE REVIEW OF QUESTIONNAIRES THAT OFFICERS, DIRECTORS, AND KEY EMPLOYEES COMPLETE ANNUALLY. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, SECTION B, QUESTIONS 15A & 15B THE EXECUTIVE COMPENSATION COMMITTEE (COMMITTEE) OF THE BOARD OF DIRECTORS DETERMINES APPROPRIATE COMPENSATION FOR KNAPP'S EXECUTIVES AND OTHER DISQUALIFIED PERSONS. AS PART OF THIS PROCESS, KNAPP FOLLOWS BEST GOVERNANCE PRACTICES IN MEETING THE IRS REQUIREMENTS TO ENSURE EXECUTIVE COMPENSATION IS REASONABLE AND ESTABLISHES THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER INTERMEDIATE SANCTIONS REGULATIONS. THUS, EXECUTIVE COMPENSATION PROGRAMS AND DECISIONS ARE APPROVED, IN ADVANCE OF THEIR IMPLEMENTATION, BY THE COMMITTEE AS FOLLOWS: - THE COMMITTEE IS COMPRISED OF MEMBERS OF THE BOARD OF DIRECTORS, WHO ARE INDEPENDENT OF KNAPP MANAGEMENT, HAVE NO PERSONAL INTEREST IN THE COMPENSATION ARRANGEMENTS, ARE NOT RELATED TO, OR UNDER THE CONTROL OF ANY INDIVIDUAL WHOSE COMPENSATION ARRANGEMENT IS BEING REVIEWED AND HAVE NO MATERIAL BUSINESS RELATIONSHIP WITH KNAPP. - THE COMMITTEE RELIES UPON APPROPRIATE, INDEPENDENT COMPARABILITY DATA TO SUPPORT ITS DECISION MAKING PROCESS. - THE COMMITTEE ADEQUATELY DOCUMENTS ITS DETERMINATIONS ON A TIMELY BASIS. IN ITS ROLE AS A FIDUCIARY OF THE ORGANIZATION, THE COMPENSATION COMMITTEE OF THE BOARD CAREFULLY AND THOROUGHLY DEBATES THE FORM AND LEVEL OF THE EXECUTIVES' COMPENSATION, RECOGNIZING THE NEED FOR EFFICIENT AND APPROPRIATE USE OF KNAPP MEDICAL CENTER'S ASSETS. THE EXECUTIVE COMPENSATION DISCLOSED IN SCHEDULE J WAS THOROUGHLY REVIEWED AND APPROVED BY THE COMPENSATION COMMITTEE BASED ON COMPARABILITY DATA AND ADVICE PROVIDED BY INDEPENDENT ADVISORS SPECIALIZING IN EXECUTIVE PAY IN TAX-EXEMPT ORGANIZATIONS. GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AVAILABLE TO PUBLIC FORM 990, PART VI, SECTION C, QUESTION 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. MISSION STATEMENT FORM 990, PART I, LINE 1 (CONTINUED FROM PAGE 1) TO SERVE THE HEALTHCARE NEEDS OF OUR COMMUNITY, KNAPP VALUES UNSURPASSED CARE AND CARING, APPROPRIATE CLINICALLY-ADVANCED SERVICES, RESPECT AND DIGNITY TOWARD ALL, A TEAMWORK ENVIRONMENT AND EFFICIENT USE OF RESOURCES. OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 5 UNREALIZED GAIN $6,554,660 CHANGE IN INTEREST RATE SWAP 890,316 TRANSFERS TO AFFILIATES (481,362) ------------ TOTAL CHANGE IN NET ASSETS $6,963,614 WRITTEN JOINT VENTURE POLICY OR PROCEDURES FORM 990, PART VI, LINE 16B While the organization does not have a policy as stated in question 16b the organization does have a policy that the organization evaluates the financial affairs of controlled entities. The only joint venture the organization participates in is a related controlled entity which is evaluated under the above referenced policy. HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JAMES A SUMMERSETT TITLE:PRESIDENT/CEO HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:CURTIS F HALEY JR TITLE:EXECUTIVE VP CFO HOURS:2 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DINAH GONZALEZ TITLE:EXECUTIVE VP & CFO HOURS:3 KNAPP MEDICAL CENTER FOUNDATION 1401 E 8TH STREET WESLACO TX 78596 742213711 SUPPORT KMC TX 501(C)(3) 11B NA MID VALLEY PHYSICIANS ASSOCIATION 1401 E 8TH STREET WESLACO TX 78596 742755150 SUPPORT TX 501(C)(3) 11A NA KNAPP MEDICAL GROUP 1402 E 8TH ST WESLACO TX 78596 271619835 HEALTHCARE TX 501(C)(3) 3 NA KNAPP MEDICAL CENTER ASC LLC 1401 E 8TH ST WESLACO TX 78596 262887948 AMBULATORY SURG TX NA RELATED -116152 3794268 false -116152 true true false true true false false false false false false false true true true false true false false KNAPP MEDICAL CENTER ASC LLC A 142942 KNAPP MEDICAL CENTER ASC LLC D 1700000 KNAPP MEDICAL CENTER FOUNDATION C 671848