2012-05-11T14:51:12-05:00 2011-06-30 GRANT THORNTON LLP 2001 MARKET STREET SUITE 3100 PHILADELPHIA PA 19103 990 2010-07-01 251838458 Allegheny Specialty Practice Network ALLE 4123306022 C/O Tax Dept Two Allegheny Center Pittsburgh PA 15212 MATTHEW PETERSON 4123306005 2012-05-04 true 2155614200 2010 2016-02-24 21:20:13Z Matthew Peterson Two Allegheny Center 11th Fl Pittsburgh PA 15212 193556544 false X www.wpahs.org X 1999 PA Form 990, Page 2, Part III, Question 1 3 0 1700 0 0 0 0 20000000 150177344 170831115 19808 13195 2350258 2712234 152547410 193556544 1125 3550 0 0 165691247 215009548 0 0 0 42210556 53017840 207902928 268030938 -55355518 -74474394 20191803 27637198 57686203 66150552 -37494400 -38513354 X ALLEGHENY SPECIALTY PRACTICE NETWORK IS AN ORGANIZATION DEFINED BY OUR TALENTED PEOPLE. AN ORGANIZATION COMMITTED TO EXCELLENCE; AN ORGANIZATION WITH ONE PURPOSE AND ONE MISSION. OUR ONE PURPOSE IS TO IMPROVE THE HEALTH OF THE PEOPLE IN THE WESTERN PENNSYLVANIA REGION. OUR ONE MISSION IS TO PRACTICE MEDICINE, EDUCATE AND CONDUCT RESEARCH AS AN INTEGRATED TEAM OF PHYSICIANS, NURSES AND SUPPORT PROFESSIONALS WHO ARE COMMITTED TO IMPROVING THE HEALTH OF OUR PATIENTS. false false 69621000 0 45363000 The purpose of Allegheny Specialty Practice Network is to improve the health of the people in Western Pennsylvania. In order to accomplish this mission, Allegheny Specialty Practice Network provides Internal Medicine services to those individuals in need of medical treatment. 39269000 0 26662000 The purpose of Allegheny Specialty Practice Network is to improve the health of the people in Western Pennsylvania. In order to accomplish this mission, Allegheny Specialty Practice Network provides Anesthesia services to those individuals in need of medical treatment. 29740000 0 22579000 The purpose of Allegheny Specialty Practice Network is to improve the health of the people in Western Pennsylvania. In order to accomplish this mission, Allegheny Specialty Practice Network provides Orthopedic services to those individuals in need of medical treatment. 108744268 3550 76227115 Other Medical Services Provided to Patients 108744268 3550 76227115 247374268 true true false true false false false false true true false false false true true false true false false false false false false false false false false false true false false false false false false false false false false false false false true false false false false true 164 0 true 1700 true false false false false false false false false false false X 3 0 false false false false false false false true true false false true true true true true true true true true true PA X X MATTHEW PETERSON 4123306005 TWO ALLEGHENY CENTER 11TH FLOOR Pittsburgh PA 15212 X Sanford Kurtz MD 20.0 X X 0 1008252 0 Dawn Gideon 1.0 X 0 681942 0 Roy Santarella 1.0 X X 0 1118480 0 Christopher Olivia MD 1.0 X X 0 1974582 0 Diane Dismukes 1.0 X X 0 0 0 Thomas Albanesi 1.0 X 0 321474 0 Judy Hlafcsak 1.0 X 0 458102 0 Deborah Olszewski 1.0 X 0 188656 0 Robert Brandfass 1.0 X 0 0 0 David Kiehn 1.0 X 0 555706 0 George Magovern MD 39.0 X 614319 0 0 Ed Roeber 20.0 X 320625 0 0 Susan Manzi MD 10.0 X 366562 0 0 Jack Wilberger MD 39.0 X 988347 0 0 Tony Farah MD 10.0 X 596625 0 0 Patrick Demeo MD 39.0 X 1031314 0 0 Mark Barnhart 20.0 X 0 425823 0 Barbara Mercadante 40.0 X 192428 0 0 Christopher Schmidt MD 40.0 X 1035840 0 0 Hae Dong Jho MD 40.0 X 1297404 0 0 Donald Whiting MD 40.0 X 1168445 0 0 Howard Senter MD 40.0 X 1129133 0 0 Mark Baratz MD 40.0 X 1170629 0 0 Michael Devita MD X 0 300183 0 9911671 7033200 0 442 true true false Pricewaterhouse Coopers LLP PO Box 7247-8001 PHILADELPHIA PA 171708001 CONSULTING SERVICE 2303935 HEALTH ASSOCIATION OF WESTERN PA PC 680 ANDERSON ROAD PITTSBURGH PA 15220 PHYSICIAN SERVICES 797500 TOMAYKO GROUP LLC 2403 SIDNEY STREET PITTSBURGH PA 152035119 EQUIPMENT RENTAL 689274 ALVAREZ AND MARSAL 600 LEXINGTON AVENUE NEW YORK NY 10022 CONSULTING SERVICE 437571 BETTER TRANSCRIPTION OPTIONS INC 502 HUNTER DRIVE PITTSBURGH PA 15237 Transcription Serv. 327914 15 20000000 20000000 PATIENT SERVICE REVENUE 621110 170831115 170831115 170831115 13195 13195 0 0 107746 107746 107746 107746 0 0 0 0 HOSPITALIST SERVICES 621110 474154 474154 MANAGEMENT FEES 621110 180750 180750 WHEELING HOSPITAL SERVICES 621110 165860 165860 1783724 1783724 2604488 193556544 173435603 120941 3550 3550 0 0 0 4335017 4016827 318190 0 188141059 174331505 13809554 6963405 6452291 511114 6252355 5793432 458923 9317712 8633793 683919 0 24074 14774 9300 0 0 0 0 12574567 11651594 922973 216182 213236 2946 1018054 896843 121211 0 0 8263742 7450997 812745 898464 855935 42529 0 363438 336762 26676 0 1490219 1490219 1113040 1001736 111304 9097425 9079230 18195 REPAIR AND MAINTENANCE 1244916 1120424 124492 BAD DEBT 6474342 6474342 PATIENT CARE MEDICATIONS 5880476 5880476 ORGANIZATIONAL RESTRUCTURING 1365292 546117 819175 MEMBERSHIP DUES 1150261 1138758 11503 1843348 1481646 361702 268030938 247374268 20656670 0 11760 4298 118771 1767740 12904564 14427020 21333 21333 0 81700 1550501 1523004 18388186 9100660 3422837 9287526 1889577 0 272460 524577 20191803 27637198 17651533 24244538 2520398 2299330 37514272 39606684 57686203 66150552 X -37495448 -38514402 1048 1048 -37494400 -38513354 20191803 27637198 X -74474394 73455440 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 0 45981 424588 45981 424588 267984957 1647450412 268030938 1647875000 1000000 1000000 250000 250000 1000000 1000000 1000000 1000000 4000000 6000000 613479 585102 418483 424588 2041652 250000 250000 250000 250000 1000000 1500000 0 0 0 0 0 Lobbying Expenditures Form 990, Schedule C, Page 2, Part II-A, Line 1b, Column (a) Allegheny Specialty Practice Network (ASPN) has made the IRC Section 501(h) election. ASPN is a member of the West Penn Allegheny Health System (WPAHS). The System employs an Executive Vice President for External Affairs to lobby issues of importance to WPAHS and all of its members. WPAHS also elected to engage the services of outside consultants to assist us in lobbying issues of importance. The lobbying expenditures of $45,981 attributed to ASPN on Schedule C, Page 2, Part II-A reflect expenditures allocated to ASPN from WPAHS and do not reflect direct expenditures made by ASPN. 1048 1048 1048 1048 1297 249 1048 1.00000 false false 522984 515833 7151 3603772 1152290 2451482 14252213 7432538 6819675 9218 9218 9287526 0 ACCRUED PENSION LIABILITY 36024682 INSURANCE LIABILITY 2331342 LEASE ESCALATION LIABILITY 1143510 DUE FROM AFFILIATED ORGANIZATIONS 107150 39606684 ASPN Inclusion in the Consolidated Audit of WPAHS Form 990, Schedule D, Part X Question 2, Part XII and XIII Allegheny Specialty Practice Network (ASPN) does not issue independent audited financial statements. ASPN is a member of a regional healthcare system named West Penn Allegheny Health System. The West Penn Allegheny Health System receives a consolidated audit which includes the operations of ASPN. The net loss of $74,474,394 reflected on Form 990 page 1, line 19 agrees to the net loss reflected on the financial statements. No reclassifications to financial statement net income were made on Form 990. The following is the footnote to the audited consolidated financial statements of the West Penn Allegheny Health System for FASB ASC 740: WPAHS adopted Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. FASB ASC 740 prescribes a more-likely than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken. Under FASB ASC 740, tax positions will be evaluated for recognition, derecognition, and measurement using consistent criteria and will provide more information about the uncertainty in income tax assets and liabilities. Based on an analysis prepared by WPAHS, it was determined that the application of FASB ASC 740 had no material effect on the recorded assets and liabilities of WPAHS. Intended Use of the Organization Endowment Funds Schedule D, Page 2, Part V, Line 4 The intended use of Allegheny Specialty Practice Network term endowments are for but not exclusive to: capital improvements, research, education, departmental needs, operating efficiencies, and overall patient care. X X X X X true false false false false false false false false Sanford Kurtz MD 0 734648 0 232000 0 41604 0 684210 0 14252 0 1706714 0 0 Dawn Gideon 0 520544 0 10139 0 151259 0 530667 0 16045 0 1228654 0 0 Roy Santarella 0 745857 0 321000 0 51623 0 1418288 0 16555 0 2553323 0 0 Michael Devita MD 0 69794 0 0 0 230389 0 0 0 2000 0 302183 0 230217 Christopher Olivia MD 0 1209879 0 678000 0 86703 0 5396562 0 20495 0 7391639 0 0 Thomas Albanesi 0 278626 0 42488 0 360 0 293054 0 18346 0 632874 0 0 Judy Hlafcsak 0 252637 0 8351 0 197114 0 287242 0 4480 0 749824 0 0 Deborah Olszewski 0 171611 0 16070 0 975 0 9433 0 1690 0 199779 0 0 George Magovern MD 613287 0 0 0 1032 0 12250 0 19726 0 646295 0 0 0 Ed Roeber 320625 0 0 0 0 0 0 0 0 0 320625 0 0 0 Susan Manzi MD 316424 0 50000 0 138 0 0 0 11944 0 378506 0 0 0 Jack Wilberger MD 844713 0 95000 0 48634 0 77084 0 17935 0 1083366 0 0 0 Tony Farah MD 596073 0 0 0 552 0 9800 0 19726 0 626151 0 0 0 Patrick Demeo MD 864512 0 166250 0 552 0 10819 0 18526 0 1060659 0 0 0 Mark Barnhart 0 316534 0 99031 0 10258 0 9800 0 25401 0 461024 0 0 Barbara Mercadante 167473 0 24600 0 355 0 10667 0 16320 0 219415 0 0 0 Christopher Schmidt MD 872104 0 163376 0 360 0 9800 0 14728 0 1060368 0 0 0 Hae Dong Jho MD 995291 0 300529 0 1584 0 14700 0 14536 0 1326640 0 0 0 Donald Whiting MD 793492 0 374401 0 552 0 9800 0 19345 0 1197590 0 0 0 Howard Senter MD 796585 0 330964 0 1584 0 14700 0 13051 0 1156884 0 0 0 Mark Baratz MD 870077 0 300000 0 552 0 10785 0 4402 0 1185816 0 0 0 David Kiehn 0 444122 0 110000 0 1584 0 14700 0 14449 0 584855 0 0 Additional Compensation Disclosure Form 990, Schedule J, Page 1 The following represents additional disclosure for Schedule J, line 4a pertaining to officers and key employees listed in Form 990, Part VII, Section A, Line 1a receiving severance pay during the calendar year ending within the June 30, 2011 fiscal year end: Michael Devita, MD $230,217 Judy Hlafcsak $125,276 Dawn Gideon $104,173 The following list represents Officers, Directors or Key Employees of Allegheny Specialty Practice Network listed on Form 990, Part VII who did not serve a full consecutive twelve month tenure for the year ended June 30, 2011 along with the dates served: Dawn Gideon 07-01-2010 - 10-31-2010 Christopher Olivia, MD 07-01-2010 - 06-28-2011 Diane Dismukes 06-29-2011 - 06-30-2011 Judy Hlafcsak 07-01-2010 - 09-03-2010 Deborah Olszewski 07-01-2010 - 03-25-2011 Robert Brandfass 03-25-2011 - 06-30-2011 Thomas Albanesi 07-01-2010 - 01-27-2011 David Kiehn 01-27-2011 - 06-30-2011 Edward Roeber 07-01-2010 - 07-31-2010 Tony Farah, MD 06-09-2011 - 06-30-2011 Deferred Compensation Schedule J, Page 2, Column C Retirement and other deferred compensation reflect amounts accrued to the benefit of the applicable individuals related to qualified pension and severance plans. In this regard, the following individuals have amounts accrued related to future severance payments to be made: Christopher Olivia, MD Roy Santarella Judy Hlafcsak Thomas Albanesi Sanford Kurtz Dawn Gideon Subsequent Event - Proposed Affiliation Form 990 - General Information West Penn Allegheny Health System, of which Allegheny Specialty Practice Network is an affiliate, is pursuing a formal corporate affiliation with UPE, a recently formed tax-exempt organization, and Highmark Inc., a non-profit corporation with substantial health insurance operations throughout Western Pennsylvania. UPE has made filings with the applicable regulatory authorities to acquire control of Highmark. Following the anticipated affiliation, UPE also will assume control of West Penn Allegheny Health System. West Penn Allegheny Health System approved the affiliation in 2011 in order to restore financial viability to the System and ensure its long term survival as a provider of quality healthcare services to the communities it has served for several generations. Among other advantages to the transaction, the affiliation will create a regional integrated health care services delivery and financing system that will better position West Penn Allegheny Health System given the competitive pressures in the Western Pennsylvania market. An affiliation agreement was signed by the parties in October, 2011. As of the date of this filing the regulatory agencies that must approve the transaction have either given their approval or are in the process of undertaking their review. We are optimistic that all approvals will be granted by the end of the 2012 calendar year and possibly sooner. Allegheny Specialty Practice Network - Board of Director Independence Form 990, Page 1, Part I, Line 4 The appointment of the Allegheny Specialty Practice Network Board of Directors is made by the sole member of the organization, West Penn Allegheny Health System, Inc. The Bylaws of Allegheny Specialty Practice Network provides that the sole member has the exclusive power to fix the number of, and elect, appoint, fill vacancies in and remove, with or without cause, the Directors; and elect and remove, with or without cause, the Chair and Vice Chair of the Board of Directors of the Corporation, and the Secretary and Treasurer of the Corporation. The Board of Directors of the sole member of Allegheny Specialty Practice Network is comprised of a majority of independent Board Members. The Board of Directors of Allegheny Specialty Practice Network consists of three members who have voting rights on matters pertinent to the organization. Of these three members, none are deemed to be independent to the organization. Because of the independence of the Board of Directors of the sole member, and the rights and powers of the sole member to appoint and fix the Board of Directors of Allegheny Specialty Practice Network, we deem that the Board of Directors of Allegheny Specialty Practice Network is in fact controlled by a majority of independent Board Members. Statement of Program Service Accomplishments - Continued Form 990, Page 2, Part III, Question 4 INTRODUCTION TO ALLEGHENY SPECIALTY PRACTICE NETWORK (ASPN) Allegheny Specialty Practice Network is part of the West Penn Allegheny Health System (WPAHS). Organized in 2000, WPAHS (www.wpahs.org) is comprised of West Penn Allegheny Health System, Inc., (WPAHS, Inc.), West Penn Allegheny Oncology Network (WPAON) West Penn Physician Practice Network (WPPPN), Alle-Kiski Medical Center (AKMC), Canonsburg General Hospital (CGH), Canonsburg General Hospital Ambulance Service, Inc. (CGH Ambulance) Allegheny Medical Practice Network (AMPN), Allegheny Specialty Practice Network (ASPN), Allegheny-Singer Research Institute (ASRI), Alle-Kiski Medical Center Trust (AKMC Trust), Forbes Health Foundation (FHF), Suburban Health Foundation (SHF) and the Western Pennsylvania Hospital Foundation (WPHF). ASPN is a Pennsylvania non-profit and non-stock corporation that was formed on June 16, 1999 to provide clinical instruction and teaching services. Consisting primarily of physician specialists, ASPN is the sister organization to the primary care network of AMPN, which in combination, function as the faculty practice plan for AGH. ASPN employs full time specialty physicians who teach and provide clinical instruction to third and fourth year medical students from Drexel University College of Medicine. This instruction is provided at the hospitals operated by AGH, WPH, AKMC, and CGH. The charitable missions (including clinical and educational activities) of the WPAHS hospitals are carried out via the faculty and staff of ASPN. In keeping with its tradition of innovation and research, AGH is an affiliate site for the Philadelphia-based Drexel University College of Medicine, and is currently conducting studies in the neurosciences, human oncology, human genetics, cardiovascular and pulmonary disease, allergy and asthma, orthopaedics and trauma. AGH is also host to the headquarters of the National Surgical Adjuvant Breast and Bowel Project, the nation's largest breast cancer study, which is sponsored by the National Cancer Institute. This research activity is all conducted by ASPN physicians. ASPN consists of over 391 specialty and primary care physicians in the western Pennsylvania community, specializing in anesthesiology, cardiology, emergency medicine, neurosurgery, trauma, orthopaedics, neurology, pediatrics, obstetrics/gynecology, and general and specialty surgery at mulitple practice sites throughout the System's service area. In addition, ASPN physician-employees teach medical students, residents, interns and fellows serving in AGH, WPH, AKMC and CGH. Instruction is both classroom-based and clinical-based. Clinical instruction refers to teaching medical knowledge, skills and procedures in the course of rendering medical care to patients. It includes performance of medical services by the physician-employees in the presence of medical students, interns, residents and fellows, and patient care by interns, residents and fellows under the supervision of the physician-employees. PURPOSE AND MISSION Allegheny Specialty Practice Network is an organization defined by our talented people. We are an organization committed to excellence; an organization with one purpose and one mission. Our purpose is to improve the health of the people in the Western Pennsylvania region. Our mission is to practice medicine, educate and conduct research as an integrated team of physicians, nurses and support professionals who are committed to improving the health of our patients. UNCOMPENSATED CARE To enhance the health status of the community in which it operates and consistent with its tax-exempt status, ASPN provides needed health care services to individuals regardless of their ability to pay for all or part of the services rendered. These services include both inpatient and outpatient services as well as an emergency room that remains available 24 hours a day at affiliated hospitals. Components of uncompensated care include charity care measured at cost and medical assistance shortfall. ASPN provided uncompensated care of approximately $19,770,058 in Fiscal 2011. COMMUNITY ASSESSMENT Community Health Services Community health services include activities carried out to improve community health. They extend beyond patient care activities and are subsidized by the hospital. The programs focus on burn trauma, women's health and child development, public education and awareness, public health screenings and clinics, support groups, and other community health services. ASPN provided the following community health services during Fiscal 2011 at an estimated cost of $15,842. Community Health Fairs - During the year, ASPN participated in various community health fairs. At these fairs, educational information is presented and individuals can ask our physicians about health issues that are affecting them. Shoot for your Good Health- During the year, ASPN participated in the annual Shoot for your Good Health. This camp provided asthma education and screening, general health screening as well as basketball instruction and lessons on health life style behaviors. St. Bede's Asthma Basketball Camp - this camp provided asthma education, medication education, general health screenings, basketball instruction and lessons on health life style behaviors. Health Professions Education ASPN provides health professionals with educational opportunities to advance their careers in healthcare. Consistent with the filing of Schedule H, ASPN provided the following health professions education during Fiscal 2011 at an estimated cost of $4,274,430. As noted in the introduction, ASPN's physician-employees teach medical students, residents, interns and fellows serving in AGH, WPH, AKMC and CGH. Instruction is both classroom-based and clinical-based. Clinical instruction refers to teaching medical knowledge, skills and procedures in the course of rendering medical care to patients. It includes performance of medical services by the physician-employees in the presence of medical students, interns, residents and fellows, and patient care by interns, residents and fellows under the supervision of the physician-employees. In addition to the student teaching noted above, ASPN physicians and staff provide a variety of professional education to other physicians and health professionals. Financial Contributions ASPN supports the community through cash contributions made at the discretion of ASPN and its directors, benefiting not only the non-profit recipient but ultimately the community as a whole. ASPN made cash contributions totaling $1,950 including the following: St. Thomas A'Becket Catholic Church food festival Sponsor American Cancer Society donation St. Louise deMarillac Catholic Church donation Lower Burrell Volunteer Fire Company Western Pennsylvania Hospital Foundation Form 990 Review Process Form 990, Page 6, Part VI, Section B, Question 11A Form 990 is prepared internally by an employee of the West Penn Allegheny Health System, Inc. (Health System) Tax Department who is a certified public accountant. The document is then reviewed internally by top management officials of the Health System. A detailed external review is conducted by Health System external tax advisors, who sign the return as preparer. Members of the Audit and Compliance committee of the Health System Board review the Form 990 and recommend changes or accept the document as presented. A copy of the Form 990 is made available to every board member for review prior to filing the document with the Internal Revenue Service. Monitoring and Enforcement of the Conflict of Interest Policy Form 990, Page 6, Part VI, Section B, Question 12c Allegheny Specialty Practice Network is a member of the West Penn Allegheny Health System (WPAHS). WPAHS has a corporate compliance department that monitors and oversees compliance with the conflict of interest policy of all organizations in the health system. The following describes the manner in which the corporate compliance department monitors and oversees compliance with the conflict of interest policy for Allegheny Specialty Practice Network as well as the other WPAHS affiliates: Conflict of Interest disclosure forms are completed on an annual basis by all board members, officers, employees who have a title of Manager and above, physicians in leadership roles, Pharmacy and Therapeutic Committee members, all employees of the System's Compliance and Internal Audit Departments as well as personnel involved with contracting in the Corporate Purchasing Department. Upon completion of the above disclosure statement by all applicable individuals, a report is generated listing all individuals that have reported a conflict. The System Compliance Officer and General Counsel review the conflicts disclosed. Those that require additional information or clarification receive a letter from the Compliance Officer requesting such. Once received, all additional information is added to the report and again reviewed by the Compliance Officer and General Counsel. Those conflicts that require a mitigation plan are sent to the respective organization's senior management for development of the mitigation plan. The organization's senior management is responsible to discuss the mitigation plan with the individual as needed and monitor compliance with the mitigation plan. Once mitigation is received, a final report is reviewed with the System Compliance Executive Committee and finally the Audit & Compliance Committee of the Board. In addition, all WPAHS board members, officers and key employees complete an annual independence disclosure statement which assists the System's Compliance Officer and Internal Audit Department to determine and monitor the levels of independence in each of the System's tax exempt affiliates as well as to determine the level of Form 990, Schedule L reporting. Process Used To Determine Executive Compensation Form 990, Page 6, Part VI, Section B, Question 15b West Penn Allegheny Health Systems (WPAHS) process for determining compensation for executive positions (including officers, key employees and other management positions) within Allegheny Specialty Practice Network is covered by the WPAHS Executive Compensation Policy. This policy was approved by the West Penn Allegheny Health System, Inc. Board of Directors. It is the policy of WPAHS and its Board of Directors to compensate its executives in accordance with the market and in relation to the experience, service and accomplishments of the individual both prior to and during their service with WPAHS. The Compensation Committee of the West Penn Allegheny Health System, Inc. Board of Directors approves the compensation for WPAHS senior executives. The Compensation Committee approves the initial compensation for newly hired senior executives, which shall include all compensation components, including without limitation, base compensation, incentive compensation, deferred compensation, fringe and other benefits, as well as the total compensation. It shall also approve all base compensation adjustments and all incentive compensation awards, as well as material changes to deferred compensation, fringe, or other benefits. The Compensation Committee uses comparability data provided by the System Human Resources Department, which may include industry surveys, expert compensation studies, documented compensation of persons holding similar positions, or other comparable data in approving any executive compensation. The Compensation Committee shall periodically retain the services of an independent compensation consultant to provide an expert opinion report as to the reasonableness of total compensation of Allegheny Specialty Practice Network officers and key employees. Each Compensation Committee member voting on a senior executive's compensation arrangement ensures that he or she has no conflict of interest, including that he or she (a) does not economically benefit from the proposed employment; (b) does not receive compensation subject to the approval of the proposed employee; and (c) has no material financial interest affected by the transaction. The Compensation Committee consists of five independent Board Members of West Penn Allegheny Health System, Inc. All decisions of the Compensation Committee regarding executive compensation matters are documented. Public Availability of Organizational Documents Form 990, Page 6, Part VI, Section C, Line 19 Allegheny Specialty Practice Network (ASPN) does not make its governing documents available to the public. ASPN is a member of the West Penn Allegheny Health System (WPAHS). The WPAHS makes available their annual and quarterly financial statements through the use of a dissemination agent. These financial statements are on a consolidated basis with ASPN being one of the consolidated entities. In addition, the WPAHS annual report and quarterly financial results are available on the WPAHS website. WPAHS has adopted a conflict of interest policy that is uniformly applied to all organizations of the health system, including ASPN. A condensed version of this conflict of interest policy is available on the WPAHS website. The condensed policy is contained in the code of ethics disclosure. Officer, Director and Key Employee Hour Allocation Form 990, Page 7, Part VII, Section A, Column B Allegheny Specialty Practice Network allocates hours to officers, directors and key employees employed by Allegheny Specialty Practice Network or a related organization on the basis of a 40 hour work week. Allegheny Specialty Practice Network is a member of an integrated healthcare delivery system consisting of 13 different organizations. Many individuals are Health System executives who serve prominent roles on various organizations. Every employed individual who serves as an officer, director or key employee of any related organization as well as Allegheny Specialty Practice Network will be allocated time served out of the 40 hour work week for each separate related organization. Thus, the cumulative total for each individual spread out between Allegheny Specialty Practice Network and the 12 related organizations will equal 40 hours. Directors of Allegheny Specialty Practice Network serving on a volunteer basis are allocated one hour of service per week to Allegheny Specialty Practice Network. If the director also volunteers time to one of the 12 related organizations in the capacity of a director for that related organization, one hour per week is reflected as devoted to each related organization served. The time and efforts of the volunteer directors of Allegheny Specialty Practice Network may vary upon the needs of the organization. The one hour per week reported in Part VII is an estimate of the average time spent per week by the Allegheny Specialty Practice Network volunteer directors when viewed on an annual basis. Rental Expense Form 990, Page 9, Part VIII, Line 6b Allegheny Specialty Practice Network does not account for rental expenses in a manner that would allow us to reflect the expense as a direct offset to rental income. The components of rental expense is reflected on Form 990, Page 10, Statement of Functional Expense. Health System Tax Exempt Bond Issuance Form 990, Page 11, Part X, Line 20 Allegheny Specialty Practice Network is a member of the West Penn Allegheny Health System obligated group in regards to 2007 Allegheny County Hospital Development Authority tax-exempt bonds. The purpose of the issue of the Allegheny County Hospital Development Authority (ACHDA) Hospital Revenue Bonds, Series 2007 A is to refund the outstanding ACHDA Series 2000A and B Bond Issues, refund the Dauphin County General Authority (DCGA) Series 1992A and B Hospital Bonds, the Pennsylvania Higher Education Facility Authority (PHEFA) Series 1991A Revenue Bonds, the Monroeville Hospital Authority (MHA) Series 1992 and 1995 Revenue Bonds, the funding of a project fund for certain prior and future capital expenditures and to pay the cost of issuing Series 2007A Debt. No internal allocation of debt has been made to Allegheny Specialty Practice Network, however, the organization's assets are security for purposes of this bond issue. Other Changes In Net Assets Form 990, Page 12, Part XI, Line 5 The following represents a reconciliation of the other changes in net assets of Allegheny Specialty Practice Network for the year ended June 30, 2011: Net Transfers From Affiliated Organizations $76,600,260 Change in Minimum Pension Liability (3,144,820) ____________ $73,455,440 Allegheny Specialty Practice Network - Schedule H Filing Requirements Schedule A, Part I, Line 3 Internal Revenue Service Form 990, Schedule H is required to be completed by all organizations that meet the IRS definition of a Hospital and in addition, is required to be licensed, registered or similarly recognized by a state as a Hospital. Allegheny Specialty Practice Network is classified by the Internal Revenue Service as a Hospital under IRC section 170(b)(1)(A)(iii). Allegheny Specialty Practice Network is not required to be licensed, registered or similarly recognized as a Hospital by the State of Pennsylvania. Accordingly, Internal Revenue Service Form 990, Schedule H is not completed by Allegheny Specialty Practice Network. HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Sanford Kurtz MD TITLE:Director & PO President & CEO HOURS:20 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Dawn Gideon TITLE:Director HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Roy Santarella TITLE:Director & Treasurer HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Christopher Olivia MD TITLE:Health System President & CEO HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Diane Dismukes TITLE:Health System President & CEO HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Thomas Albanesi TITLE:Assistant Treasurer HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Judy Hlafcsak TITLE:Secretary HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Deborah Olszewski TITLE:Assistant Secretary HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Robert Brandfass TITLE:Secretary HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:David Kiehn TITLE:Assistant Treasurer HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:George Magovern, MD TITLE:Physician HOURS:1 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Ed Roeber TITLE:ASPN Chief Financial Officer HOURS:20 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Susan Manzi, MD TITLE:System Chair Dept. of Medicine HOURS:30 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Jack Wilberger MD TITLE:Physician HOURS:1 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Tony Farah, MD TITLE:Interim PO President & CEO HOURS:30 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Patrick Demeo MD TITLE:Physician HOURS:1 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Mark Barnhart TITLE:ASPN Chief Operating Officer HOURS:20 West Penn Allegheny Health System Inc 4800 Friendship Avenue Pittsburgh PA 15224 250969492 Healthcare PA 501(c)(3) 3 NA Allegheny Singer Research Institute 320 East North Avenue Pittsburgh PA 15212 251320493 Sci Research PA 501(c)(3) 4 NA Canonsburg General Hospital 100 Medical Boulevard Canonsburg PA 15317 251737079 Healthcare PA 501(c)(3) 3 NA Allegheny Medical Practice Network 4800 Friendship Avenue Pittsburgh PA 15224 251838457 Healthcare PA 501(c)(3) 3 NA Alle-Kiski Medical Center 1301 Carlisle Street Natrona Heights PA 15065 251875178 Healthcare PA 501(c)(3) 3 NA West Penn Allegheny Oncology Network 4800 Friendship Avenue Pittsburgh PA 15224 113683376 Healthcare PA 501(c)(3) 11-III FL NA West Penn Physician Practice Network 4800 Friendship Avenue Pittsburgh PA 15224 251494317 Healthcare PA 501(c)(3) 9 NA CGH Ambulance Service Inc 100 Medical Boulevard Canonsburg PA 15317 232939715 Emer Response PA 501(c)(3) 9 NA Alle-Kiski Medical Center Trust 1301 Carlisle Street Natrona Heights PA 15065 205855753 Fundraising PA 501(c)(3) 11-I NA Forbes Health Foundation 2570 Haymaker Road Monroeville PA 15146 251798379 Fundraising PA 501(c)(3) 7 NA Suburban Health Foundation 100 South Jackson Avenue Pittsburgh PA 15202 251472073 Fundraising PA 501(c)(3) 11-I NA Western Pennsylvania Hospital Foundation 4800 Friendship Avenue Pittsburgh PA 15224 251470766 Fundraising PA 501(c)(3) 11 - I NA West Allegheny Hospital 100 Medical Boulevard Canonsburg PA 15317 251054206 Inactive PA 501(c)(3) 3 NA Greater Canonsburg Health System 100 Medical Boulevard Canonsburg PA 15317 251488089 Inactive PA 501(c)(3) 11-I NA Canonsburg HealthHospital Foundation 100 Medical Boulevard Canonsburg PA 15317 251818505 Inactive PA 501(c)(3) 11-I NA Burn Care Associates 4800 Friendship Avenue Pittsburgh PA 15224 232899534 Healthcare PA NA C Corporation Liberty Physicians 4800 Friendship Avenue Pittsburgh PA 15317 251637318 Healthcare PA NA C Corporation Medical Center Clinic 4800 Friendship Avenue Pittsburgh PA 15224 232894939 Healthcare PA NA C Corporation West Penn Corporate Medical Services Inc 4800 Friendship Avenue Pittsburgh PA 15224 251437405 Healthcare PA NA C Corporation West Penn Medical Associates 4800 Friendship Avenue Pittsburgh PA 15224 251666783 Healthcare PA NA C Corporation West Penn Neurosurgery 4800 Friendship Avenue Pittsburgh PA 15224 251630719 Inactive PA NA C Corporation West Penn OBGYN Multispecialty 4800 Friendship Avenue Pittsburgh PA 15224 251619226 Healthcare PA NA C Corporation Friendship Insurance Company Barclays House Shedden Rd Grand Cayman Cayman Islands CJ PO Box 1051 980116952 Insurance CJ NA C Corporation false true true false false false false false false false false false false false true true false false Transactions with Affiliated Organizations Schedule R, Part V, Line 2 Allegheny Specialty Practice Network has chosen not to complete Schedule R, Part V, line 2. The disclosure of this information is only required for organizations listed in Schedule R, Part V, line 2 that are controlled entities within the meaning of section 512(b)(13). No organization listed in Schedule R, Part V, line 2 is a controlled entity within the meaning of section 512(b)(13) for Allegheny Specialty Practice Network.