2012-08-08T08:41:28-05:00 2011-12-31 232932984 PARENTEBEARD LLC 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2011-01-01 251767436 HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA HOSP 7175649200 4750 LINDLE ROAD PO BOX 8600 HARRISBURG PA 171058600 MICHAEL A SUCHANICK 7175649200 2012-08-06 1 JULIUS GREEN CPA P00350393 2159720701 2011 2016-02-24 21:20:13Z CAROLYN F SCANLAN 4750 LINDLE ROAD PO BOX 8600 HARRISBURG PA 171058600 13322518 0 X WWW.HAPONLINE.ORG X 1921 PA TO ADVOCATE FOR AND PROVIDE SERVICES TO PENNSYLVANIA'S HOSPITALS AND HEALTH SYSTEMS AS THEY STRIVE TO DELIVER SAFE, EFFICIENT, AND QUALITY HEALTH CARE TO THE PATIENTS AND COMMUNITIES THEY SERVE. 23 23 82 23 0 0 36751 76933 8925467 10181897 639073 563709 -156331 -210553 9444960 10611986 0 5500 0 0 7152589 7409629 0 0 0 2713315 2604855 9865904 10019984 -420944 592002 25278357 26988995 4984817 6656568 20293540 20332427 TO ADVOCATE FOR AND PROVIDE SERVICES TO PENNSYLVANIA'S HOSPITALS AND HEALTH SYSTEMS AS THEY STRIVE TO DELIVER SAFE, EFFICIENT, AND QUALITY HEALTH CARE TO THE PATIENTS AND COMMUNITIES THEY SERVE. 0 0 HAP EDUCATED ELECTED OFFICIALS REGARDING THE IMPACT HOSPITALS HAVE IN THE QUALITY OF LIFE AND ECONOMIC VITALITY OF COMMUNITIES ACROSS THE COMMONWEALTH. HAP PRESENTED THE HOSPITAL ECONOMIC IMPACT STUDY TO THE PENNSYLVANIA SENATE ECONOMY, BUSINESS AND JOBS CAUCUS. HAP, THROUGH THE SUPPORT OF SENATOR CASEY, CONDUCTED TELECONFERENCES WITH MEMBER HOSPITALS AND LEGISLATORS' STAFF TO ADDRESS DRUG SHORTAGES BY PROVIDING A FACT SHEET WITH PENNSYLVANIA-SPECIFIC INFORMATION. HAP ADVOCATED ON BEHALF OF PENNSYLVANIA'S HOSPITALS AND HEALTH SYSTEMS FOR APPROPRIATE IMPLEMENTATION OF PAYMENT REFORMS UNDER THE AFFORDABLE CARE ACT IMPACTING MEDICAID, MEDICARE AND COMMERCIAL INSURANCE. HAP ISSUED ANALYZED COMMENTS TO CMS, NATIONAL ASSOCIATION OF INSURANCE COMMISSIONS, THE IRS, FEDERAL TRADE COMMISSION, DEPARTMENT OF JUSTICE AND OFFICE OF THE INSPECTOR GENERAL, IN PROPOSED REGULATIONS AND PROVISIONS UNDER THE AFFORDABLE CARE ACT, INCLUDING ACCOUNTABLE CARE ORGANIZATIONS, VALUE-BASED PURCHASING AND HEALTH INSURANCE EXCHANGES. HAP CONDUCTED A HEALTH REFORM EDUCATION SERIES TO ASSIST HOSPITAL LEADERS TO ENHANCE CLINICAL INTEGRATION AND OPERATION PERFORMANCE. CONDUCTED WEBINARS TO ASSIST HOSPITALS UNDERSTAND DATA THAT WILL IMPACT MEDICARE PAYMENTS AND VALUE-BASED PURCHASING. HAP PARTNERED WITH THE HEALTH CARE IMPROVEMENT FOUNDATION, PENNSYLVANIA PATIENT SAFETY AUTHORITY, QUALITY INSIGHTS OF PENNSYLVANIA, AND THE PENNSYLVANIA HEALTH CARE QUALITY ALLIANCE TO SUCCESSFULLY SUBMIT A PROPOSAL TO CMS AS A STATEWIDE HOSPITAL ENGAGEMENT CONTRACTOR UNDER THE FEDERAL PARTNERSHIP FOR PATIENTS PROGRAM IN REDUCING HARM FROM SERIOUS EVENTS AND PREVENT READMISSIONS. HAP CONDUCTED THE FIRST CARE TRANSITIONS FORUM TO PROVIDE STRATEGIES TO IMPROVE CARE ACROSS THE CONTINUUM AND TO REDUCE HOSPITAL READMISSIONS. HAP LED THE COMPREHENSIVE UNIT-BASED SAFETY PROGRAM (CUSP) TO ADDRESS CENTRAL LINE BLOODSTREAM ASSOCIATED INFECTIONS AND WORKED WITH THE PENNSYLVANIA PATIENT SAFETY AUTHORITY TO STANDARDIZE DEFINITIONS FOR REPORTING PATIENT FALLS TO ENABLE HOSPITALS TO MONITOR AND COMPARE TRENDS. 0 1 0 1 0 0 0 0 0 1 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 29 0 1 82 1 0 0 0 0 1 1 0 X 23 23 0 0 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X MICHAEL A SUCHANICK 7175649200 4750 LINDLE ROAD HARRISBURG PA 17111 X PAUL BACHARACH 1.40 X X 0 0 0 GARRY L SCHEIB 1.20 X X 0 0 0 JAN E FISHER 1.20 X X 0 0 0 DON V BARBUTO 0.60 X 0 0 0 SCOTT A BECKER 1.20 X 0 0 0 ALAN BRECHBILL 0.60 X 0 0 0 CORNELIO R CATENA 0.60 X 0 0 0 LESLIE C DAVIS 1.20 X 0 0 0 MICHAEL J FARRELL JR 0.60 X 0 0 0 STUART H FINE 1.20 X 0 0 0 BARRY R FREEDMAN 0.60 X 0 0 0 KATHLEEN KINSLOW 0.60 X 0 0 0 JOHN J LYNCH III 0.60 X 0 0 0 NORMAN F MITRY 0.60 X 0 0 0 JOHN R MORAHAN 1.20 X 0 0 0 EDWARD C PITCHFORD 0.60 X 0 0 0 JOAN K RICHARDS 1.20 X 0 0 0 RICHARD L SEIM 0.60 X 0 0 0 JOHN E SIMODEJKA 1.20 X 0 0 0 GLENN STEELE JR 0.60 X 0 0 0 MARK STENSAGER 1.20 X 0 0 0 H RAY WELCH JR 1.20 X 0 0 0 STEVEN JOHNSON 1.20 X X 0 0 0 CAROLYN F SCANLAN 36.90 X 806882 0 205914 MICHAEL A SUCHANICK 35.60 X 316335 0 49448 KENNETH BRAITHWAITE 37.50 X 272830 0 37372 JAMES M REDMOND 37.10 X 250690 0 48664 PAULA A BUSSARD 37.50 X 284028 0 55491 MICHAEL P STRAZZELLA 37.10 X 184645 0 43697 ROBERT E GREENWOOD 37.50 X 166336 0 42265 THOMAS L GRACE 37.50 X 154410 0 40941 KATHY C MEBUS 37.50 X 123067 0 20335 LYNN G LEIGHTON 37.50 X 111487 0 37164 PAMELA CLARKE 37.50 X 107929 0 13180 2778639 0 594471 13 0 1 0 DUANE MORRIS LLP 30 SOUTH 17TH STREET PHILADELPHIA PA 19103 LEGAL SERVICES 570766 GR SPONAUGLE & SONS INC 4391 CHAMBERS HILL RD HARRISBURG PA 17111 HVAC 203708 ANDCULTURE 200 LOCUST ST STE 30 HARRISBURG PA 17101 WEBSITE MAINTENANCE 143488 KURT MECKES DBA SERVICE RIGHT COMMERCIAL 2401 PAXTON RD HARRISBURG PA 17112 BUILDING MAINTENANCE 100334 4 11848 65085 76933 PROGRAM FEES 900099 9303112 9303112 GROUP PURCHASING 900099 733431 733431 MANAGEMENT FEES 561000 102000 102000 HEALTH CARE BENEFITS 900099 37552 37552 MEETING FUNCTIONS 900099 5802 5802 10181897 438775 438775 410646 658190 -247544 -247544 -247544 2151943 25333 2052342 0 99601 25333 124934 124934 CASH SURRENDER VALUE A 900099 35972 35972 MISCELLANEOUS INCOME 900099 1019 1019 36991 10611986 10181897 0 353156 5500 2360627 3477632 489108 646216 436046 544579 55402 22078 163517 231206 135647 135771 186165 305379 3639 469821 56701 BAD DEBT EXPENSE 157508 MEDIA SERVICES 46738 PROFESSIONAL DUES 33650 SUBSCRIPTIONS 31486 25568 10019984 741417 1182 724196 1975385 17500 625860 666013 86847 66684 201152 124927 13593062 9669554 3936171 3923508 14907342 14221684 1670654 3491503 2384718 2500609 25278357 26988995 4815012 6486065 137117 136254 32688 34249 4984817 6656568 X 20293540 20332427 20293540 20332427 25278357 26988995 X 592002 -553115 X 0 1 1 X 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 7666576 1913568 1913568 1919711 -6143 851675 851675 8874231 6462326 2411905 431394 77337 354057 2893483 2763895 129588 542279 365996 176283 3923508 HAP SERVICES, INC. 309785 C PHICO GROUP, INC. 3181718 C 3491503 ACCRUED INTEREST RECEIVABLE 4 ACCOUNTS RECEIVABLE FROM AFFILIATES & SUBSIDIARIES 30825 SECURITY DEPOSITS 100 CASH SURRENDER VALUE OF OFFICERS' LIFE INSURANCE 2469680 2500609 POST-RETIREMENT BENEFIT OBLIGATION 29036 ACCOUNTS PAYABLE TO AFFILIATES & SUBSIDIARIES 5213 34249 10611986 10019984 592002 -384141 -168974 -553115 38887 10966019 -384141 79984 -304157 11270176 -658190 -658190 10611986 10678174 658190 658190 10019984 0 10019984 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ASSOCIATION ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES USING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD IS MET. MANAGEMENT DETERMINED THERE WERE NO UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN 2011. HAP'S FEDERAL RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX AND EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURNS FOR 2010, 2009, AND 2008 REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN CASH SURRENDER VALUE OF LIFE INSURANCE 79,984. EQUITY IN INCOME OF SUBSIDIARY 1,820,851. PENSION AND POST-RETIREMENT BENEFIT LIABILITY ADJUSTMENTS -2,069,809. TOTAL TO SCHEDULE D, PART XI, LINE 8: -168,974. PART XII, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN CASH SURRENDER VALUE OF LIFE INSURANCE 79,984. PART XII, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -658,190. PART XIII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 658,190. 1 X PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE ORGANIZATION ONLY PROVIDES GRANTS AND ASSISTANCE TO OTHER TAX-EXEMPT ORGANIZATIONS. X 1 1 X X X X X 0 1 0 CAROLYN F SCANLAN 509296 0 271556 0 26030 0 155422 0 50492 0 1012796 0 136582 0 MICHAEL A SUCHANICK 253748 0 51002 0 11585 0 39450 0 9998 0 365783 0 20195 0 KENNETH BRAITHWAITE 220508 0 43268 0 9054 0 11400 0 25972 0 310202 0 0 0 JAMES M REDMOND 188688 0 49861 0 12141 0 27610 0 21054 0 299354 0 11343 0 PAULA A BUSSARD 238395 0 37914 0 7719 0 23993 0 31498 0 339519 0 0 0 MICHAEL P STRAZZELLA 177546 0 6494 0 605 0 16518 0 27179 0 228342 0 0 0 ROBERT E GREENWOOD 156039 0 6775 0 3522 0 14870 0 27395 0 208601 0 0 0 THOMAS L GRACE 146410 0 5876 0 2124 0 13849 0 27092 0 195351 0 0 0 PART I, LINE 1A TAXABLE COUNTRY CLUB DUES: CAROLYN F. SCANLAN - $8,053 KENNETH BRAITHWAITE - $1,260 JAMES M. REDMOND - $6,080 PART I, LINE 4B TAXABLE CAPITAL ACCUMULATION BENEFIT PAID IN 2011: CAROLYN F. SCANLAN - $136,582 MICHAEL A. SUCHANICK - $20,195 JAMES M. REDMOND - $11,343 THE HAP EXECUTIVE BENEFIT PLAN PROVIDES BENEFITS TO EXECUTIVES THROUGH A FLEXIBLE BENEFIT OPTION. THE FLEXIBLE BENEFIT ALLOWANCES ARE CREDITED TO A TAX-DEFERRED CAPITAL ACCUMULATION ACCOUNT. ACCUMULATIONS ARE PAYABLE AT ELECTED VESTING DATE, DEATH, TERMINATION DUE TO DISABILITY OR INVOLUNTARY TERMINATION WITHOUT CAUSE. IF THE EXECUTIVE LEAVES FOR ANY REASON, A SUBSTANTIAL RISK OF FORFEITURE IN THE FORM OF A 24-MONTH NON-COMPETITION AGREEMENT APPLIES. CONTRIBUTIONS AND EARNINGS ARE TAX SHELTERED UNTIL THE PAYOUT DATE. HAP RETAINS OWNERSHIP OF THE INVESTMENTS WITH THE CAPITAL ACCUMULATION ACCOUNTS. IF HAP BECOMES INSOLVENT, EXECUTIVES ARE UNSECURED CREDITORS AND WILL HAVE NO PREFERRED CLAIM TO ANY ASSETS. FORM 990, PART VI, SECTION A, LINE 6 MEMBERSHIP OF HAP IS DIVIDED INTO THE FOLLOWING CLASSES: 1) GENERAL MEMBERS - INSTITUTIONS, ENTITIES OR ORGANIZATIONS WHICH SUPPORT THE MISSION AND PURPOSE OF HAP TO REPRESENT AND SERVE THE MEMBERSHIP IN ITS ROLE OF PROVIDING QUALITY HEALTH CARE TO ALL THE PEOPLE OF THE COMMONWEALTH AND TO THE IMPROVEMENT OF COMMUNITY-BASED HEALTH THROUGH COST-EFFECTIVE ACCESS TO AN INTEGRATED CONTINUUM OF CARE. GENERAL MEMBERS SHALL BE THE ONLY VOTING MEMBERSHIP CLASS. 2) ASSOCIATE MEMBERS - INSTITUTIONS AND ORGANIZATIONS NOT ELIGIBLE FOR GENERAL MEMBERSHIP, BUT WHICH SUPPORT THE PURPOSE AND OBJECTIVES OF HAP. AT EVERY MEETING OF MEMBERS, EACH GENERAL MEMBER SHALL HAVE ONE VOTE. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED INTERNALLY BY HAP. HAP'S TAX ADVISORS THEN REVIEW THE FORM 990 AND MAKE ANY NECESSARY CHANGES. AFTER THE TAX ADVISORS' REVIEW, THE FORM 990 IS GIVEN TO THE AUDIT AND FINANCE COMMITTEE OF HAP FOR A DETAILED REVIEW, WITH A COPY GIVEN TO ALL BOARD MEMBERS. ONCE THE AUDIT AND FINANCE COMMITTEE HAS REVIEWED, HAP'S TAX ADVISORS PREPARE THE FINAL FORM 990 AND SEND TO HAP FOR SIGNATURES AND FILING, ALONG WITH A PUBLIC INSPECTION COPY. FORM 990, PART VI, SECTION B, LINE 12C A WRITTEN CONFLICT OF INTEREST POLICY IS DISTRIBUTED TO ALL BOARD MEMBERS ON AN ANNUAL BASIS AND TO EMPLOYEES BI-ANNUALLY WITH REQUESTED DISCLOSURES. THE PURPOSE OF THE CONFLICTS OF INTEREST POLICY (THE "CONFLICTS POLICY") IS TO PROTECT THE INTEREST OF THE HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA ("ASSOCIATION") WHEN IT CONTEMPLATES ENTERING INTO A TRANSACTION OR ARRANGEMENT THAT MIGHT BENEFIT A PRIVATE INTEREST OF AN OFFICER OR DIRECTOR OF HAP. THE CONFLICTS POLICY IS INTENDED TO SUPPLEMENT, BUT NOT REPLACE, ANY APPLICABLE STATE LAWS GOVERNING CONFLICTS OF INTEREST APPLICABLE TO NONPROFIT CORPORATIONS. IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF HIS OR HER FINANCIAL INTEREST AND MUST BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS AND MEMBERS OF COMMITTEES AND BOARD-DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. AN INTERESTED PERSON IS DEFINED AS ANY DIRECTOR, PRINCIPAL OFFICER, OR MEMBER OF A COMMITTEE WITH BOARD-DELEGATED POWERS WHO HAS A DIRECT OR INDIRECT FINANCIAL INTEREST. IF A PERSON IS AN INTERESTED PERSON WITH RESPECT TO THE ASSOCIATION OR ANY OF THE ASSOCIATION'S AFFILIATES, HE OR SHE IS AN INTERESTED PERSON WITH RESPECT TO THE ASSOCIATION AND ALL OF ITS AFFILIATES. AFTER DISCLOSURE OF THE FINANCIAL INTEREST AND ALL MATERIAL FACTS, AND AFTER DISCUSSION WITH THE INTERESTED PERSON, HE/SHE SHALL LEAVE THE BOARD OR COMMITTEE MEETING WHILE THE DETERMINATION OF A CONFLICT OF INTEREST IS DELIBERATED AND VOTED UPON. THE REMAINING BOARD OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. PROCEDURES FOR ADDRESSING THE CONFLICT OF INTEREST: -AN INTERESTED PERSON MAY MAKE A PRESENTATION CONCERNING THE ACTUAL OR POTENTIAL CONFLICT OF INTEREST AT THE BOARD OR COMMITTEE MEETING, BUT AFTER SUCH PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND VOTE ON, THE TRANSACTION OR ARRANGEMENT THAT RESULTS IN THE CONFLICT OF INTEREST. -THE CHAIRPERSON OF THE BOARD OR COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. -AFTER EXERCISING DUE DILIGENCE, THE BOARD OR COMMITTEE SHALL DETERMINE WHETHER THE ASSOCIATION CAN OBTAIN A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT WITH REASONABLE EFFORTS FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. -IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY ATTAINABLE UNDER CIRCUMSTANCES THAT WOULD NOT AVOID A CONFLICT OF INTEREST, THE BOARD OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS OR COMMITTEE MEMBERS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN THE ASSOCIATION'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO THE ASSOCIATION, AND SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT IN CONFORMITY WITH SUCH DETERMINATION. VIOLATIONS OF THE CONFLICTS POLICY: -IF THE BOARD OR COMMITTEE HAS REASONABLE CAUSE TO BELIEVE THAT AN INTERESTED PERSON HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL INFORM THE INTERESTED PERSON OF THE BASIS FOR SUCH BELIEF AND AFFORD THE INTERESTED PERSON AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. -IF, AFTER HEARING THE RESPONSE OF THE INTERESTED PERSON AND MAKING SUCH FURTHER INVESTIGATION AS MAY BE WARRANTED IN THE CIRCUMSTANCES, THE BOARD OR COMMITTEE DETERMINES THAT THE INTERESTED PERSON HAS IN FACT FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. FORM 990, PART VI, SECTION B, LINE 15 IN FULFILLMENT OF HAP'S COMPENSATION COMMITTEE'S RESPONSIBILITIES (COMPRISED OF HAP BOARD MEMBERS), SPECIFICALLY IN REGARD TO THE CEO'S COMPENSATION, EACH YEAR HAP'S EXECUTIVE COMPENSATION COMMITTEE AND BENEFITS CONSULTANT, INTEGRATED HEALTHCARE STRATEGIES ("IHS"), CONDUCTS A COMPREHENSIVE REVIEW OF CEO TOTAL COMPENSATION. TO EVALUATE THE TOTAL COMPENSATION PROGRAM FOR HAP'S CEO, IHS ANNUALLY: - COLLECTS AND REVIEWS BACKGROUND DATA, INCLUDING FINANCIAL DATA AND CURRENT COMPENSATION INFORMATION; - COMPILES COMPREHENSIVE DATA FOR CEOS WITH HAP'S SELECT PEER GROUP; - COMPARES THE CEO'S CURRENT SALARY, INCENTIVE BENEFIT AND TOTAL COMPENSATION LEVELS TO PEER GROUP MEDIAN LEVELS; AND - PREPARES, FOR THE COMMITTEE'S REVIEW, A MEMORANDUM DOCUMENTING FINDINGS. THE PROCESS FOR SETTING OTHER OFFICERS' AND KEY EMPLOYEES' COMPENSATION IS THE SAME AS ABOVE. IN FULFILLMENT OF THE COMPENSATION COMMITTEE'S RESPONSIBILITIES, IN REGARD TO OFFICERS' AND OTHER KEY EMPLOYEES' COMPENSATION EACH YEAR, THE EXECUTIVE COMPENSATION AND BENEFITS CONSULTANT, IHS, CONDUCTS A COMPREHENSIVE REVIEW OF OFFICERS' AND OTHER KEY EMPLOYEES' TOTAL COMPENSATION. TO EVALUATE THE TOTAL COMPENSATION PROGRAM FOR OFFICERS AND KEY EMPLOYEES, IHS ANNUALLY: - COLLECTS AND REVIEWS BACKGROUND DATA, INCLUDING FINANCIAL DATA AND CURRENT COMPENSATION INFORMATION; - COMPILES COMPENSATION DATA FOR THE OFFICERS AND KEY EMPLOYEES WITH A SELECT PEER GROUP; - COMPARES THE OFFICERS' AND KEY EMPLOYEES' CURRENT SALARY, INCENTIVE BENEFIT AND TOTAL COMPENSATION LEVELS TO PEER GROUP MEDIAN LEVELS; AND - PREPARES, FOR THE COMMITTEE'S REVIEW, A MEMORANDUM DOCUMENTING FINDINGS. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VII, LINE 1A, COLUMN (B) AVERAGE HOURS PER WEEK LISTED IN PART VII ARE FOR THIS LEGAL ENTITY ONLY. BOARD MEMBERS, OFFICERS AND CERTAIN KEY EMPLOYEES ALSO DEVOTE TIME TO THE RELATED ORGANIZATIONS LISTED ON SCHEDULE R. TOTAL AVERAGE HOURS PER WEEK FOR ALL RELATED ORGANIZATIONS ARE AS FOLLOWS: BOARD MEMBERS - .6 HOURS PER WEEK EXECUTIVE COMMITTEE - .6 HOURS PER WEEK PRESIDENT & CEO - .6 HOURS PER WEEK SECRETARY & COO - 1.9 HOURS PER WEEK CHAIR - .6 HOURS PER WEEK SENIOR VICE PRESIDENTS JAMES M. REDMOND AND MICHAEL P. STRAZZELLA - .4 HOURS PER WEEK CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -384,141. CHANGE IN CASH SURRENDER VALUE OF LIFE INSURANCE 79,984. EQUITY IN INCOME OF SUBSIDIARY 1,820,851. PENSION AND POST-RETIREMENT BENEFIT LIABILITY ADJUSTMENTS -2,069,809. TOTAL TO FORM 990, PART XI, LINE 5: -553,115. HOSPITAL MANAGEMENT SERVICES LLC 4750 LINDE ROAD HARRISBURG PA 17111 274654734 ADMINISTRATIVE SUPPORT PA 1013502 220866 HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA HAP EDUCATION & RESEARCH SERVICES 4750 LINDLE ROAD HARRISBURG PA 17111 251114897 EDUCATION PA 501(C)(3) LINE 9 HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA 1 HAPAC - STATE POLITICAL ACTION COMMITTEE 4750 LINDLE ROAD HARRISBURG PA 17111 232125904 LOBBYING PA 527 N/A HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA 1 HAPAC - FEDERAL 4750 LINDLE ROAD HARRISBURG PA 17111 232199700 LOBBYING PA 527 N/A HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA 1 HAP SERVICES INC 4750 LINDLE ROAD HARRISBURG PA 17111 232443175 PRINTING & DESIGN PA HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA C -41500 312785 1.00000 PHICO GROUP INC 4750 LINDLE ROAD HARRISBURG PA 17111 232325537 INSURANCE PA HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA C 1862351 4946384 1.00000 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 1 0 0 HAP EDUCATION & RESEARCH SERVICES N 196532 COST PHICO GROUP INC K 66000 COST