2012-06-19T08:47:26-05:00 2011-08-31 Grant Thornton LLP 175 W Jackson Blvd Chicago IL 60604 990 2010-09-01 411456897 HealthEast St John's Hospital HEAL 6512321000 PO Box 64624 St Paul MN 551640624 Michael F Nass 6512322300 2012-06-19 0 Scott Thompsett 3128560200 X 2010 2016-02-24 21:20:13Z Kathryn Correia 559 Capitol Blvd St Paul MN 55103 260469956 0 X www.healtheast.org X 1983 MN St. John's is an acute care hospital. The services provided support the hospital's health care mission to provide high quality, cost effective compassionate health care for Twin Cities East Metro residents. Hospital revenue includes payment from the Medicare and Medicaid programs. The medical services relate directly to the exempt purpose of caring for sick, infirm, aged and injured persons regardless of their race, color, creed, religion, national origin, sex, sexual preference, marital status, status with regard to public assistance, disability or age. This organization provides emergency and medically necessary non-emergency services regardless of ability to pay. Additionally, this organization offers financial aid for eligible services in the form of free or discounted care to those low income, underinsured or uninsured individuals who meet qualification criteria. 15 12 1868 407 359440 -11565 413719 202671 252938810 255947616 1093215 1266345 2217057 2495300 256662801 259911932 0 0 0 0 109614309 109592296 0 0 0 127432523 130391705 237046832 239984001 19615969 19927931 111723429 110365485 36471433 34085328 75251996 76280157 X Rooted in Judeo-Christian values, our mission is high quality, compassionate, cost effective health care for the communities we serve. 0 0 197730229 257961689 St. John's Hospital is a full-service, acute care hospital offering superior diagnostic and therapeutic care to the community for more than 95 years. As a full service, acute care facility, St. John's is committed to providing superior health care to our growing communities. This 184-bed facility offers a wide variety of diagnostic and therapeutic services, including the following: *Emergency Care *Maternity Care *Heart Care *Orthopaedic Care *Medical/Surgical *Critical Care (ICU) *Cancer Care Center *Radiology Care *Breast Care Center *Rehabilitation *Stroke Care *Medical Laboratory From the moment patients and visitors walk into St. John's, they experience the warm, inviting atmosphere created by the physical environment and the caring, personal services offered by our staff. As a hospital dedicated to a growing community, caring for patients is the highest priority for the physicians, nurses and staff at St. John's. Patients trust the hospital to provide advanced treatments and services with a caring, personal touch. State-of-the-art technology, specialized physicians, nurses and staff, and a wide range of services combine seamlessly with St. John's innovative healing environment and personal, compassionate health care delivery. St. John's Hospital FY 2011 Statistics: *Hospital Inpatient Admissions: 14,197 *Births: 2,930 *Outpatient Visits: 210,321 *Emergency Department Visits: 38,976 St. John's Hospital is part of the HealthEast Care System. The HealthEast Care System is a community-focused, non-profit health care system that provides innovative technology, compassionate care and a full spectrum of family health services. In 1986, the leaders of seven hospitals in St. Paul blended their Baptist, Roman Catholic and Lutheran cultures to become HealthEast Care System, united in pursuit of a common mission built on Judeo-Christian values. Today, HealthEast Care System includes four hospitals, as well as 14 clinics, outpatient services, home care, pharmacies and medical transportation. Practicing financial responsibility, HealthEast Care System is the largest, locally-owned health care organization in the St. Paul/Minneapolis East Metro area. *Mission: Rooted in Judeo-Christian values, our mission is high-quality, compassionate, cost effective health care for the communities we serve. *Values: HealthEast Care System values originate in the tradition of its sponsor organizations, forming the foundation for the Mission and Vision of the HealthEast Care System. *Life: Life is a gift to be valued highly. *Compassion: Caring attends to physical, emotional and spiritual dimensions of persons. *Respect: Each person is unique and deserving of respect. *Community: We exist to serve our community. *Faith-Based Philosophy: By sustaining HealthEast Care System's Christian heritage and identity, we provide compassionate service that respects the dignity of each person and welcomes all faith traditions, cultures and communities. *Vision: Creating the best health care experience through a passion for caring and service. *Goal: We are the first choice for customers, physicians and employees. *Milestone Goal: Building on our benchmark performance, HealthEast will be a national leader in clinical quality, patient experience and cost effectiveness - the best value - by 2015. HealthEast Care System fiscal year 2011 statistics: *Total Hospital Inpatient Admissions: 35,956 *Total Outpatient Visits: 420,134 *Total Emergency Department Visits: 89,707 *Lab tests: over 2.75 Million *Home Care Patients Served: 7,402 *Home Care Patient Visits: 62,661 *Health Alert Subscribers: 3,517 *Clinic Professional Visits: 775,631 *Clinic Ancillary Services: 988,719 *Clinic Patients: 140,912 *Patient Transports: 30,280 *Employees: 7,324 197730229 1 1 0 1 0 0 0 0 0 0 1 0 1 0 1 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 1 1 1 1 0 0 1 X 0 0 1868 1 1 1 0 0 0 0 0 0 0 0 0 X 15 12 0 0 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 MN X Michael F Nass 6512322300 559 Capitol Boulevard St Paul MN 55103 X Larry K Ainsworth 0.00 X 0 25000 0 Dianne E Arnold 0.00 X 0 28000 0 Diane M Berthel 0.00 X 0 34000 0 Patrick J Donovan 0.00 X 0 36000 0 Albert E Eggert 0.00 X 0 33000 0 John R Finnegan Jr MD 0.00 X 0 0 0 Joan A Grzywinski 0.00 X 0 55250 0 Fred Harris Jr 0.00 X X 0 65000 0 Roland L Hayes 0.00 X X 0 37000 0 Anne M Pearson MD 0.00 X 0 279038 63960 Leonard M Randolph Jr MD 0.00 X 0 27833 0 Sister Marie H Seiter CSJ 0.00 X 0 0 0 David V Taylor PHD 0.00 X 0 27833 0 Jone M Tiffany 0.00 X 0 0 0 Laure Waschbusch MD 6.00 X 30000 0 900 James W Wiltz 0.00 X 0 26000 0 Timothy H Hanson 0.00 X X 0 1105397 451130 Mary L Arnold 0.00 X 0 162564 58055 Catherine J Barr 0.00 X 0 345447 106229 Sara Criger 0.00 X 0 422928 149730 Brendon Cullinan MD 0.00 X 0 0 0 Shirley Germann 0.00 X 0 177904 45934 Robert D Gill 0.00 X 0 538108 171169 Roger E Green 0.00 X 0 329824 149754 Scott W Hinrichs 0.00 X 0 265060 132093 Stephen J Kolar MD 0.00 X 0 490732 162139 Milton P McClurkan Jr 0.00 X 0 246828 23367 Michael F Nass 0.00 X 0 260809 154280 Scott L North 40.00 X 442425 0 133249 Brian Patty MD 0.00 X 0 421854 225798 John Piatkowski MD 0.00 X 0 292147 132685 Mary F Pynn 0.00 X 0 313647 125270 Julie A Schmidt 0.00 X 0 423068 147776 Thomas A Schmitt 0.00 X 0 298256 95471 Ann M Schrader 0.00 X 0 707027 176098 Mindy A Smith 40.00 X 448058 0 133312 Leslie R Stern 0.00 X 0 212303 43947 Virginia Sullivan 0.00 X 0 304439 66622 Craig A Svendson MD 0.00 X 0 374716 157581 John Kvasnicka MD 40.00 X 375907 0 71391 Paul J Sovell MD 40.00 X 347806 0 76711 John T Filipovich MD 40.00 X 347628 0 79502 Peter J Tanghe MD 40.00 X 326898 0 80228 Paul M McCormick MD 40.00 X 317615 0 74935 June A Kim MD 0.00 X 0 784864 76105 Puneet S Cheema MD 0.00 X 0 1241043 105170 Kevin P Mulvey MD 0.00 X 0 720861 88753 Jonathan C Grimes MD 0.00 X 0 321803 73587 2636337 11435583 3832931 89 1 1 1 Parsons Electric LLC NW 9562 PO BOX 1450 Minneapolis MN 55485 Elelctrical Services 2310326 University of Minnesota 420 Delaware Street SE Box 381 Minneapolis MN 55455 Medical Services 1630921 Associated Anesthesiologists CM-9710 PO Box 70870 St Paul MN 55170 Medical Services 975664 Health Systems Coop Laundries 55 East Fifth Street Suite 960 St Paul MN 55101 Laundry Services 956975 Philips Healthcare PO BOX 100355 Atlanta GA 30384 Equipment Repair Services 899543 35 202671 202671 Patient Revenue 622110 249129741 249129741 Related Entity Rental 531120 4479663 4479663 Surgery Center Service 621400 1938002 1938002 Lab Services 621500 331888 17946 313942 Patient Education 611710 43093 43093 25229 25229 255947616 675529 675529 91787 91787 91787 91787 1148840 558024 590816 590816 590816 Cafeteria Revenue 722310 1330672 1330672 Cash Discounts & Rebat 900099 664849 664849 Gift Shop Revenue 453220 194246 194246 213746 168248 45498 2403513 259911932 257991689 359440 1358132 1013047 1013047 83782296 80428590 3353706 6489847 6230066 259781 12340315 11846347 493968 5966791 5659516 307275 6660 4000 2660 6463 6463 9531 9531 24883494 19668390 5215104 368571 50200 318371 49173389 47557706 1615683 3305620 3939 3301681 6566670 6562676 3994 152427 137025 15402 149549 138533 11016 4016971 4016971 4786364 4742754 43610 1882490 132571 1749919 HealthEast Mgmt Fees 24148233 24148233 Bad Debt Expense 4846681 4846681 Minnesota Care Tax 2933497 2933497 Medical Care Surcharge 2321847 2321847 Memberships & Sponsorsh 266353 46365 219988 566895 386561 180334 239984001 197730229 42253772 0 304764 12016 52091 29513 27822295 28082647 9436 39899 2155020 2195481 791382 907563 143968369 79599647 66058932 64368722 13460961 13447740 1068548 1281904 111723429 110365485 12998310 10846870 22668860 21521069 861780 804263 855609 36471433 34085328 X 75251996 76280157 75251996 76280157 111723429 110365485 X 19927931 -18899770 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 9531 9531 0 Explanation of Other Lobbying Activities: Part II-B, Line 1i: The organization pays annual memebership dues to the American Hospital Association and the Minnesota Hospital Association. A portion of these annual dues are determined to be used for lobbying purposes. 2995111 2995111 89346725 44525898 44820827 4493842 2460006 2033836 40027603 28066459 11961144 7105088 4547284 2557804 64368722 Investment in Partnerships 13447740 C 13447740 Asbestos Abatement Liability 855609 855609 The financial statements did not include a footnote addressing the organization's liability for uncertain tax positions under FIN 48 because the organization did not have any such liabilities to report. 1 1 X 1 X 1 X 1 1 1 0 1 1 2394242 2394242 0.01000 27302593 21250048 6052545 0.02520 6576763 3772095 2804668 0.01170 36273598 25022143 11251455 0.04690 100040 8766 91274 0.00040 3327602 836496 2491106 0.01040 896818 896818 0.00370 4324460 845262 3479198 0.01450 40598058 25867405 14730653 0.06140 56738 22017 34721 0.00010 5842 5842 0.00000 158476 102620 55856 0.00020 221056 124637 96419 0.00030 1 1564680 0 83956762 97432504 -13475742 X 1 1 1 HealthEast Surgery Center-Maplewood LLC Surgery Center 0.74500 0.00000 0.15500 2 Maplewood Professional Building Limited Partnership Rental Real Estate 0.12600 0.00000 0.11400 1 1 HealthEast St John's Hospital

1575 Beam Avenue Maplewood MN 55109

X X X HealthEast St John's Hospital 1 16 HealthEast Midway Outpatient Center

1700 University Ave West St Paul MN 55104

Outpatient Services Center HealthEast Optimum Rehabilitation-Maplew

1570 Beam Avenue Suite 200 Maplewood MN 55109

Outpatient Rehabilitation Clinic HealthEast Optimum Rehabilitation-Univer

1690 University Ave W Suite 430 St Paul MN 55104

Outpatient Rehabilitation Clinic HealthEast Optimum Rehabilitation-Oakdal

1099 Helmo Ave Suite 110 Oakdale MN 55128

Outpatient Rehabilitation Clinic HealthEast Optimum Rehabilitation-Woodbu

1825 Woodwinds Drive Woodbury MN 55125

Outpatient Rehabilitation Clinic HealthEast Optimum Rehabilitation-Eagan

1215 Town Centre Drive Suite 100 Eagan MN 55123

Outpatient Rehabilitation Clinic HealthEast Surgery Center-Maplewood

1655 Beam Avenue Maplewood MN 55109

Outpatient Surgery Center HealthEast Surgery Center-Midway

1700 University Ave West St Paul MN 55104

Outpatient Surgery Center HealthEast Pain Care - Midway

1700 University Ave West St Paul MN 55104

Outpatient Pain Care Clinic HealthEast Sleep Center - Maplewood

3100 Kennard St Suite 200 Maplewood MN 55109

Outpatient Sleep Center HealthEast Radiology - Midway

1700 University Ave West St Paul MN 55104

Outpatient Radiology Center HealthEast Sleep Center - Eagan

1215 Town Centre Drive Suite 200 Eagan MN 55123

Outpatient Sleep Center HealthEast Vascular Center - Maplewood

1570 Beam Avenue Suite 200 Maplewood MN 55109

Outpatient Vascular Center HealthEast Vascular Center - St Paul

17 W Exchange St Suite 600 St Paul MN 55102

Outpatient Vascular Center HealthEast Vascular Center - Woodwinds

1875 Woodwinds Dr Suite 240 Woodbury MN 55125

Outpatient Vascular Center HealthEast Medical Imaging LLC

3640 Talmage Circle Suite 100 Vadnais Heights MN 55110

Outpatient Imaging Center Part I, Line 7: Column (f) Percent of total expenses was calculated as follows: "Net community benefit expense" in column E was divided by the amount in Part IX, Line 25, column (A) of the Form 990 less reported bad debt expense plus management expenses allocated from HealthEast Care System and a joint venture proportionate share of expenses. Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 4846681. Part II: HealthEast St. John's Hospital promotes the health of the community it serves by providing community building activities. One such activity is the preparation and packaging of nutritious lunch meals for the Salvation Army Adult Day Care program. These meals, which include special diets, are for those who are disadvantaged or disabled and are unable to provide for themselves. The meals are picked up at St. John's Hospital and brought to the Salvation Army Adult Day Care program where they are served by their staff.Another activity HealthEast St. John's Hospital provides is free access to its Passport Program through their parent organization, HealthEast Care System. This program is dedicated to enhancing the quality of life for all as we age. We lead positive social change and deliver value to members through information, advocacy, lifelong learning, self-development and fulfillment. We accomplish this goal by offering social opportunities, educational seminars, opportunities to meet other members and volunteer opportunities. Part III, Line 4: The following is the text of the footnote to the organization's financial statements that describes bad debt expense: Net patient accounts receivable consist of gross charges for patient services less contractual adjustments and other reductions for anticipated uncollectible amounts. The allowance for doubtful patient accounts receivable is based upon management's assessment of historical and expected net collections considering business and economic conditions, trends in health care coverage, and other collection indicators. Throughout the year, management assesses the adequacy of the allowance for doubtful accounts based upon historical write-off experience by payor category. The results of this review are used to make any modifications to the allowance for doubtful accounts. After satisfaction of amounts due from insurance and other third-party payors, HealthEast Care System follows established guidelines for placing certain past-due patient balances with collection agencies.To arrive at the Form 990, Schedule H, Part III, Line 2 bad debt expense "at cost", the organization has applied a ratio of patient care cost to charges (cost to charge ratio) to an estimated patient charge amount included in bad debt after removing the anticipated discounts.Certain patient accounts are written off to bad debt because the organization does not have sufficient information to determine if the patient would qualify for free care or financial aid. Therefore, it is possible that some bad debt is actually charity care. However, if a patient account is written off to bad debt and the collection agency later determines that the patient would have qualified for free care or financial aid, then the bad debt expense is reclassified to charity care.Part III, Line 1: The organization reports bad debt in accordance to Healthcare Financial Management Association (HFMA) Statement No. 15 to the extent that HFMA Statement No. 15 follows the Generally Accecpted Accounting Principles (GAAP) for the reporting of bad debt. Part III, Line 8: HealthEast St. John's Hospital believes that at least some portion of the costs we incur in excess of payments received from the Federal government for providing medical services to Medicare enrollees and beneficiaries under the Federal Medicare Program (shortfall or Medicare shortfall) constitutes a community benefit. Providing these services clearly lessens the burdens of the government by alleviating the Federal government from having to directly provide these medical services. As demonstrated and calculated on Form 990, Schedule H, Part III, Lines 5, 6 and 7, our Medicare "allowable costs" clearly exceed the payments we receive for providing these medical services under the Medicare Program. By absorbing the Medicare shortfall costs we are providing a community benefit as well as easing the burden of the Federal government having to cover these costs.To arrive at the Form 990, Schedule H, Part III, Line 6 amount we used actual Medicare charges from internal records and applied an estimated cost to charge ratio to determine the Medicare allowable costs. The estimated Medicare cost to charge ratio is the prior period Medicare Cost Report cost to charge ratio. Part III, Line 9b: The organization's collection policy and practices provide that a patient who indicates an inability to pay be provided with the information and application for the organization's financial aid policy. When a completed financial assistance application is recevied, it is processed according to the organization's policy to detemine whether the patient qualifies for discounted or free medical services. However, if a patient expires or files for bankruptcy prior to providing a completed financial assistance application, there is no way to determine if the patient qualifies for charity care.The patient handbook also provides information regarding collection policies and practices. Bills provided to patients include the following statement: "Financial Aid Availabie: It is important that you let us know if you will have trouble paying your bill. HealthEast may be able to help you get free or low-cost health coverage through community or government programs. Although HealthEast can assist you in this process, you must apply for these benefits if you are eligible." Part VI, Question 1, (Part 1, Line 6a): This organization is part of the HealthEast Care System which prepares an annual community benefit report called "HealthEast Report to the Communty" on a consolidated basis.Part VI, Question 1, (Part I, Line 7): The cost to charge ratio used to report amounts in Form 990, Schedule H, Part I, Line 7 were derived from worksheet 2, in the Schedule H, Form 990 instructions. Part VI, Line 2: HealthEast St. John's Hospital is part of HealthEast Care System which assesses community needs through a large number of connections with community partners. Through these connections HealthEast Care System is able to identify areas of importance or concern to the community and to provide the appropriate solution to provide high quality, cost effective, compassionate Health Care for Twin Cities East Metro residents as stated in our Health Care Mission. Some examples are the following:The System Director of Government and Special Populations works closely with community partners and leaders representing minorities, the elderly (65+), the poor, the chronically ill and others to identify health care needs and advocate for organizational response and provision of services. As an example, the Minnesota Department of Health requested help to address the needs of the newest refugees and partnered with the HealthEast Care System Community Health Worker Program.The Director of Cross Cultural Services acts as a liaison with community leaders to ensure that HealthEast Care System is providing culturally responsive patient care. Examples include: 1) Collaborate with community partners to offer culturally specific health care workshops.2) Participation in Stratis Health Cultural Care Connection initiative at HealthEast Rosveille Clinic and Rice Street Clinic to reduce health disparities among communities of color and underserved populations.3) HealthEast Care System employees organized and participated in a tour of the Hmong Community to better understand their cultural health care needs including barriers to care.4) Honoring Choices Minnesota: HealthEast Care System joined the Twin Cities Medical Society collaborative, a community-wide public health initiative, called Honoring Choices Minnesota. The goal of Honoring Choices Minnesota is to promote discussions about end of life choices and to assist health care organizations with the installation of a comprehensive advance care planning program. The Chief Medical Quality Officer for HealthEast Care System serves on The Honoring Choices Minnesota Advisory Committee and leads the work for the system. The System Director of Cross Cultural Services for HealthEast Care System serves on the Multicultural Advistory Board. Information on Honoring Choices and end of life conversations is now being incorporated into care management workflow across the continuum of care.The Director of Emergency Preparedness connects with regional hospital colleagues and public health and public safety officials to ensure that HealthEast Care System is prepared to respond in the event of large community disasters or public health concerns.Other HealthEast Care System departments provide outreach programs to meet the needs of the community. The following are some examples:Pathways to Better Health: A 6 week training course was developed to help persons and care givers manage their chronic disease and maximize their independence. HealthEast Care System established and coordinated programming, marketing and data collection throughout calendar year 2011. Community Health Workers: This program supports a non-skilled level of care to address the educational and psycho-social barriers to care that have potential to create unnecessary need for healthcare services. This can include assistance in navigating the healthcare system as a guide and or providing education to a patient to help them understand how to monitor their daily blood pressure.Community Care Management (MSHO): This program is a health plan subcontracted service that provides a care manager who will support the healthcare needs of patients throughout the continuum.Transition Coach: This program follows high risk patients post hospital discharge to empower them to manage their own safety in transitions in care. This program continues to support patients post acute care needs while reducing readmission rates from baseline in a high rish population.Point of Entry RN Care Managers: HealthEast Care System has continued to expand their support to patients and families to assure right care, right place and right time. HealthEast St. John's Hospital, HealthEast St. Joseph's Hospital and HealthEast Woodwinds Hospital have all created a RN care manager role for the emergency department that helps partner with physicians and families to find alternative options to care when a hospital stay is not the most appropriate place of care. This may include connections to community resources such as home care or direct transfers to behavioral health facilities and other available resources.Examples of needs identified through these programs where service change has taken place:1) During the transition coaching intervention it was determined that there was a 30-40% rate of discrepancy between what the hospital had planned for the patient medication regime and what the patient was actually taking in the home. There are many reasons for this difference, but the most prevalent was that the patient was taking the new post discharge medication along with medications previously prescribed. Feedback on this issue was brought back to the hospital safety committee who recommended discharge education should include scripting of "stop taking all other medications" in its materials. 2) In assisting limited English speaking populations with transportation to one of our healthcare facilities, we have identified that often a patient will live in a multiple housing unit. When they go to the main entrance of their building to get their ride, they end up seeing several of the same looking vehicles. The patient is not sure which vehicle is for them and is not able to easily communicate with the drivers. To help these patients detetmine which ride is for them, we contacted the transportation providers and asked them to give the patient some sort of visual identification when setting up the ride. This way the patient can look for the visual sign and be assured that they are in the correct vehicle.HealthEast Care System and related organizations began conducting a Community Health Needs Assessment as set forth in the Compilation of Patient Protection and Affordable Care Act of 2010 and the Internal Revenue Code Section 501(r).As a first step in the process, HealthEast Care System and related organizations collected secondary data. Secondary data is defined as data which has been collected by individuals or agencies for purposes other than those of the current endeavor. Common sources of secondary data include censuses, surveys, publications, public databases or registries. Primary data, by contrast, are collected by the investigator conducting the research.Secondary data analysis saves time and resources that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases that would be difficult for any individual researcher to collect on their own. In some instances, secondary data may be available which is entirely appropriate and wholly adequate to draw conclusions.Secondary data has been used by HealthEast Care System hospitals to:* define their respective service area populations;* inform them of current service area trends;* structure the more resource-intensive primary data collection plan.Wherever possible, analogous data, readily available in HealthEast Care System's varied data collection systems are presented alongside external data to bear witness to HealthEast Care System hospitals' substantial community benefit.HealthEast Care System and related organizations will continue to gather data and do research to complete the Community Health Needs Assessment as required by the Patient Protection and Affordable Act of 2010. The Community Health Needs Assessment is expected to be completed by the fiscal year ended August 31, 2013 or earlier. Part VI, Line 3: HealthEast St. John's Hospital has Financial Counselors and Social Workers available to assist patients in determining whether they qualify for help with their medical bills. Billing and Insurance Information brochures are also available to patients which explain the organization's billing and payment policies as well as contact information for discussing finanacial assistance with our Financial Counselors and Social Workers. Patients are informed about the availability of federal, state and local medical assistance programs, charity care availability as well as discounted care eligibility requirements.The patient handbook also provides information regarding collection policies and practices. Bills provided to patients include the following statement: "Financial Aid Availabie: It is important that you let us know if you will have trouble paying your bill. HealthEast may be able to help you get free or low-cost health coverage through community or government programs. Although HealthEast can assist you in this process, you must apply for these benefits if you are eligible." Part VI, Line 4: HealthEast St. John's Hospital is part of the HealthEast Care System which collectively serves a 45-zip code east metro area which constitutes approximately 85% of its annual inpatient discharges. The three hospitals included in the 45-zip code area are HealthEast St. John's Hospital in Maplewood, Minnesota, HealthEast St. Joseph's Hospital in St. Paul, Minnesota, and HealthEast Woodwinds in Woodbury, Minnesota. HeatlthEast Bethesda Hospital located in St. Paul, Minnesota, is also part of the HealthEast Care System and serves the 13 counties of the Twin Cities area.Within the zip code area or primary service area (PSA) reside 1,032,956 people within 396,426 households. Five year projections suggest a slowing overall growth of only 2.1%, although the more suburban and exurban areas of the primary service area will see more growth than the metropolitan area of St. Paul and some inner-ring suburbs. Median income in the PSA is $66,365. 7.3% of 2010 households within the PSA have less than $15,000 of income compared to 12.1% in the United States. The organizations PSA is made up of the following racial breakouts: 78.8% white, 6.4% black, 5.3% Hispanic, 6.6% Asian and 3.0% other. There are two other large acute care hospital systems in St. Paul that service this same area, as well as three to four smaller hospitals. West metro hospital systems also have a share in the HealthEast Care System PSA.Hospital Specifics:St. John's Hospital resides in the suburb of Maplewood, Minnesota. St. John's Hospital had over 14,100 admissions in the fiscal year ended August 31, 2011 and over 210,000 outpatient visits. The median income in the 15-zip code PSA of St. John's Hospital is about the same compared to the HealthEast Care System overall PSA. During the fiscal year ended August 31, 2011, St. John's Hospital received 31% of its net revenue from Medicare and 5.3% from Medicaid.St. Joseph's Hospital resides in downtown St. Paul, Minnesota. There were over 13,400 admissions in the fiscal year ended August 31, 2011 and over 118,900 outpatient visits. St. Joseph's Hospitals PSA median income is lower than HealthEast Care Systems overall median income at $53,394. The PSA consists of 22 zip codes in St. Paul city limits and inner-ring suburbs surrounding the city. During the fiscal year ended August 31, 2011, St. Joseph's Hospital received 37.3% of its net revenue from Medicare and 6.3% from Medicaid.Woodwinds Hospital resides in Woodbury, Minnesota, a recently booming suburb east of St. Paul. Woodwinds Hospital had over 7,100 admissions during the fiscal year ended August 31, 2011, and over 80,500 outpatient visits. The PSA around Woodwinds Hospital, a defined 12-zip code area, has a high median income of $73,492 and is less ethnically diverse than the other HealthEast Care System hospiatal PSAs. During the fiscal year ended August 31, 2011, Woodwinds Hospital received 25.9% of its net revenue from Medicare and 3.7% from Medicaid.Although the three HealthEast Care System acute care hospitals have their own defined PSAs, there is much overlap because of the short distance between the three hospital sites and the development of site specific centers of excellence. HeatlthEast Bethesda Hospital's primary service area includes the 13 counties of the Twin Cities Area, as their specialty services draw from a broader area. This area includes 10 counties of Minnesota that surround the urban cities of Minneapolis and St. Paul, along with three counties in western Wisconsin. Approximately 80% of Bethesda Hospital's inpatients are drawn from this area. The additional 20% come from greater Minnesota and outstate. Although some acute care hospitals offer one-specialty programs comparable to Bethesda, there is only one other Long Term Acute Care Hospital (LTACH) in the 13-county PSA. In the fiscal year ended August 31, 2011, Bethesda saw over 1,000 inpatients and experienced over Bethesda Hospital received 38.1% of its net revenue from Medicare and 13.9% from Medicaid.HealthEast Care System is fulfilling its new obligation to conduct a community health needs assessment for each of its member hospitals, as set forth in the Compilation of Patient Protection and Affordable Care Act of 2010. In 2011, HealthEast Care System completed the compilation of secondary data to aid HealthEast Care System hospitals in: a) defining their service area populations, b) informing them of current service area trends and c) structuring the more resource-intensive primary data collection plan.This data collection provided/validated information such as:* Definitions for HealthEast Care System hospital service areas or "Communities of Service."* Individuals aged 65 and older, who composed the smallest proportion of HealthEast Care System hospital service area populations (10.9%-12.7%) were consuming between 24.9% and 43.3% of the health care provided by HealthEast Care System hospitals. * Whites accounted for between 75.7% and 85.3% of HealthEast Care System hospital service areas. Among other federally recognized racial categories, individuals of Asian (4.0%-9.6%) and African American (5.2%-8.7%) descent comprised the second and third largest proportions of HealthEast hospital service areas, respectively. Hispanics/Latinos were the fourth most commonly identified group within HealthEast Care System hospital service areas (4.7%-6.0%). * Several subcultures of prominence/growth within HealthEast Care System service areas - which did not reveal themselves in the federal data - were identified.1. Within HealthEast Care System hospital service areas the Hmong population had grown between 39.0% and 45.6% over the last decade. 2. Karen refugees from Burma continued to grow in number, with 918 added in 2011. 3. Foreign-born Somalis in the Twin Cities area increased 89.9% between 2000 and 2008. * Compared to other components of HealthEast Care System hospital service areas, Ramsey County was economically behind, with substantially lower median household income, higher unemployment, higher poverty rates, and higher rates of uninsured adults than the State of Minnesota as a whole. * Minnesota's uninsured rates were lower than national figures for all available races/ ethnicities. * Generally, HealthEast Care System hospitals were observed to have room for service growth among individuals participating in state health plans (Medical Assistance, MinnesotaCare, General Assistance Medical Care) especially among eligible children. * Ramsey County contained five areas which had been identified by the federal government as medically underserved: Rice-Phalen, Thomas-Dale, Dayton's Bluff, Summit-Dale and Ramsey. * Overall, age-adjusted cancer rates for Dakota (490.8), Ramsey (471.3) and Washington (491.9) counties and the State of Minnesota (473.7) were higher than US age-adjusted-rate (466.6). * The proportion of African American visits to St. Joseph's Hospital for Heart Disease (3.3%) was considerably lower than Asians (5.7%) and Hispanics (5.6%), who were known to have lower risk nationally. * The proportions of African American visits to HealthEast Care System short-term acute hospitals for stroke was as low as or lower than for any other federally-recognized race category. Part VI, Line 6: In addition to the community benefits and activities described in other parts of this filing, HealthEast St. John's Hospital is part of the HealthEast Care System which furthers its tax-exempt charitable purpose and promotes the health of the communities it serves including, but not limited to the following: The organization's hospitals extend medical staff privileges to all qualified physicians in the community. HealthEast St. John's Hospital as part of the HealthEast Care System, a tax-exempt health care system, reinvests any excess revenues back into the core operations of the organization for which the tax-exemption was granted.The organization offers various health care classes, health screenings, support groups and other events related to the promotion of health. Some examples are in the following areas: Diabetes, Pain Care, Pregnancy, Birthing, Parenting, Heart Disease, Weight Loss, Women's Health, Vein Therapy, Chemical Dependency, Stoke, Cancer, Brain Injury, Smoking Cessation and CPR (Cardiopulmonary Resuscitation).HealthEast Care System is governed by a board of directors that are members of the community the organization serves. Part VI, Line 7: HealthEast St. John's Hosptial is part of the HealthEast Care System which is an integrated health care organization headquartered in the East Metro area of St. Paul, Minnesota. The organization, together with its subsidiaries and affiliates, provide high quality, cost effective compassioinate health care to the communities they serve. HealthEast Care System and its subsidiaries includes three acute care hospitals, one long term acute care hospital, 14 clinics, outpatient services, home care services, hospice care, pharmacies and medical transportation.See Schedule R for a list of additional related organizations and partnerships including the primary activity of affiliated organization. Reports Filed With States Part VI, Line 7 MN X 1 1 X X X X 0 1 0 0 0 0 0 1 0 Anne M Pearson MD 0 263560 0 2303 0 13175 0 37170 0 26790 0 342998 0 9156 Timothy H Hanson 0 620894 0 324039 0 160464 0 427445 0 23685 0 1556527 0 147118 Mary L Arnold 0 150635 0 11929 0 0 0 47134 0 10921 0 220619 0 0 Catherine J Barr 0 245677 0 97227 0 2543 0 83871 0 22359 0 451677 0 0 Sara Criger 0 350964 0 70053 0 1911 0 139877 0 9853 0 572658 0 0 Shirley Germann 0 149284 0 28620 0 0 0 37327 0 8607 0 223838 0 0 Robert D Gill 0 323201 0 162049 0 52858 0 144324 0 26845 0 709277 0 44945 Roger E Green 0 242476 0 57309 0 30039 0 133501 0 16253 0 479578 0 26774 Scott W Hinrichs 0 172581 0 68935 0 23544 0 79021 0 53073 0 397154 0 20377 Stephen J Kolar MD 0 333279 0 99668 0 57785 0 126333 0 35806 0 652871 0 42633 Milton P McClurkan Jr 0 246828 0 0 0 0 0 7367 0 16000 0 270195 0 0 Michael F Nass 0 187869 0 71579 0 1361 0 129044 0 25236 0 415089 0 0 Scott L North 305913 0 96452 0 40060 0 105600 0 27649 0 575674 0 37550 0 Brian Patty MD 0 282154 0 124434 0 15266 0 177514 0 48284 0 647652 0 0 John Piatkowski MD 0 223222 0 67209 0 1716 0 111713 0 20972 0 424832 0 1162 Mary F Pynn 0 227451 0 58275 0 27921 0 104188 0 21082 0 438917 0 25175 Julie A Schmidt 0 278125 0 94876 0 50067 0 124726 0 23050 0 570844 0 40295 Thomas A Schmitt 0 219558 0 78405 0 293 0 77281 0 18190 0 393727 0 0 Ann M Schrader 0 446741 0 181547 0 78739 0 138927 0 37171 0 883125 0 61885 Mindy A Smith 271286 0 69428 0 107344 0 111510 0 21802 0 581370 0 105944 0 Leslie R Stern 0 187133 0 25008 0 162 0 26585 0 17362 0 256250 0 0 Virginia Sullivan 0 206815 0 74285 0 23339 0 42258 0 24364 0 371061 0 21768 Craig A Svendson MD 0 276746 0 94959 0 3011 0 134435 0 23147 0 532298 0 0 John Kvasnicka MD 336314 0 38163 0 1430 0 53623 0 17768 0 447298 0 1430 0 Paul J Sovell MD 330141 0 9000 0 8665 0 59375 0 17337 0 424518 0 14510 0 John T Filipovich MD 316899 0 14000 0 16729 0 45221 0 34281 0 427130 0 0 0 Peter J Tanghe MD 314100 0 12250 0 548 0 65907 0 14321 0 407126 0 0 0 Paul M McCormick MD 290917 0 7000 0 19698 0 45043 0 29892 0 392550 0 13846 0 June A Kim MD 0 776233 0 0 0 8631 0 57333 0 18772 0 860969 0 0 Puneet S Cheema MD 0 1235841 0 0 0 5202 0 82929 0 22241 0 1346213 0 0 Kevin P Mulvey MD 0 711518 0 0 0 9343 0 57966 0 30787 0 809614 0 0 Jonathan C Grimes MD 0 291888 0 13120 0 16795 0 47865 0 25722 0 395390 0 10968 Part I, Line 1a Rev. Scott Hinrichs, Vice President of Spiritual Care & Mission for HealthEast Care System was paid $38,400 for housing allowance. This was treated as nontaxable compensation to Rev. Scott Hinrichs. Housing allowances are nontaxable compensation to ordained members of the clergy. Part I, Line 4b The following individuals participated in or received payment from a supplemental nonqualified retirement plan. The amount listed is the amount paid to the individual and reported accordingly on their 2010 W-2 Form. The terms and conditions of this supplemental nonqualified retirement plan is a five year cliff vesting arrangement: Anne M. Pearson M.D. $9,156; Timothy H. Hanson $147,118; Robert D. Gill $44,945; Roger E. Green $26,774; Rev. Scott Hinrichs $20,377; Stephen J. Kolar, M.D. $42,633; Scott North $37,550; John Piatkowski, M.D. $1,162; Mary F. Pynn $25,175; Julie A. Schmidt $40,295; Ann M. Schrader $61,885; Mindy A. Smith $105,944; Virginia Sullivan $21,768; John Kvasnicka, M.D. $1,430; John T. Filipovich, M.D. $14,510; Paul M. McCormick, M.D. $13,846; Jonathan C. Grimes, M.D. $10,968 The following individuals were participants in the supplemental nonqualified retirement plan but did not receive any payment as they are not yet vested in the plan: Mary Arnold, Catherine J. Barr, Sara Criger, Michael F. Nass, Brian Patty, M.D., Thomas A. Schmitt, Leslie R. Stern, Craig A. Svendson, M.D., Paul J. Sovell, M.D., Peter J. Tanghe, M.D., June A. Kim, M.D., Puneet S. Cheema, M.D., Kevin P. Mulvey, M.D. Part I, Line 7 HEALTHEAST MANAGEMENT INCENTIVE PROGRAM DESCRIPTION: For Patient Care Executives, Operation Executives and Senior Directors For Clinic Managers, Directors and System/Group Directors Summary Description and Goals: The Management Incentive Program provides lump sum financial awards based on system-wide, business unit and/or department financial and quality measures. The primary goal of the Program is to focus the manager on meeting key objectives related to the business while managing their operation(s) or function(s) effectively and efficiently to improve overall financial performance for the HealthEast organization. Annual goals, specifically tied to productivity and quality indicators, will be set for the fiscal year and an incentive paid out annually if key goals and measures are achieved. Goals are weighted based on strategic importance. Specific objectives of the Program are as follows: * Strengthen performance of HealthEast * Align goals of management with HealthEast's mission, values and strategic direction * Achieve "line of sight" by combining system-wide, business unit and/or department financial and quality performance objectives * Provide competitive levels of incentive opportunity to help attract and retain the best talent * Promote objectivity and fairness through rigorous goal setting and performance measurement * Provide feedback on performance relative to goals throughout the plan year to strengthen the link between individual performance and HealthEast's system-wide results Qualifications for Funding and Paying Awards: Before HealthEast can authorize payment of any awards, it must meet the following qualifications: * Financial - HealthEast must have sufficient net income for the fiscal year to cover the cost of any awards. * Accreditation - All HealthEast business units must maintain a level of quality and performance that results in, and maintains, accreditation by Joint Commission (JCAHO) and equivalent licensing boards * Approval -The HealthEast Board of Directors has final approval of all incentive program payouts. In addition, each participant must meet the following individual qualifications to be eligible to receive an award: * Performance - Participant must be performing at an acceptable level in order to be eligible for a payout. * Performance Management - Each participant must have completed performance appraisals for all direct reports with review dates on, or before, August 31 of the fiscal year for which the Program is in effect. * Mandatory Education - Each participant must have completed his/her annual calendar year Mandatory Education training. Award Determination Procedures: The awards are based on a percentage of the participant's salary. The Annual awards range from 0% to 24% of the participant's salary for Patient Care Executives, Operation Executives and Senior Directors. The Annual awards range from 0% to 12% of the participant's salary for Clinic Managers, Directors and System/Group Directors. The award is calculated according to the incentive opportunity assigned to each position, the level of performance achieved on each goal and the weight assigned to each goal. Supplemental Information Part III Form 990, Part VII, Section A, Line 5: Milton P. McClurkan, Jr. received compensation for the professional services rendered to this organization from Innovative Consulting Group, an unrelated organization. Roger Green Spouse employed by HealthEast St. John's Hospital 26397 Employment transaction. Roger Greens' spouse is employed at HealthEast St. John's Hospital. 0 Explanation for number reported in Box 3 of Form 1096: Form 990, Part V, Line 1a Cash disbursements are centralized through the parent organization. Therefore the parent organization, HealthEast Care System, makes the payment and files the related Form 1099's and Form 1096 instead of HealthEast St. John's Hospital. Form 990, Part VI, Section A, line 6 The sole member of HealthEast St. John's Hospital is HealthEast Care System, a 501(c)(3) tax-exempt, non-profit organization. The member organization does not elect the members of the Board of Directors because it is a self-electing board. The member organization does not approve any decisions of the board. The member of the organization receives the organziations net assets upon dissolution. Form 990, Part VI, Section B, line 11 The Form 990 is sent electronically to all members of the Board of Directors prior to the filing of the Form 990 and prior to the board meeting in which it will be reviewed. The Director of Tax attends the board meeting to discuss the Form 990 with the members of the Board and answer any questions from the Board. Form 990, Part VI, Section B, line 12c HealthEast Care System monitors proposed or ongoing transactions for conflicts of interest through the procedures set forth in its Conflicts of Interest Policy (the Policy). The Policy covers HealthEast Care System's Directors, Officers and members of a Committee with Board-delegated powers. A Director, Officer or members of a Committee with Board-delegated powers who has a direct or indirect financial interest, is an interested person under the terms of the Policy. If a person is an interested person with respect to any entity in the HealthEast Care System he or she is an interested person with respect to all entities in the HealthEast Care System. Pursuant to the terms of the Policy, 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 relating to his or her financial interest to the Directors or members of Committees with Board-delegated powers considering the proposed transaction or arrangement. After disclosure of the financial interest and all material facts, and after any discussion with the interested person, the interested person must leave the Board (or Committee) meeting while the financial interest is discussed and voted upon. The remaining Board (or Committee) members shall decide if a conflict of interest exists. An interested person may make a presentation at the Board or Committee meeting regarding the proposed transaction or arrangement, but after such presentation, the interested person shall leave the meeting during the discussion of, and the vote on, the proposed transaction or arrangement that results in the conflict of interest. Form 990, Part VI, Section B, line 15 The Chair of the Board of Directors engages an external consulting firm to review the compensation of the organization's CEO, Senior Vice Presidents and Vice Presidents annually and was last completed in November 2010. The process includes the external consulting firm evaluating current base salaries and total cash and benefits compared to comparable positions within the comparator group. The external firm presents its findings to the Executive Committee of the Board and indicates any recommendations for change. The Executive Committee of the Board approves the salaries. The consulting firm issues a reasonable compensation letter to the Board of Directors. Form 990, Part VI, Section C, line 19 The Articles of Incorporation for this organization are made available to the public through the Secretary of State Office. The organizations conflict of interest policy and other governing documents are not made available to the public. The financial statements for this organization are made available to the public through the Attorney General's Office. Average hours worked per week devoted to related organizations: Form 990, Part VII, Section A, Column B Individuals listed on Form 990, Part VII, Section A, Column A worked the following average hours per week for a related organization: Larry Ainsworth 2 hours, Dianne Arnold 2 hours, Diane Berthel 2 hours, Patrick Donovan 2 hours, Albert Eggert 2 hours, John Finnegan, Jr. M.D. 2 hours, Joan Grzywinski 2 hours, Fred Harris Jr. 4 hours, Roland Hayes 4 hours, Anne M. Pearson M.D. 40 hours, Leonard Randolph 2 hours, Sister Marie Seiter 2 hours, David Taylor 2 hours, Jone Tiffany 2 hours, Laure Waschbusch M.D. 2 hours, James Wiltz 2 hours, Timothy Hanson 40 hours, Mary Arnold 40 hours, Catherine Barr 40 hours, Sara Criger 40 hours, Brandon Cullinan, M.D. 40 hours, Shirley Germann 40 hours, Robert Gill 40 hours, Roger Green 40 hours, Scott Hinrichs 40 hours, Stephen Kolar 40 hours, Milton McClurkan Jr. 40 hours, Michael Nass 40 hours, Scott North 0 hours, Brian Patty M.D. 40 hours, John Piatkowski M.D. 40 hours, Mary Pynn 40 hours, Julie Schmidt 40 hours, Thomas Schmitt 40 hours, Ann Schrader 40 hours, Mindy Smith 0 hours, Leslie Stern 40 hours, Virginia Sullivan 40 hours, Craig Svendson M.D. 40 hours, John Kvasnicka M.D. 0 hours, John T. Filipovich M.D. 0 hours, Paul J. Sovell M.D. 0 hours, Peter Tanghe M.D. 0 hours, Paul McCormick M.D. 0 hours, Puneet S. Cheema M.D. 40 hours, June A. Kim M.D. 40 hours, Kevin P. Mulvey M.D. 40 hours, Jonathan Grimes M.D. 40 hours Average hours worked per week: Form 990, Part VII, Section A, Column B This organization is a subsidiary of HealthEast Care System, a 501(c)(3), tax-exempt, non-profit organization. The Board of Directors for this organization is the same as the Board of Directors for HealthEast Care System. All hours worked as a member of the Board of Directors are reported on the Form 990 for the parent organization, HealthEast Care System. Therefore, we have reported 0.00 hours worked by each member of the Board of Directors on this organization's return. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Donated Assets 1,120,688. Interest Income reported on tax return, not books -65. Partnership Income reported on tax return, not books -87,987. Partnership Income reported on books, not tax return 78,359. Contribution to Parent Company -20,780,588. Surgery Center Income reported on books, not on tax return 2,814,804. Security Revenue reported on books, not on tax return 5,520. Partnership Distribution reported on books, not tax return -112,500. Surgery Center Income reported on tax return, not books -1,938,002. Rounding 1. Total to Form 990, Part XI, Line 5: -18,899,770. Were financial statements audited by independent accountant: Form 990, Part XII, Line 2 HealthEast St. John's Hospital is part of HealthEast Care System and its various subsidiaries. Therefore, this organization's financial statements were only audited on a consolidated basis by an independent auditor as oppossed to separate audits. HealthEast Medical Imaging LLC 3640 Talmage Circle Vadnais Heights MN 55110 200509546 Diagnostic Imaging Services MN 1998062 213908 N/A D & T Facility Management Company PO Box 64624 St Paul MN 55164 411928275 Diagnostic Medical Services MN 501(c)(3) 11a HealthEast Woodwinds Hospital 0 HealthEast Medical Research Institute PO Box 64624 St Paul MN 55164 411765832 Medical Research MN 501(c)(3) 4 HealthEast Care System 0 HealthEast Professional Services PO Box 64624 St Paul MN 55164 261226617 Physician services provided to related tax-exempt hospitals. MN 501(c)(3) 9 HealthEast Care System 0 HealthEast St Joseph's Hospital PO Box 64624 St Paul MN 55164 410693880 Hospital MN 501(c)(3) 3 HealthEast Care System 0 HealthEast Woodwinds Hospital PO Box 64624 St Paul MN 55164 411592761 Hospital MN 501(c)(3) 3 HealthEast Care System 0 HealthEast Care System PO Box 64624 St Paul MN 55164 363517697 Hospital MN 501(c)(3) 3 N/A 0 Maplewood Professional Building Limited Partnership 1655 Beam Avenue Maplewood MN 55109 411431847 Rental Real Estate MN HealthEast St John's Hospital Related 88052 370882 0 1 0.12600 HealthEast Surgery Center-Maplewood LLC 1655 Beam Avenue Maplewood MN 55109 203349887 Outpatient Surgery Center MN HealthEast St John's Hospital Related 2857921 2210986 0 0 0.74500 East Metro Insurance LTD 62 Forum Lane 3rd Floor Camana Ba Grand Cayman CJ KY1-1203 980417513 Captive Insurance Organization CJ N/A C HealthEast Diversified Services Inc PO Box 64624 St Paul MN 55164 411388583 Reference Lab, Retail Pharmacies, Rental Real Estate MN N/A C 1 1 0 1 0 0 0 0 1 1 1 1 0 1 1 1 0 1 HealthEast Maplewood Surgery Center-Maplewood LLC R 2715525 Cost Maplewood Professional Building Limited Partnership A 16726 Fair Market Value Maplewood Professional Building Limited Partnership J 266734 Fair Market Value