2011-05-05T17:09:33-05:00 2010-06-30 KPMG LLP 55 SECOND STREET SUITE 1400 SAN FRANCISCO CA 94105 990 2009-07-01 951802779 Bakersfield Memorial Hospital BAKE 6613271792 PO Box 1888 Bakersfield CA 933011888 Jon Van Boening 2011-05-04 4159635100 2009 2016-02-24 21:20:13Z Jon Van Boening 420 34th Street Bakersfield CA 93301 283943165 false X WWW.CHWHEALTH.COM X 1951 CA TO PROVIDE MEDICAL AND HEALTHCARE SERVICES TO THE COMMUNITY. 12 8 1668 17 2323158 -451841 3047283 1025853 248651879 261609627 1647035 2326484 1850581 1842322 255196778 266804286 86742 160996 0 0 127364665 137203445 0 0 248047 101025124 112619705 228476531 249984146 26720247 16820140 312328165 325887074 127115283 123865147 185212882 202021927 BAKERSFIELD MEMORIAL HOSPITAL IS DEDICATED TO DELIVERING HEALTH SERVICES THAT ARE COMPASSIONATE, HIGH-QUALITY AND AFFORDABLE. WE PROMOTE HEALTHY LIFESTYLES AS AN INTEGRAL PART OF THE COMMUNITY WE SERVE, WITH A SPECIAL CONCERN FOR THE UNDERSERVED. false false 182138501 160996 211663064 BAKERSFIELD MEMORIAL HOSPITAL'S MISSION IS TO CONTRIBUTE TO THE HEALTH OF THE COMMUNITY THROUGH THE PROVISION OF QUALITY SERVICES DELIVERED IN A COMPASSIONATE AND COST EFFECTIVE MANNER. THE HOSPITAL HAS 430 BEDS AND SERVICED PATIENTS AS FOLLOWS: OUTPATIENT VISITS OF 116,381; EMERGENCY VISITS OF 59,071; INPATIENT AND OUTPATIENT OPERATING ROOM CASES OF 8,430; AND INPATIENT AND OUTPATIENT CARDIAC PROCEDURES OF 6,394. BMH HAS A 24-HOUR EMERGENCY ROOM AND PROVIDES SERVICES TO BENEFICIARIES OF THE MEDICARE PROGRAM AS WELL AS A WIDE RANGE OF COMMERCIALLY INSURED. BMH ALSO PROVIDES SERVICES TO INDIVIDUALS WITHOUT THE ABILITY TO PAY - SERVICES FOR WHICH BMH RECEIVES NO REIMBURSEMENT FROM ANY OUTSIDE SOURCE. INPATIENT SERVICES: ACUTE MEDICAL/SURGICAL CARE/PSYCHIATRIC, SKILL NURSING; CANCER CENTER; CARDIOVASCULAR SURGERY; CARDIAC CATHETERIZATION LAB; EMERGENCY/QUICK CARE; INTENSIVE CARE; PHARMACY; SURGERY; SPEECH PATHOLOGY; SOCIAL SERVICES; RESPIRATORY CARE; PHYSICAL THERAPY; TRANSITIONAL CARE UNIT AND WOMEN AND INFANT CARE UNIT. OUTPATIENT SERVICES: AMBULATORY TREATMENT CENTER; CARDIAC REHABILITATION; CARDIOPULMONARY; DIAGNOSTIC IMAGING; LABORATORY; OUTPATIENT SURGERY CENTER; REHABILITATION SERVICES; AND WELLNESS/OCCUPATIONAL MEDICINE. SUPPORT SERVICES: CHAPLAINCY PROGRAM; EDUCATIONAL SERVICES; HEALTH SCIENCES LIBRARY; AS WELL AS SUPPORT, TIME AND MONEY TO ORGANIZATIONS AND INDIVIDUALS THROUGHOUT THE COMMUNITY. 23036943 0 26185353 CARDIOLOGY SERVICE LINE 20174049 0 21558850 ORTHOPEDICS SERVICE LINE 225349493 true true false true false false false false true true false true false false false false false false false false true true false true true true false false false false false false true false true false false false false false true true false false true 206 0 true 1668 true true true false false false false false false false false 12 8 false false false false true true true true true false false false true true true true true false false true true CA X JOHN HOLBERT CONTROLLER 6613274647 420 34TH STREET BAKERSFIELD CA 93301 Stephen T Clifford 8.0 X 0 0 0 Dr John R Findley 8.0 X 0 0 0 D Bradley Hannink 8.0 X 0 0 0 Dr Susan P Helper 8.0 X 0 0 0 Russell Judd 8.0 X 0 586776 65218 Dr Javier Miro 8.0 X 0 0 0 Dr Madan Mukhopadhyay 8.0 X 0 0 0 Sandra Serrano 8.0 X 0 0 0 Robert Noriega 8.0 X X 0 0 0 Edward H Shuler 8.0 X X 0 0 0 Thomas W Smith 8.0 X X 0 0 0 Jon Van Boening 40.0 X X 0 572558 71973 Jesica Hanson 40.0 X 204514 0 27087 Terri Church 40.0 X 207863 0 19435 Sheri Comaianni 40.0 X 195513 0 16328 Dr Robert Marshall 40.0 X 280870 0 27317 Bruce Peters 40.0 X 262722 0 37011 Dr Rodney Mark Root 40.0 X 0 0 0 Whabong Anderson 40.0 X 264470 0 22264 Editha Lolin 40.0 X 249211 0 25564 David J Lozano 40.0 X 196710 0 28415 Karen J Simpson 40.0 X 201190 0 16036 Gena L Cook 40.0 X 180561 0 28714 Jim Eppink X 141041 0 7087 2384665 1159334 392449 224 true true false TRAVEL NURSE SOLUTIONS LLC 3500 BLUE LAKE DR SUITE 290 BIRMINGHAM AL 35243 Medical Services 774154 CROSS COUNTRY TRAVCORPS LA LOCKBOX FILE 50941 LOS ANGELES CA 900740941 Traveling Nurse Serv 743873 HARRISON MARKETING ADVERTISING 5001 CALIFORNIA AVE STE 209 BAKERSFIELD CA 93309 Advertising 559378 MICHAEL K BROWN LANDSCAPE INC 3541 ALKEN ST BAKERSFIELD CA 93308 Landscaping 438649 AUREUS NURSING LLC PO BOX 3037 OMAHA NE 681030037 Traveling Nurse Serv 425535 36 747589 278264 1025853 PATIENT REV/CHARITY CARE 900099 177440445 177440445 MEDICARE/MEDICAID PAYMENTS 900099 81547021 81547021 KERN HOME HEALTH RESOURCES 621610 390891 390891 LABORATORY 621500 2202360 2202360 MEDICAL OFFICE BUILDING RENTS 621110 21909 21909 7001 7001 261609627 1659615 1659615 0 0 2250 2250 2250 2250 17449798 355950 16776929 361950 672869 -6000 666869 666869 0 0 0 CAFETERIA REVENUE 900099 816277 816277 GIFT SHOP 900099 490001 490001 MANAGEMENT SERVICES (JV) 541610 52500 52500 481294 68298 412996 1840072 266804286 259407267 2323158 4048008 160996 160996 0 0 0 1601699 1517367 81922 2410 27000 27000 107814428 103165368 4487825 161235 6095452 5164979 914318 16155 14828351 12595839 2224379 8133 6836515 5786525 1025477 24513 0 392343 392343 93761 93761 0 0 102395 102395 22080565 16522372 5548072 10121 1102423 1102423 7627902 6837418 771826 18658 7797107 5847830 1949277 0 3635147 3051284 583763 100 135386 50665 84417 304 0 282457 84737 197720 5927105 5927105 0 9104038 7727758 1376280 750594 630527 115551 4516 BAD DEBT EXPENSE 8997958 8997958 LICENSES & TAXES 267499 160003 107336 160 DUES & SUBSCRIPTIONS 368947 100748 266457 1742 MEDICAL SUPPLIES 40021885 40021885 RECRUITING 1044901 1044901 2887292 971129 1916163 249984146 225349493 24386606 248047 2550 3000 103319146 116813654 39205064 32461624 3143328 2274861 3494394 3821291 3912246 1408690 278759494 153880107 130562948 124879387 18837182 21269797 4677910 5095995 4548921 17840775 624476 18000 312328165 325887074 17199761 21284035 299585 0 35000000 35000000 0 0 74615937 67581112 127115283 123865147 X 181002723 198754952 4140159 3196975 70000 70000 185212882 202021927 312328165 325887074 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false true 17974 false false false 17974 false PART II-B, LINE 1F Lobbying expenditures paid by the Parent organization for annual membership dues where expenses are allocated to the hospital: American Hospital Association $1,300 Catholic Health Association $1,931 Hospital Association of So. Cal $14,743 ========== TOTAL $17,974 70000 70000 1.00000 false true true 4943176 4943176 179069945 81793315 97276630 88523380 69795820 18727560 6222993 2290972 3932021 124879387 INTEREST IN BAK MEM HOSP FDN 3266975 F INVSTMENT IN HLTH RELATED ORGS 14573800 F 17840775 0 DUE TO RELATED PARTIES 63886630 OTHER NON-CURRENT LIABILITIES 97101 PENSION PAYABLE 3572381 DEFERRED COMPENSATION 25000 67581112 FORM 990, PART X, LINE 25 The consolidated audited financial statements did not include a FIN 48 footnote disclosure as the liability was determined not material for reporting purposes. Sch D, PART V, LINE 4 Bakersfield Memorial Foundation, a related organization, holds a permanent endowment fund. The earnings on this endowment is used to fund nursing scholarships granted by the Foundation each year. true true X true X true X 500. true true false true true 5648 4832765 934500 3898265 0.01620 43229 62038421 50585842 11452579 0.04750 48877 66871186 51520342 15350844 0.06370 27961 831253 60560 770693 0.00320 38684 910041 0 910041 0.00380 23044 546892 36961 509931 0.00210 89689 2288186 97521 2190665 0.00910 138566 69159372 51617863 17541509 0.07280 2385 76420 0 76420 0.00030 4963 41552 0 41552 0.00020 7348 117972 0 117972 0.00050 true 1888508 0 56072020 60218036 -4146016 X true true MILLENNIUM SURGERY AMBULATORY SURGERY CENTER 0.60000 0.00000 0.40000 Bakersfield Memorial Hospital

420 34th St Bakersfield CA 93301

X X X Not applicable. Bakersfield Memorial Hospital (BMH) uses Federal Poverty Guidelines (FPG) to determine eligibility. The organization prepares a separate community benefit report. For purposes of calculating the amounts provided in the table, BMH uses a cost accounting system that combines relative value units (RVU) and cost to charge ratios (CCR) to allocate costs to the patient level. The cost accounting system algorithm allocates total operating expenses to the procedure charge code level based upon an RVU for procedures that have been studied and assigned an RVU, or based upon a CCR for unstudied procedures that do not have an RVU assigned. When a CCR is used, the system calculates that CCR on a departmental specific basis at the hospital where the services were provided. The calculation is similar to the Worksheet 2 of Schedule H, Ratio of Patient Care Cost to Charges, except it is calculated on a departmental specific basis, not in the aggregate. The allocated procedure charge code level costs are then rolled up to the patient level based upon the billed procedure charge codes associated with those services provided to each specific patient. This is done for all patient segments including inpatient, outpatient, emergency department, private insurance, Medicaid, Medicare, uninsured and self pay. The cost accounting system is utilized to determine the unreimbursed cost of Medicaid and other means-tested government programs. The cost of charity care is calculated by applying the CCR derived from the cost accounting system on a per facility basis, to the charges incurred on patients that qualify for charity care at the respective facility. The actual cost is reported for other community benefit activities such as community health improvement services, community benefit operations, health professions education, subsidized health services, research and cash and in-kind donations. There were no costs attributable to a physician clinic included in subsidized health services in Part I table. The amount of bad debt expense included on Form 990, Part IX, line 25, column (A) is $8,997,958 and has been subtracted for purposes of calculating the percentages in column (f). The amount of the organization's bad debt at cost is determined by applying the CCR (see above) to patient charges that are deemed to be uncollectible. This amount represents the cost of services provided to patients who are unable or refuse to pay their bills and do not qualify for free or discounted care, government sponsored programs or other financial assistance, and are otherwise uninsured. Any portion of a patient bill remaining after applying financial, uninsured or other discounts or payments received on the account that are ultimately determined to be uncollectible are written off to bad debt. As noted in Part I, Line 3, BMH provides free or discounted care to uninsured or under-insured individuals at or below 500% of the Federal Poverty Level. BMH also provides patients options for prompt pay discounts, discounts for the medically indigent, and interest-free extended payment plans for patients who have demonstrated good faith and are cooperating in resolving their hospital bills. All accounts for eligible uninsured patients receive an automatic uninsured discount of 25% for patients seen at California facilities. The expected patient payment amount on the patient's bill reflects this discount. BMH makes every effort in determining if a patient qualifies for charity care upon admission. BMH follows CHW's financial assistance policy. CHW's financial assistance policy is communicated to patients upon admission and is available in the languages primarily spoken in the community. It is also posted in various common areas of the hospital and is provided upon billing if eligibility is not previously determined. Eligibility is reevaluated as needed and amounts are classified as charity as soon as eligibility is known. CHW also utilizes a Payment Assistance Rank Ordering (PARO) scoring system to assist in determining if a patient may qualify for charity care even though they have not applied for it. PARO is a methodology that applies consistent screening and application standards to all patients utilizing historical data to develop a predictive model for healthcare financial assistance. In its development, special attention was paid to those socio-economic factors that might adversely affect those patients deserving the most attention. Other criteria are also utilized to ensure that no services that have qualified as charity are reported as bad debt. As such, BMH does not believe that any amounts included in Part III, Line 2, are attributable to patients eligible under the organization's charity care policy. The following is an excerpt from CHW and its subordinate corporations' consolidated annual audited financial statements for the year ended June 30, 2010, related to accounts receivable and allowances for charity and doubtful accounts: Patient accounts receivable and net patient service revenue are reported at the net realizable amount from patients, third-party payors, and others for services rendered. BMH manages its collection risk by regularly reviewing its accounts and contracts and by providing appropriate allowances. Reserves for charity and uncollectible amounts have been established and are netted against patient accounts receivable in the consolidated balance sheet. BMH prepares Medicare cost reports in a manner that comports with Provider Reimbursement Manual (PRM) 15-1, 2150ff and PRM 15-2, 1000ff. As such, the following language per the PRM 15-1 describes the computation of costs per the Medicare Cost Report: Total allowable costs of a provider are apportioned between program beneficiaries and other patients so that the share borne by the program is based upon actual services received by program beneficiaries. The ratio of covered beneficiary charges to total patient charges for the services of each ancillary department is applied to the cost of the department. Added to this amount is the cost of routine services for program beneficiaries, determined on the basis of a separate average cost per diem for all patients for general routine patient care areas. Another factor to be considered is a separate average cost per diem for intensive care unit, coronary care unit, and other special care inpatient hospital units. CHW believes that the entire Medicare shortfall of $345.6 million, as reported below in Part VI, Line 7, constitutes community benefit. The IRS Community Benefit Standard includes the provision of care to the elderly and Medicare patients. Medicare shortfalls must be absorbed by CHW hospitals in order to continue treating the elderly in our communities. The hospitals provide care regardless of this shortfall and thereby relieve the federal government of the burden of paying the full cost for Medicare beneficiaries. This shortfall includes $4.1 million reported on Part III, Section B, Line 8, primarily for fee for service Medicare patients, as well as the unreimbursed portion of Medicare Managed Care and Medicare Capitated programs for BMH. BMH ensures that patient accounts are processed fairly and consistently. BMH follows CHW's Patient Payment Assistance Policy. CHW's collection policy contains provisions that prohibit the collection of amounts due from patients who the organization knows qualify for charity care. Accounts with incorrect or incomplete demographic information are assigned to a collection agency if BMH or the billing company retained by CHW is unable to obtain an updated address through skip tracing or other means. For patients who have an application pending for either government-sponsored financial assistance or for assistance under CHW's Patient Payment Assistance Policy, or where the patient is attempting in good faith to settle an outstanding bill with the facility via payment plans, BMH will not knowingly send that patient's bill to an outside collection agency. Legal action will not be pursued to collect debts from patients who have qualified for charity or are cooperating in good faith to resolve their debt. BMH does not impose wage garnishments or liens on primary residences. On self-pay accounts that do not meet the criteria noted above, the initial determination of assignment to a collection agency will vary depending on the nature of the account with the final decision being at the discretion of each hospital patient financial assistance department. Upon assignment of such a patient account to a collection agency, CHW requires the agency to comply with the Fair Debt Collection Practices Act. NONE Bakersfield Memorial Hospital utilizes the following methods to assess community needs and the effectiveness of our response to these challenges. Employees of the Department of Special Needs & Community Outreach serve on 11 different boards or committees that respond to a wide variety of community concerns. Each quarter all hospital exempt employees report the names of the community organizations, neighborhood groups, and related community health activities in which they participate. Our participation as a collaborative partner provides an opportunity to share information, resources and ideas, solve problems, identify options, and evaluate the success of our efforts. The Community Benefit Committee helps ensure that our outreach services address identified community needs and is effectively working to improve the overall health status of the community and quality of life for its residents. The community wide assessment conducted in 2003 by DNA and Company, Inc. provided us with a baseline of demographic, health, and social indicators for Kern County. In 2006, United Way of Kern County, in collaboration with Bakersfield Memorial Hospital, Community Action Partnership of Kern, Delano Regional Medical Center, Kaiser Permanente, Mercy Hospitals of Bakersfield, and San Joaquin Community Hospital, sponsored the most recent Kern County Community Assessment. This report updated countywide statistics and helped to validate the community issues targeted for improvement that resulted from the 2003 Kern County Community Assessment. The Kern County Network for Children Report Card 2008 is also used to corroborate the focus of our services. The CHW Reporting Sheet for Community Needs Index (CNI) for Kern County prepared by Thomson/CHW is used to further validate the identification of communities (based on ZIP codes) that are the most socio economically disadvantaged and thus most in need. Residents of these communities tend to have Disproportionate Unmet Health Related Needs (DUHN); i.e., lack of education, lack of health care insurance, homelessness or transient lifestyles, no or limited access to quality health care, high prevalence of conditions such as diabetes, heart disease, obesity, and substance abuse. During 2010, Bakersfield Memorial Hospital, with other community partners, launched www.HealthyKern.org. This new website can be utilized as a single Internet source dedicated to hosting current Kern County health information. Local health data will be more readily available. These same community partners in collaboration with Healthy Communities Institute (Berkeley) began the process for our community needs assessment. The process includes key informant interviews, committee planning meetings, priority areas of concern, and implementation strategies. The Kern County needs assessment will be completed by December 30, 2010. Communication of the Financial Assistance Program to Patients and the Public: Information about patient financial assistance available from CHW, including a contact number, was disseminated by the CHW facility by various means, including the publication of notices in patient bills and by posting notices in the Emergency and Admitting Departments, and at other public places as the CHW facility may elect. Such information was provided in the primary languages spoken by the populations served by the CHW facility. THE Information was posted in the Patient Access (Admitting) departments in the hospital as well as in the Patient Business Office. If the opportunity was not available for patient access to discuss the policy with the patient, a Comspec representative (a contractor for the business office), discussed the various options during the patient's hospital stay. The information regarding payment assistance and the availability of government aid WAS also given in a brochure to each patient during the registration process. Any member of the CHW facility staff or medical staff may make referral of patients for financial assistance. The patient or a family member, a close friend or associate of the patient may also make a request for financial assistance. Bakersfield Memorial Hospital serves all of Kern County, including Bakersfield (the county seat) and outlying rural communities such as Taft, Arvin and Lake Isabella. The county stretches more than 8,100 square miles, geographically making it the third largest county in the state. Other nine Hospitals serving the community are as follows: Bakersfield Heart, Bakersfield Memorial, Good Samaritan, Kern Medical Center, Mercy, Mercy Southwest, Ridgecrest Regional, San Joaquin Community, and Tehachapi. There are also eight Federally-designated medically underserved areas or populations, which are the McFarland-Delano Service Area, Bakersfield East/Lakeview/La Loma Service Area, Ridgecrest Service Are, and Other Kern service Areas (5). According to the California Department of Finance, Kern County's estimated population for 2010 is 871,728, and it is the 13th largest county based on population and the 7th fastest growing within the state's 58 counties. By the year 2020, Kern County is projected to reach 1.1 million in population (California Department of Finance). Bakersfield's population of 333,719 (2010 estimate from the California Department of Finance) makes it the 11th largest city in California and places it among the top 100 largest metropolitan areas in the nation. The median income for households in Kern County is $35,446. Approximately 41% of Kern County's population resides in rental occupied housing units and 16% of Kern County residents are unemployed (U.S. Census Bureau, American Fact Finder, CA EDD, Kern County, California) Based on 2010 population estimates (California Department of Finance), Kern County's population is ethnically and culturally diverse with 43.2 percent white (non Hispanic/Latino), 45.1 percent Hispanic/Latino, 5.5 percent African American, 3.8 percent Asian/Pacific Islander, 0.8 percent American Indian/Alaskan, and 1.3 percent multi-race. The demographics are dramatically shifting in Kern County as seen in the population of children of the county with nearly sixty percent of the 0 to 5 year old population now being Hispanic. One in five Kern County residents and 16.8 percent of families live in poverty. According to the 2007 California Health Interview Survey, 8.6 percent of Kern County children did not have health insurance coverage for all or part of the previous year compared to 10.2 percent statewide. During the 2006 07 school year, 35.6 percent of Kern County students tested had unhealthy body composition (obesity) based on individual Body Mass Index (BMI) scores. Many of Bakersfield's poorest residents are concentrated in the city's southeast quadrant, the site of our two community outreach centers. The population is largely African American and Hispanic/Latino, with a high concentration of limited English speaking individuals (many undocumented), elevated youth gang activity, and a high unemployment rate. For many low income individuals and families living in the outlying rural communities of Kern County, geographic isolation heightens barriers to healthcare and other social services. Our initiatives focus on providing preventive healthcare and related beneficial services free of cost (or minimal charge) to families/individuals facing the most severe economic and social challenges. We offer compassionate and valuable services to vulnerable children, frail elderly, limited English speaking, low income families, and immigrants. The mission of Bakersfield Memorial Hospital and our status as the largest health care provider in Kern County dictate that we occupy a leadership role in building a healthier community. It is a responsibility that we eagerly embrace as a defining characteristic of our organization. The Community Benefit Report and Plan contains examples of the programs and initiatives we have undertaken that make a positive, measurable impact on the community we serve (i.e., dollars spent on indigent medical care, children fed and clothed, victims served, and families taught to manage chronic disease). In fiscal year 2010 CHSB provided support to the following: Program: Committee That Responds to Community Need Description: CHW Kern Service Area employees donating their time and expertise to boards and committees that serve the community. Program: Homemaker Care Program - Training Description: The Homemaker Care Program provides a two-week comprehensive employment readiness skills training focusing in individuals transitioning from unemployment into the workforce. In collaboration with over 20 community agencies, the Homemaker Care Program will offer skills training in the field of In-Home Supportive Services. Program: Support a Community Endeavor Description: CHW Kern Service Area employees volunteering their time to support community endeavors that promote health and well-being. Program: Boy Scouts Description: The Boy Scout pack at the CHW Learning Center is part of the "Scout Reach" program which strives to bring the Boy Scout message to underserved boys who otherwise would not be able to participate in a scouting program. Program: Employment Counseling Description: Designed to enhance the skills of residents in Southeast Bakersfield who are entering the job market by providing resume preparation, interview techniques, assistance with application preparation and additional support with job search services. Program: Girl Scouts Description: The Girl Scout troop at the CHW Learning Center is part of the scouting outreach to underserved girls in the community. The program strives to bring the Girl Scout message to girls who would otherwise not be able to participate in a scouting program. Program: Holiday Baskets Description: Holiday baskets are provided by St. Philips Parish to provide food to families in need during the holiday season. The CHW Learning and Outreach Centers submit eligible families to the church contact and distribute the baskets to eligible families. Program: Homework Club Description: The Homework Club provides an academically structured after school program for underserved students attending first through seventh grades. The Program focuses on providing a safe environment for pre-teens to work on homework and other academic skills. Program: Pack-A-Sack Lunch Program Description: The Pack-a-Sack Program is a community-supported effort that provides a nutritious snack to after-school programs in underserved areas of Kern County. Twice a month during the school year, students at Tevis Jr. High School prepare snacks under the supervision of parents and teachers. These brown bag lunches are then delivered to the CHW Learning Center for distribution to a variety of after school programs. Program: School Supportive Services Description: The School Supportive Services Program provides support to Elementary, Junior High and High Schools throughout Kern County by sponsoring events, providing clothing and shoes and offering educational in-service presentations to students and their families. Program: Translation Services Description: The Translation Services Program provides translation of correspondence, business documents, and general written materials for individuals in the underserved population who need assistance in understanding the written word. Program: Value Enhancement Program Description: The Value Enhancement Program (VEP) is designed to develop a young person's self-worth and a sense of pride by providing needed community service. As a not-for-profit organization dedicated to improving the quality of life, BMH reinvests all its operating and investment income in hospital improvements, technology enhancements, community health programs, and employee benefits. This active reinvestment makes it possible for us to deliver on our mission, including ensuring that everyone has access to health care. Medical staff privileges are open to physicians whose experience and training are verified through a credentialing process. The process gathers and verifies credentials, allows the medical staff to evaluate an applicant's qualifications, previous experience, and competence, and to ultimately make a decision to grant or deny medical staff membership and clinical privileges. Credentials verification is the determination whether a practitioner's credentials are authentic and valid. BMH is guided by a fiduciary board. The board is responsible for ensuring that community health is one of the major goals in the strategic planning process. All of BMH Board of Directors reside in the primary service area. They are a diverse group that includes community members, physicians, faith based representatives, and business health executives who provide a broad spectrum of perspectives on plans presented for their approval. Caring for the community beyond the hospital walls led to the founding, in 1991, of the Department of Special Needs & Community Outreach. Today, the department operates more than 58 programs in Bakersfield, Arvin, Shafter, McFarland, Delano, Lake Isabella, Ridgecrest, Taft, and other outlying communities in Kern County where there is limited access to health care and related services. With 24 employees (20.5 FTEs) and an annual budget of $1,110,807, the department's programs target low income, uninsured, or underinsured individuals, as well as Kern County citizens with unmet health needs, including migrant farmworkers and other disenfranchised populations. The department frequently collaborates with more than 80 public, private, and nonprofit organizations. Our outreach program completed a national pilot project for Advancing the State of the Art in Community Benefit (ASACB) by demonstrating and researching best practices regarding community benefit programs. A Community Benefit Committee assists the Department of Special Needs & Community Outreach in prioritizing programs that are in line with the hospitals' strategic plans. Committee members include representatives of the hospitals' Executive Management Teams, the business community, social service agencies, community volunteers, CHW board members, and employees. This group meets four times annually to help ensure that our outreach services respond to identified community needs and are effectively working to improve the overall health status of the community. The Committee provides input, advice, and approval for the Community Benefit Plan. The approved plan is then submitted to the Bakersfield Memorial Hospital Board for final approval. BMH is affiliated with CHW. Affiliates of CHW also promote the health of additional communities in Bakersfield, San Bernardino, San Francisco, San Andreas, and Grass Valley/Nevada City, California. These affiliates follow practices similar to those noted above in determining the unmet healthcare needs of their communities. Total unsponsored community benefit expense for CHW and its subordinate corporations for the year ended June 30, 2010, is as follows: Persons Net Comm % of Served Benefit Exp excl Bad Debt Benefits for the Poor: Traditional Charity Care 110,381 142,746,446 1.7% Unpaid Costs of Medicaid/Medi-Cal 944,650 558,385,256 6.5% Other Means-tested Programs 269,294 56,864,415 0.7% Community Services: Community Health Services 553,419 48,887,807 0.5% Health Professions Education 21,746 6,431,872 0.1% Subsidized Health Services 212,434 36,161,087 0.4% Donations 256,564 8,509,998 0.1% Community Building Activities 69,194 1,805,508 0.0% Community Benefit Operations 11,547 5,645,250 0.1% Total Community Services for the poor 1,124,904 107,441,522 1.2% Total Benefits for the Poor 2,449,229 865,437,639 10.1% Benefits for the Broader Community: Community Services: Community Health Services 2,464,586 19,716,268 0.2% Health Professions Education 49,929 46,618,328 0.5% Subsidized Health Services 114,349 13,649,835 0.2% Research 23,285 27,190,380 0.3% Donations 158,111 3,762,689 0.1% Community Building Activities 77,077 6,774,273 0.1% Community Benefit Operations 95,948 2,000,665 0.0% Total Benefits for the Broader Community 2,983,285 119,712,438 1.4% Total Community Benefits 5,432,514 985,150,077 11.5% Unpaid Costs of Medicare 995,245 345,619,895 4.0% Total Community Benefits including Cost of Medicare 6,427,759 1,330,769,972 15.5% CA true Bakersfield Mercy Hospital 2201 Truxton Ave Bakersfield CA 93301 941196203 501 (c) (3) 7940 0 n/a n/a Advocacy for Poor Bakersfield Memorial Hospital Auxiliary 420 34th Street Bakersfield CA 93301 951802779 501(c)(3) 12350 0 n/a n/a Hospital Support AMERICAN GENERAL MEDIA PO Box 2700 Bakersfield CA 93308 201232360 N/A 5250 0 n/a n/a Svc for poor CYSTIC FIBROSIS FOUNDATION 6420 Wilshire Blvd 1st Fl Los Angeles CA 90048 131930701 501 (c) (3) 6000 0 n/a n/a social health TERRIO THERAPY FITNESS PO Box 13310 Bakersfield CA 933893310 912073074 N/A 10500 0 n/a n/a Personal Health American Heart Association 404 Truxtun Ave Bakersfield CA 93301 135613797 501 (c) (3) 33030 0 n/a n/a Personal Health 39 6 PART I - GENERAL INFORMATION ON GRANTS & ASSISTANCE PART I, LINE 2: Donations are provided to the community to further the mission of the hospital and support various community programs. Bakersfield Memorial Hospital provides donations to support community programs through its Special Needs department and by donating directly to various community events and programs. Special Needs The director of Special Needs reviews and approves all grants and donations related to its department. Once the grant/donation is provided no further tracking is conducted as the organizations receiving the grant are charitable organizations. Donating Directly to Community Events/Programs The Vice President and Manager of Business Development review and evaluate donations made directly to the community from the hospital. Organizations seeking donations may be charitable or non-charitable. The following are the criteria that Business Development use to evaluate donations: 1. Relevancy to healthcare 2. Further the hospital's mission 3. Provide a community benefit (i.e. health education) and/or improve the lives of the community in which the hospital serves 4. Opportunity for the hospital to build and foster relationships in the community to further its mission The cost-benefit of the donation/grant is reviewed. Afterwards, a member of the senior management team (VP Business Development, CFO, or President) approves the transactions. The Bakersfield Memorial Hospital's President approves any donation greater than $5,000. X true true true true false false false false false false false Russell Judd 0 347126 0 230116 0 9534 0 37621 0 27597 0 651994 0 0 Jon Van Boening 0 351289 0 191072 0 30197 0 35589 0 36384 0 644531 0 0 Jesica Hanson 167701 0 36388 0 425 0 10837 0 16250 0 231601 0 0 0 Terri Church 179128 0 27806 0 929 0 13706 0 5729 0 227298 0 0 0 Sheri Comaianni 159601 0 33311 0 2601 0 10385 0 5943 0 211841 0 0 0 Dr Robert Marshall 228423 0 45894 0 6553 0 14825 0 12492 0 308187 0 0 0 Bruce Peters 210748 0 42840 0 9134 0 20618 0 16393 0 299733 0 0 0 Whabong Anderson 259631 0 2469 0 2370 0 16562 0 5702 0 286734 0 0 0 Editha Lolin 226248 0 14764 0 8199 0 16333 0 9231 0 274775 0 0 0 David J Lozano 163072 0 24920 0 8718 0 16407 0 12008 0 225125 0 0 0 Karen J Simpson 198749 0 2424 0 17 0 10485 0 5551 0 217226 0 0 0 Gena L Cook 170431 0 9729 0 401 0 12763 0 15951 0 209275 0 0 0 Jim Eppink 40651 0 0 0 100390 0 3110 0 3977 0 148128 0 0 0 PART I, LINE 1A and Line 3 Part I, Line 1A Club dues have been paid by the organization for business use by one director/officer, who is the service area leader, for recruiting and business entertainment purposes. No amounts have been included as reportable income as expenses related to personal usage are paid by the employee. Part I, Line 3 Although the organization employs personnel, the Organization relied on a related organization, Catholic Healthcare West, that used one or more of the methods described in Schedule J, Part I, Line 3, to establish the Organization's Service Area Leader's compensation. See Schedule O disclosure for Form 990, Part VI, Section B, Line 15a for additional information. PART I, LINE 4a The organization's key employees and its highest compensated employees participate in a severance plan that provides fair compensation, ranging from payments of 2 months to 12 months of base compensation, depending on the executive's position, in the event of a position elimination or other involuntary termination, in accordance with the guidelines of the plan. Payments pursuant to the plan arrangement for one former key employee occurred during 2009; J. Eppink $82,503. PART I, LINE 4b The organization's key employees and certain officers and highly compensated employees hired prior to June 30, 2006 are eligible to participate in the CHW Executive Deferred Compensation Plan, a nonqualified 457(f) plan which is intended to provide a benefit approximating the difference, if any, between the benefit provided under the CHW excess benefit plan and the benefit provided under the qualified benefit plan that substantially replaced the excess plan. No benefit will vest under the 457(f) plan before the latter of the attainment of age 62 while employed or the completion of 15 years of service. PART II, SUPPLEMENTAL DISCLOSURES The organization's executive compensation philosophy is designed to assist the organization in attracting and retaining the caliber of executives required to enable the organization to fulfill its mission of providing high quality healthcare for all persons regardless of their ability to pay for services, improving the quality of life in the communities the organization serves, promoting employee satisfaction, and ensuring financial stability. A substantial portion of executive compensation is performance based and is linked to organizational goals approved in advance by the Compensation and Benefits Committee. These goals include attainment of annual and long-term financial performance, certain healthcare quality standards and the organization's commitment to serving the poor and disenfranchised in the communities it serves. Total compensation, which includes base salary, annual and long-term incentive compensation, targets the 75th percentile of the market in which the organization competes for executives, commensurate with the size and complexity of the organization. CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY 521598225 13033FTN0 2004-05-19 150000000 NEW MONEY TO VARIOUS PROJECT & MED false false CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY 521643828 13033FYE4 2005-11-10 200000000 NEW MONEY TO FINANCE CAPITAL EXPEN false false 10054205 0 0 0 0 0 10054205 2006 false false true true 26804899 0 0 0 0 0 26804899 2008 false false true true false true true true true 0.00000 0.00000 0.00000 true false true true true true 0.00000 0.00000 0.00000 true false true false false true false true true false false true false Jon Van Boening BOARD MEMBER/OFFICER SEE SCHEDULE O false Bruce Peters OFFICER SEE SCHEDULE O false Jesica Hanson KEY EMPLOYEE SEE SCHEDULE O false Javier E Miro MD Inc BM, J MIRO IS SOLE OWNER 27000 MEDICAL SERVICES false PART VI - GOVERNANCE, MANAGEMENT, DISCLOSURE SECTION A, LINE 6: The sole corporate member is Catholic Healthcare West, a 501(c)(3) exempt organization. SECTION A, LINE 7A: CHW, as the sole corporate member, ratifies the selection of members and the CHW Board approves new Board members of the organization. SECTION A, LINE 7B: Reserved rights of the corporate member include adoption of mission and philosophy statements, amendment or restatement of articles of incorporation and bylaws, dissolution of the corporation, acquisition of another corporation, creation of a new subsidiary, merger or consolidation with another corporation, participation as a general or limited partner in any venture, incurring long-term indebtedness in excess of normal operating requirements, ratification of board member appointments and dismissals, selection and removal of independent auditors, and transactions outside the ordinary course of business. SECTION B, LINE 11A: The Board of Directors has delegated the review of the Form 990 to the Finance and Planning Committee. The organization's CFO and Controller worked closely with the Parent Organization and AN INDEPENDENT accounting firm it engaged to review the return and presented each section of the final draft of Form 990, excluding compensation schedules to the Finance and Planning Committee. Subsequent to its review, the Finance and Planning Committee reported back to the Board regarding its oversight of the Form 990 and the final draft, excluding compensation schedules was provided to the entire voting Board before the return was filed. SECTION B, LINE 12C: The Organization has adopted CHW's Conflicts of Interest Policy. The Organization's Board is charged with monitoring proposed or ongoing transactions for conflicts of interest and addressing any potential or actual conflicts. Pursuant to the conflicts of interest policy, an annual conflict of interest disclosure statement, aimed at determining any family and business relationships and transactions, or other transactions that may pose a potential conflict, is distributed to all covered persons (e.g., board members, officers and executive leadership, key employees and all management personnel whose responsibilities include business decisions which may give rise to conflicts of interest). Covered persons are also required to disclose real or potential conflicts at the time such conflicts arise. When an individual becomes a covered person and annually thereafter, each covered person is required to submit an updated disclosure statement and to sign a statement affirming that he/she: (1) has received a copy of the conflicts of interest policy; (2) has read the policy and understands said policy; and (3) agrees to comply with all requirements of the policy, including completing the conflicts of interest disclosure statement. The completed questionnaires are reviewed by CHW's Legal Department and any persons with actual or potential conflicts are informed via written communication. The procedures for addressing any conflict of interest related to a proposed transaction include, but are not limited to, the following: (1) the conflicting interest is fully disclosed to the board; (2) the interested person responds to factual questions related to the substance of the transaction or arrangement being considered, after which he/she shall leave the meeting; (3) the person with the conflict of interest is excluded from the discussion and approval of such transaction; (4) if warranted, alternatives to the proposed transaction are investigated, and competitive bids or comparable valuations are obtained; (5) any conflicting issues arising during the course of a board meeting which cannot be resolved are to be referred to an independent committee of the Board of Directors; and (6) the transaction or action must be approved by a majority of disinterested persons. All conflicts of interest, whether resolved or unresolved, are reported in the Organization's Form 990. SECTION B, LINE 15A: Although the organization employs personnel, the Service Area Leader is compensated by Catholic Healthcare West (CHW). CHW's Compensation and Benefits department conducts an annual review and analysis to provide benchmarking data for the total compensation and benefits package of the Service Area Leader. Appropriate comparability data for similar jobs in peer companies (both taxable and tax-exempt) is obtained from independent third-party survey sources. SECTION B, LINE 15B: Compensation of other Key Employees is based on a comprehensive EVALUATION FOCUSING ON ALL ASPECTS OF THE INCUMBENT'S ASSIGNED DUTIES AND assessed performance in carrying out the philosophy and mission of CHW and its sponsoring congregations. Additionally, comparative data and market surveys regarding compensation in the surrounding marketplace are considered. The salaries are finalized by the Service Area Leader in coordination with the organization's VP of Human Resources. SECTION C, LINE 19: Federal tax laws do not mandate that the organization's governing documents, conflict of interest policy and financial statements be made available for public inspection. The organization makes its financial statements available upon request. Sch L, Part IV GemCare-Mercy-Memorial Health System, LLC: Effective January 1, 2010, Bakersfield Memorial Hospital, a California nonprofit public benefit corporation, and CHW d/b/a Mercy Hospitals of Bakersfield, entered into an LLC Operating agreement with GemCare Holdings, Inc. and Managed Care Systems, LLC. This Operating agreement formed GemCare-Mercy-Memorial Health System, LLC (GMMHS). The purpose of this business venture is to pool the resources of each owner to promote community health and expand the healthcare system. In exchange for GMMHS' shares, Bakersfield Memorial Hospital contributed $7,252,500, resulting in an ownership interest of 25%. Upon the creation of this venture, the Chief Executive Officer became a member of the Board of Directors. GemCare Holdings provides insurance coverage for Bakersfield Memorial Hospital's employees. Managed Care Systems administer those benefits. Millennium Surgery Center: Effective January 1, 2010, Bakersfield Memorial Hospital, a California nonprofit hospital, entered into a stock purchase agreement with Millennium Surgery Center, Inc., an ambulatory surgery center. The purpose of this joint venture is to provide medical, surgical, and related healthcare services in Bakersfield, CA. BMH contributed $7,050,000 in exchange for 60% of the stock of Millennium Surgery Center. This transaction resulted in Bakersfield Memorial Hospital becoming a majority shareholder in this venture. Upon the creation of this venture, the Bakersfield Memorial Hospital's Chief Executive, Operating, and Finance Officers became members of the Millennium Surgery Center's Board of Directors. Also on January 1, 2010, Bakersfield Memorial Hospital entered into a consulting agreement with Millennium Surgery Center for the administration and negotiation of the surgery center's managed care program. Jon Van Boening is a member of the GMMHS Board. Jon Van Boening, Jesica Hanson, and Bruce Peters are members of the MSC's Board. These individuals who are directors of Millennium Surgery Center and GMHHS do not receive compensation payment for their services. Sch R, Part V, Line 2 1) Bakersfield Memorial Hospital provided managed care consulting services to Millenium. These services were paid based on contract terms established by current market value of such services. 2) Amounts included were related to shareowner distributions. The Millenium's CEO and CFO reviewed the quarterly financials to determine the amount of the distribution. After the CEO and CFO reviewed the amount for distribution, this information was provided to the Board of Directors for approval. 3) The FMV analysis was used to determine the capital contributions for Millennium. The appraisals/FMV evaluations were performed by an external and reputable organization. Sch K, Part IV Bond Issuance A (Issuer EIN: 52-1598225) Part II, Line 5 Issuance costs were paid with equity (cash), not with bond proceeds. Part IV CALCULATIONS PERFORMED BY ARBITRAGE CONSULTANT AND THERE WAS NO REBATABLE ARBITRAGE LIABILITY SO NO FORM 8038-T FILED Catholic Healthcare West 185 Berry Street San Francisco CA 94107 941196203 Hospital CA 501(c)(3) 3 NA Bakersfield Memorial Hospital Foundation 420 34th Street Bakersfield CA 93301 953555043 Fundraising CA 501(c)(3) 11a NA Kern Home Health Resources 26220 Enterprise Court Lake Forest CA 92630 330184040 Home infusion CA NA INVESTMENT 386539 521304 false 0 true MILLENNIUM SURGERY CENTER INC 9300 STOCKDALE HWY STE 200 BAKERSFIELD CA 93311 770513445 AMBULATORY SURG CA NA S CORP 0 0 0.60000 false false true false true false false false false false true true true false true false true true MILLENNIUM SURGERY CENTER INC r 352568 MILLENNIUM SURGERY CENTER INC k 7050000