2011-05-13T09:12:10-07:00 2010-06-30 990 2009-07-01 231352155 ALTOONA REGIONAL HEALTH SYSTEM ALTO 8148894101 620 Howard Avenue Altoona PA 16601 Charles Zorger 8148894101 2011-05-16 2009 2016-02-24 21:20:13Z Gerald Murray 620 Howard Avenue Altoona PA 16601 413327250 0 X http://www.altoonaregional.org X 1942 PA The Altoona Regional Health System provides inpatient and outpatient, hospital-based, health care services primarily to the residents of central Pennsylvania, as well as residents of neighboring areas. 14 11 2779 600 0 0 1778159 1553440 309733659 314066611 533254 2162106 1907669 3321152 313952741 321103309 0 0 0 0 149643076 157539536 0 0 0 156366197 158292264 306009273 315831800 7943468 5271509 222454726 281673759 111886814 169912801 110567912 111760958 The mission of the Altoona Regional Health System is for exceptional people to provide exceptional health care. 0 0 50136342 0 40022373 Inpatient Care: Inpatient care was provided to 20,437 inpateints including newborns. The System had 91,358 patient days. Inpatient care was provided through 20 nursing units 45580625 0 30817214 Surgical Services - inpatient and out patient surgery, including: operating room, surgery center, endoscopy, peri-anesthesiology, anesthesiology, same day surgery, perfusion services. total surgical procedures are 23,122 17395529 0 12188668 Imaging Services - also known as radiology services is comprised of general xray, mammography, ultrasound, nuclear medicine, CT and MRI. The system performed 165,253 imaging studies. 17510716 0 31499841 Pharmacy Services 14711302 0 0 Bad Debts 16856944 0 18942435 Emergency Room Department 63211461 0 180596080 All Other 112290423 0 231038356 225402919 1 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 0 0 1 1 0 1 1 0 0 0 0 0 1 1 0 0 0 0 0 1 1 0 0 1 254 0 1 2779 1 0 0 0 0 0 0 0 0 0 1 1 14 11 1 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Accounting Dept-ARHS 8148894100 620 Howard Avenue Altoona PA 166024899 Charles Haas MD 1 X 0 0 0 Robert Halbritter 1 X 0 0 0 Thomas Morris 1 X 0 0 0 Robert Montler 1 X 0 0 0 Thomas G Peoples 1 X 0 0 0 Benjamin Levine 1 X 0 0 0 Joseph M Reilly CPA 1 X 0 0 0 Vincent Turiano 1 X 0 0 0 Donald Devorris 1 X 0 0 0 Robert E Wertz MD 1 X 0 369990 49439 R Samuel Magee MD 1 X 2681 0 0 Ann Benzel 1 X 0 0 0 Sister Anne Lutz 1 X 0 0 0 Mitchell Joseph 0 X X 0 258834 24570 Gerald E Murray 50 X 514281 0 210844 Charles R Zorger 45 X X 361894 0 90783 David L Cowger MD 45 X 345367 0 65279 Gary Naugle 45 X 218914 0 59558 Ronald J McConnell 45 X 330499 0 77039 Matthew P Bouchard MD 50 X 427858 0 29923 Adam Blescia 50 X 307615 0 26614 Linnane Batzel MD 50 X 295588 0 23268 Mohammad Arshad MD 50 X 374020 0 30468 Matthew Murphy MD 50 X 289351 0 29368 Janelle Brumbaugh 0 X 0 299099 33583 Thomas Mextorf 0 X 0 306562 39608 3468068 1234485 790344 71 1 1 0 Aramark 12483 COLLECTIONS CENTER DRIVE Chicago IL 60693 Biomedical Services 2963571 Siemens Medical Solutions 51 Valley Stream Parkway Malvern PA 19355 IT Services 6611997 Mayo Collaborative Services PO BOX 9146 MINNEAPOLIS MN 55480 Laboratory Services 1912237 Alpha Systems 458 Pike Road Huntington Valley PA 19006 IT Services 1286626 Hayes Large Architects LLP 3601 5th Avenue Altoona PA 16602 Architectural Services 1665926 51 0 0 0 0 1419405 134035 0 1553440 Acute Inpatient Revenue 622000 35229597 35229597 0 0 Inpatient Ancillary Revenue 622000 114321130 114321130 0 0 Operating Room Revenue 622000 28673887 28673887 0 0 Radiology 622000 35533880 35533880 0 0 Outpatient Ancillary Revenue 622000 68927487 68927487 0 0 31380630 31380630 0 0 314066611 67059 0 0 67059 0 0 0 0 0 0 0 0 232825 0 0 0 232825 0 232825 232825 0 0 94318988 0 92223941 0 2095047 0 2095047 0 0 2095047 0 Cafeteria Sales 622000 1004701 1004701 0 0 Parking Garage Revenue 622000 218331 218331 0 0 Behavioral Health Community 622000 108108 108108 0 0 1757187 1757187 0 0 3088327 321103309 317387763 0 2162106 2712805 2712805 115499945 92815580 22684365 0 8136200 6470342 1665858 0 22698191 16564106 6134085 0 8492395 6738181 1754214 0 1155616 89208 1066408 0 621601 0 621601 0 81777 0 81777 0 0 0 0 0 0 0 0 0 0 0 11598939 8659070 2939869 0 467900 0 467900 0 3117520 1135146 1982374 12826735 1752027 11074708 0 0 0 0 0 4188304 494764 3693540 0 311584 262864 48720 0 0 0 0 0 125643 85891 39752 0 1383508 0 1383508 0 0 0 0 0 14140510 0 14140510 0 3483459 3441629 41830 0 Bad Debt Expense 14711302 14711302 0 0 Contract Labor 1036748 1035563 1185 0 Supplies 68538933 65266209 3272724 Purchased Services 12517676 5881037 6636639 0 Miscellaneous 7984509 0 7984509 0 315831800 225402919 90428881 0 8107854 8354337 34799353 35383564 3598170 3091784 4916871 5014524 279733035 193300371 78624139 86432664 66795215 113144265 2876033 3596591 381301 1665935 22355790 24990095 222454726 281673759 24722343 26298197 36321130 89986471 188339 316320 50655002 53311813 111886814 169912801 X 110463556 111686308 104356 74650 0 0 110567912 111760958 222454726 281673759 X 0 1 1 X 1 1 X 104356 90067 502 0 120275 0 74650 1169242 130429 -132651 0 1062664 0 104356 0 0 1 0 0 0 3189630 3189630 0 112524210 81059773 31464437 0 3438740 2653009 785731 0 144054181 109587589 34466592 0 16526274 0 16526274 86432664 2926952 F 669639 F 3596591 Other Receivables 3038086 Intercompany Receivables 4881351 Due From Related Party 1429 Beneficial Interest in the Net Assets of the Central PA Medical Foundation 17069229 24990095 0 Estimated third party payor settlements 3242175 Accrued Pension Liability 47224381 Other liabilities 2845257 53311813 321103309 315831800 5271509 2685721 0 0 0 -6734478 -4048757 1222752 321103309 0 0 0 0 0 321103309 0 0 0 321103309 315831800 0 0 0 0 0 315831800 0 0 0 315831800 SchD_P05_S00_L04 Schedule D, Part V, Line 4 Approximately $44,800 of the fund is for Bioterrorism preparedness. The remaining amount, approximately $29,850 is primarily for Medical Staff continuing medical education. SchD_P10_S00_L00 Schedule D, Part X N/A SchD_P11_S00_L08 Schedule D, Part XI, Line 8 Minimum Pension Liability Adjustment (3,151,495) Debt Forgiveness of Related Organization (10,500,000) Net Cash Infusion to Related Organization (2,115,000) Change in Benenficial Interest in Net Assets of Central PA Medical Foundation 9,032,017 1 1 0 0 1 1 0 1 1 1829593 0 1829593 0.0058 37816785 21196147 16620638 0.0526 0 0 0 0 0 0 39646378 21196147 18450231 0.0584 1574497 82830 1491667 0.0047 3848174 3035354 812820 0.0026 31664705 23173312 8491394 0.0269 0 0 0 0 428857 0 428857 0.0014 0 0 37516233 26291496 11224738 0.0356 0 0 77162611 47487643 29674969 0.0940 26871 0 26871 0.00009 0 0 0 0 8761 0 8761 0.00003 171 0 171 0.000 3200 0 3200 0.00001 0 0 0 0 1976 0 1976 0.00001 376 0 376 0 650 0 650 0 0 0 42005 0 42005 0.00014 0 4524704 113575 42321902 44574457 -2252555 X 1 1 Altoona Regional Health System

620 Howard Avenue Altoona PA 16601

X X X Charity care will be extended to patients who are determined to be financially indigent. The determination will be based on poverty guidelines published by the federal Register. Charity care may reduce the patients bill by 25%, 50%, 75%, or 100% based on financial information received. 2 costing methodologies were used: 1. actual expenses and 2. cost to charge ratio - derived from Worksheet 2 - ratio of patient care cost to charges also cost from Medicare 2010 cost report. ARHS included in the subsidized health services costs attributable to its 2 physician clinics (AFP and Williamsburg) and its women's health center. AFP Cost 4,310,902, Williamsburg Cost 889,451, Women's Health Center 581,141 (these include all actual expenses) 14,711,302 Footnote text: The Hospital reports patient accounts receivable for services rendered at net realizable amounts from third-party payers, patients and others. The Health System provides an allowance for doubtful accounts based upon a review of outstanding receivables, historical collection information and existing economic conditions. As a service to the patient, the Health System bills third-party payers directly and bills the patient when the patient's liability is determined. Patient accounts receivable are due in full when billed. Accounts are considered delinquent and subsequently written off as bad debts based on individual credit evaluation and specific circumstances of the account. Lines 2 and 3: Bad debt cost - bad debt expense minus any recoveries times the ratio of patient care cost to charges. We consider 100% of the Medicare shortfall to be a community benefit. The costing methodology is the allocated costs for from the 2010 Medicare Cost Report. If a patient contacts the hospital and indicates an inability to pay in full, a payment arrangement is utilized to help the patient pay off the bill within 3-12 months. If the account can not be paid off in 3-12 months, a minimum amount of $50 per month is required. If the patient is unable to meet this schedule, they will have to provide budget information to justify a lower payment. Needs Assessment: Altoona Regional Health System (ARHS) helped form and actively supports and participates in the Blair County Community Needs Assessment Partnership (Partnership). The Partnership is comprised of over 50 community agencies, organizations, and services. The Partnership was formed in 2007 to conduct comprehensive community needs assessments, review and analyze data, formulate strategies to meet identified service gaps and needs, implement strategies to meet identified needs, and conduct subsequent post-implementation surveys to determine effectiveness of programs and services implemented. An assessment of the communities' healthcare needs are part of the initial and follow-up survey processes and involve a household survey, focus groups, and survey of local businesses. Patient education of eligibility for assistance: the Health System informs and educates patients, their families, and others regarding eligibility and the application process for federal, state, and local governmental financial assistance programs; as well as health system financial assistance programs and charity care available, through the following means: a) printed information is contained in the Patient Guide book given to all hospital inpatients; b) financial counseling services are available to all patients, at no cost, by the staff of the Patient Financial Services Department; c) the health system contracts with a special consultant/company to assist patients to complete and file Medical Assistance applications; d) the health system has extensive charity care provisions which are available to all patients and are based on eligibility criteria; e) the health systems displays at all patient care service entrances the U.S. Department of Health & Human Services, Public Health Service notice regarding: Medical Care for Those who Cannot Afford to Pay Notice; f) Patient Rights and Responsibilities Posters are prominently displayed in all patient care areas and patient rooms which contain patients rights including the right to care without regard to ability to pay; g) an Open Admission policy prominently displayed in patient care areas which states the health system's responsibility to provide care to all patients without regard to their ability to pay. Community Information: Altoona Regional Health System (ARHS) serves approximately 250,000 individuals in central Pennsylvania. This service area encompasses all of Blair County and portions of the following 7 contiguous counties: Bedford, Cambria, Centre, Clearfield, Fulton, and Huntingdon counties. Approximately 16.2% of the service area population is age 65+, 16.5% of the population are eligible for medical assistance, and 14.8% of the population has income below the poverty level. The cost of living is low compared to national averages, the public educational system is outstanding, and there is an abundance of local colleges and universities. Within the service area there are Medically Underserved Area(s)/Medically Underserved Populations (MUA/MUP) as well as Health professional Shortage Area(s) (HPSAs). Within the service area there are 2 additional, smaller (25 - 50 bed) community hospital that provide routine, primary care, services to their respective communities. These hospitals refer higher acuity patients to Altoona Regional Health System, as it is a 500-bed, regional health care system which provide regional/tertiary care services. Community building activities: ARHS community building activities promote the health of the community we serve in the following ways: a) physical improvement and housing: participation in community revitalization efforts, use of health system owned properties/houses by other non-profit community organizations; b) community support: sponsorship of community watch groups, assistance in disaster readiness, community support mentoring programs; c) environmental improvements: wilderness first aid training; d) leadership development and training for community members: education and training of various community audiences regarding health and wellness issues, participation of community and organizational board; e) community health improvement advocacy: participation and leadership in community based advocacy groups; f) workforce development: participation in community-wide awareness/education efforts and campaigns, education and training of community ambulance service providers. ARHS promotes the health of the community in the following ways: a) by providing an open medical staff to enable credentialed physician to provide care to patients in our community; b) the entire health system is governed by a voluntary (non-paid) board of directors comprised of members of the local community; c) providing programs and services to help all people lead safer, healthier, happier lives and to care for them in times of crisis. For example: i. community education classes such as the Safe Sitter child-care courses, many programs by physicians on dealing with various conditions and disease, as well as on achieving and maintaining better health for example: free child safety-seat check-ups; ii. Support groups that help people deal with Alzheimer's disease, stroke, cancer, diabetes, grief, mental health issues, and caring for ill loved ones; iii. Self-help programs, such as classes on exercise, nutrition, and quitting smoking; iv. Screenings for osteoporosis, depression, high blood pressure, hepatitis, stroke, heart disease, and colon cancer; v. Free health care for people with no insurance or not enough insurance through Partnering for Health Services Medical Clinic. d) By providing educational and training programs to prepare future health care professionals to serve our community. The health system supports the Altoona Family Physician residency program and local universities and colleges in the training of nurses and other health professionals. e) ARHS supports people and groups in the community: in additional to contributing to events and organizations that improve the community's health, ARHS allow them to use our meeting rooms, supplies and parking areas. ARHS donates food to local food banks, provide assistance to important community services like the homeless shelter, domestic abuse shelter, CONTACT Altoona (referral service to those in need). Some of the events we sponsor include the Blair Unit of the American Cancer Society's events and we provide free emergency care at local events. Affiliated health care system: Altoona Regional Health System is, as defined in the instructions, an affiliated health care system as it includes affiliates under common control that cooperate in providing health care services to our community. The entire health care systems is comprised of 25 companies, corporations, and affiliates that employ approximately 4,000 individuals and collectively include: 2 acute care hospitals that provide routine, primary care services as well as regional/tertiary care services; a home nursing/home health care agency, physician practices, a free clinic, and a non-profit foundation. These entities provide care to thousands of members of our community every year and include: over 20,000 hospital inpatients, over 400,000 hospital outpatient visits, over 400,000 physician office visits, and care to thousands of patients in their homes. X X X 0 1 0 0 0 1 0 0 0 Gerald E Murray 409281 0 105000 0 1588 0 188489 0 20767 0 725125 0 203248 0 Robert E Wertz MD 0 369990 0 0 0 0 0 35000 0 14439 0 419429 0 410651 Charles R Zorger 277893 0 84000 0 961 0 71633 0 18190 0 452677 0 368266 0 David L Cowger MD 266677 0 78690 0 0 0 44911 0 20368 0 410646 0 410815 0 Gary Naugle 178107 0 54000 0 0 0 29441 0 16924 0 278472 0 232304 0 Ronald J McConnell 259999 0 70500 0 0 0 56816 0 20223 0 407538 0 279590 0 Matthew P Bouchard MD 427858 0 0 0 0 0 13000 0 16923 0 457781 0 410434 0 Adam Blescia 307615 0 0 0 0 0 10000 0 16614 0 334229 0 310366 0 Linnane Batzel MD 295588 0 0 0 0 0 2900 0 20368 0 318856 0 0 0 Mohammad Arshad MD 374020 0 0 0 0 0 10100 0 20368 0 404488 0 375034 0 Matthew Murphy MD 289351 0 0 0 0 0 9000 0 20368 0 318719 0 0 0 Janelle Brumbaugh 0 299099 0 0 0 0 0 32500 0 1083 0 332682 0 300735 Thomas Mextorf 0 306562 0 0 0 0 0 24500 0 15108 0 346170 0 352356 Mitchell Joseph 0 258834 0 0 0 0 0 11743 0 12827 0 283404 0 280627 SchJ_P01_S00_L04 Schedule J, Part I, Line 4 The organization contributed to a SERP for the following key employees: Gary Naugle $13,193, Charles Zorger $46,298, Ron McConnel $33,681, David Cowgher $20,735, and Gerald Murray $152,489 SchJ_P01_S00_L06 Schedule J, Part I, Line 6 The Incentive Compansation Program requires a 1% or greater financial operating margin that also covers the overall cost of the organizational incentive compensation program. When incentive compensation is available, and at least 75% of of the senior leader's goals have been achieved, the minimum payout would be 18.75% of base pay and the maximum payout would be 30% (per Board approved capped Mercer compensation program design) Blair County Hospital Authority 251352705 092840HV2 2009-12-03 66371478 capital projects and renovations and partial refunding of 1998 bonds 0 1 66540563 5605366 7230708 0 292082 2167071 50167666 2011 0 1 0 1 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 Richard Wertz MD Son of Board Member 54404 Professional Fees 0 Vicki Wertz Daughter of Board Member 107112 Compensation 0 Lexington Mall Partners LP Director Devorris is a 16% owner of this partnership 378094 Rent 0 Pathology Associates of Blair County Director Haas is the acting director of this company 126788 professional fees 0 Evey Black Dorezas Magee Levine Rosensteel & Mauk LLP Director Levine is a partner at the law firm 16818 legal fees 0 F990_P06_S0A_L02 Form 990, Part VI, Section A, Line 2 Director Devorris, Director Benzel, and Director Wertz all have business relationships. Director Lutz and Director Morris are employed by the same employer, Bon Secours Health System and Director Morris reports to Director Lutz. Director Turiano and Director Montler have a business relationship. F990_P06_S0A_L07a Form 990, Part VI, Section A, Line 7a The parent corporations Central Pennsylvania Health Services Corporation and Bon Secours Health System Inc have input into the nominating process for members of the governing board of the Altoona Regional Health System. F990_P06_S0A_L07b Form 990, Part VI, Section A, Line 7b The parent corporation, Central Pennsylvania Health Services Corporation has some reserved powers to review and approve decisions made by the Altoona Regional Health System Board of Directors. F990_P06_S0B_L11 Form 990, Part VI, Section B, Line 11 The Organization's Form 990 was reviewed prior to its submission, by the Altoona Regional Board of Directors at a special meeting held on May 11, 2011 F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c The Organization annually distributes to all officers, directors, trustees, and key employees, a Conflict of Interest Disclosure Statement which must be completed and returned. These statements are reviewed by legal counsel and the corporate compliance officer to ensure compliance. F990_P06_S0B_L15 Form 990, Part VI, Section B, Line 15 The compensation of the CEO and other members of the Senior Leadership Team are reviewed by the Executive compensation & Benefits Committee of the Board of Directors, with the recommendations presented to the full Board for approval. External compensation benchmarks are utilized, including the use of Mercer Human Resource consultants for each position annually. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 The Organization has a public website - www.altoonaregional.org, and its Board of Directors names, positions, and companies are provided on that website. With regard to financial statements, the Organization annually publishes and makes available to the public, its balances sheets and income statements in its publication - Healthy Living, which is printed and distributed to the public. Additionally, the organization provides an annual Community Benefit Report, that is freely available to the public, which provides an accounting of all of the free and discounted care provided to the poor and those without insurance. Central Pennsylvania Health Services Corporation 620 Howard Avenue Altoona PA 16601 251468814 Support the Health System PA 501c3 11 N/A Altoona Regional Partnership for a Healthy Community 620 Howard Avenue Altoona PA 16601 251842308 medical and dental clinics PA 501c3 3 N/A Altoona Regional Health System Foundation For Life 620 Howard avenue Altoona PA 16601 550787040 Support the health system PA 501c3 11 N/A Central Pennsylvania Medical Foundation 620 Howard Avenue Altoona PA 16601 251454709 support health system PA 501c3 11 N/A Home Nursing Agency Affiliates 201 Chestnut Avenue PO Box 352 Altoona PA 16601 251518698 Home Healthcare PA 501c3 11 N/A Home Nursing Agency Community Services 201 Chestnut Avenue PO Box 352 Altoona PA 16601 251517533 Home Healthcare PA 501c3 9 Home Nursing Agency Affiliates Home Nursing Agency Foundation 201 Chestnut Avenue PO Box 352 Altoona PA 16601 251467014 Support Home Nursing Agency PA 501c3 11 Home Nursing Agency Affiliates Home Nursing Agency Visiting Nurse Association 201 Chestnut Avenue PO Box 352 Altoona PA 16601 251188570 Home healthcare PA 501c3 9 Home Nursing Agency Affiliates Lexington Mall Partners 620 Howard Avenue Altoona PA 16601 510459194 Real Estate PA Lexington One Unrelated 0 0 0 0 0 Lexington Mall Holdings LLC 620 Howard Avenue Altoona PA 16601 270063014 Real Estate PA Lexington One Unrelated 0 0 0 0 0 Altoona Family Inc 2500 Seventh Avenue Altoona PA 16602 251444935 Property Rental PA N/A C -30240 158968 1 Lexington Holdings Inc 620 Howard Avenue Altoona PA 16601 251794386 Holding Company PA Central Pennsylvania Medical Foundation C 0 0 0 Lexington Four Inc 620 Howard Avenue Altoona PA 16601 251793736 holding company for physician practices PA Lexington Holdings C 0 0 0 Blair Medical Associates Inc 1414 Ninth Avenue Altoona PA 16602 251219302 Physician Practices PA Lexington Four Inc C 0 0 0 Lexington Anesthesia Associates Inc 620 Howard Avenue Altoona PA 16601 251897765 CRNA practice PA Lexington Four Inc C 0 0 0 Lexington Orthopedic Associates Inc 620 Howard AVenue Altoona PA 16601 550874905 phyisican practice PA Lexington Four Inc C 0 Lexington Surgical Associates Inc 1701 12th Avenue Altoona PA 16601 233040538 physician practice PA Lexington Four Inc C 0 0 0 Mainline Medical Associates Inc 1400 Ninth Avenue Altoona PA 16601 251439055 physician practice PA Lexington Four Inc C 0 0 0 Northern Cambria Medical Center Inc 1106 Bingler Avenue Northern Cambria PA 15714 251793735 physician practice PA Lexington Four Inc C 0 0 0 Patton Family Medical Center Inc 142 E Carroll Street Carrolltown PA 15722 251793735 physican practice PA Lexington Four Inc C 0 0 0 Lexington Hospitalists Inc 620 Howard Avenue Altoona PA 16601 562584130 physician practice PA Lexington Four Inc C 0 0 0 Lexington One Inc 620 Howard Avenue Altoona PA 16601 251468889 Real Estate PA Lexington Holdings C 0 0 0 Lexington Two Inc 620 Howard AVenue Altoona PA 16601 251555689 Durable Medical Equipment PA Lexington Holdings Inc C 0 0 0 Lexington Radiology Inc 620 Howard Avenue Altoona PA 16601 271440673 physician practice PA Lexington Four Inc C 0 0 0 Allegheny Healthcare Staffing Inc 620 Howard Avenue Altoona PA 16601 271657362 healthcare staffing company PA Lexington Holdings Inc C 0 0 0 Lexington Investments Inc 620 Howard Avenue Altoona PA 16601 270687832 holding company PA Lexington Anesthesia C 0 0 0 0 1 0 1 0 0 0 0 1 1 1 0 0 1 0 1 0 0 Central Pennsylvania Medical Foundation b 2200000 Altoona Regional Partnership for a Healthy Community p 414851 Altoona Regional Health System Foundation For Life n 54821 Altoona Regional Partnership for a Healthy Community n 108818 Home Nursing Agency Visiting Nurse Association k 715568 N/A