2011-05-13T09:56:24-05:00 2010-06-30 ERNST & YOUNG US LLP 190 CARONDELET PLAZA SUITE 1300 CLAYTON MO 63105 990 2009-07-01 710236913 St Joseph's Mercy Health Center STJO 5016221000 300 Werner PO Box 29001 Hot Springs AR 71913 Sara Bradley 2011-05-05 3142901000 2009 2016-02-24 21:20:13Z Timothy Johnsen 300 Werner Hot Springs AR 71913 181069817 false 0928 X http://www.saintjosephs.com/ X 1976 AR St. Joseph's Mercy Health Center provides quality care regardless of race, creed, sex, national origin, handicap, age, or ability to pay 9 7 1909 0 3964562 -11120 1232534 710055 177171080 175732009 -98357 1582259 3657732 3041493 181962989 181065816 0 168948 0 0 84820695 81578875 0 0 166996 95679885 97455614 180500580 179203437 1462409 1862379 102286551 101271170 17717325 15433634 84569226 85837536 St. Joseph's Mercy Health Center ("SJMHC") provides quality care regardless of race, creed, sex, national origin, handicap, age or ability to pay. SJMHC provides free care and/or "subsidized care"; care to persons covered by government programs at below cost; programs to support the community; health education programs and broad community support. false false 118942177 168948 173793216 St. Joseph's Mercy Health Center as a part of the Sisters of Mercy Health System has a long history and tradition of working to improve community health both in the narrow sense of treating illness and the broader sense of other community services. Since 1888 we have responded to the health care needs of individuals in Hot Springs and the surrounding communities, as well as working with others to achieve community health. "Mercy is committed to enhancing access to healthcare services so that all in need are served in a timely and just manner. Our efforts include working collaboratively with other healthcare providers and community organizations to identify and implement solutions, developing internal policies and practices to promote just treatment, addressing the need for greater community outreach in order to provide services at the appropriate level of care, and supporting policy initiatives that make healthcare more accessible." SJMHC provides services to 12,784 inpatients, 42,340 emergency department patients, and 237,944 outpatients. 118942177 true true false true false false false false true true false true false false false false false false false false true true false true false false false false false false false false false false false false true true true false false true 4 0 true 1909 true true true false false false false false false false false 9 7 false false false false true true true true true false false true true true true true true true true false AR X JEANNIE WARE 5016221000 300 WERNER HOT SPRINGS AR 71913 Robert W Aspell MD 60.0 X X 0 238849 36093 Bruce Burton MD 2.0 X 0 0 0 Forrest L Spicher II 2.0 X 0 0 0 Gregory M Asbell 2.0 X 0 0 0 Michael W Ferguson 2.0 X 0 0 0 Monda Barlow 2.0 X 0 0 0 Sally Carder 2.0 X 0 0 0 Sr Ann Hardcastle RSM 2.0 X 0 0 0 Timothy Johnsen 60.0 X X 0 372850 109078 Jerri L Mitchell 60.0 X 0 290263 13200 Sara Bradley 60.0 X 0 0 0 Jonathan R Vitiello 60.0 X 0 316771 38423 Judy Borland MD 60.0 X 306524 0 7980 Brenda Chase 60.0 X 195211 0 61576 Michele Diedrich 60.0 X 165309 0 43561 Mark Larey DO 60.0 X 88352 284395 92044 Patrick McCruden 60.0 X 173240 0 41046 Douglas Ross 60.0 X 448845 0 25581 Kathy Taylor 60.0 X 147193 0 11361 Robert Kleinhenz MD 60.0 X 411339 0 21034 Jonathan Townley 60.0 X 332574 0 23761 James Tutton 60.0 X 335440 0 30999 Eric Vogel 60.0 X 335112 0 31606 Wade C Wernecke 60.0 X 404869 0 22297 Larry Don Alford 0.0 X 0 211270 55903 3344008 1714398 665543 43 true true false Quest Diagnostics PO Box 740709 ATLANTA GA 303740709 Lab Services 588754 Levi Hospital 300 Prospect Avenue HOT SPRINGS AR 719014097 Mngmt Fees - Rehab 510050 Kleen Linens of Ark Inc 225 Malvern Avenue HOT SPRINGS AR 71901 Linen Services 467576 Hot Springs Dialysis 1900 Malvern Avenue HOT SPRINGS AR 71901 Lab Services 448400 Healthtronics Urology Services PO Box 847324 DALLAS TX 75284 LASER SERVICES 439680 9 710055 710055 Patient Service Revenue 621400 171770145 171770145 Non Patient Laboratory 621500 3961864 3961864 175732009 1578790 1578790 0 0 1015724 1015724 1015724 1015724 7470 4001 7470 -4001 3469 3469 0 0 0 CATERING SERVICES 722320 1019760 1017062 2698 MANAGEMENT FEE REVENUE 541610 97497 97497 TRANSPORTATION SERVICES 541900 115458 115458 793054 793054 2025769 181065816 173793216 3964562 2597983 168948 168948 0 0 0 1459296 1065683 393613 0 62161966 52114059 9917118 130789 2849045 2849045 10666561 54669 10610953 939 4442007 1948 4440059 0 187788 240 187548 80856 2340 71466 7050 17386 17386 0 0 753071 236857 514909 1305 0 33816734 32637412 1178587 735 0 0 2000457 403286 1597171 0 0 0 931 931 0 9017315 4384564 4632751 0 System Office Fees 20282299 547887 19734412 Purchased Services 7701978 7053029 648949 EQPMT RENTAL AND MNTNCE 1089052 734796 354256 Taxes 51242 286 50956 BAD DEBT EXPENSE 18886766 18886766 3569739 649407 2894154 26178 179203437 118942177 60094264 166996 0 6885168 22029067 19977559 8503076 148551 3399760 3413315 357025 343464 227987918 160182373 64631868 67805545 2322245 2279622 1043510 417946 102286551 101271170 17717325 15433634 17717325 15433634 X 84544226 85812536 25000 25000 84569226 85837536 102286551 101271170 X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false true 16979 false false false 16979 false Description of Lobbying Activities Schedule C, Part II-B, Line 1(f) The filing organization is a member of and pays dues to the following hospital associations: American Hospital Association, Arkansas Hospital Association, and Catholic Health Association. For the year ended June 30, 2010, dues were $17,791, $63,682, and $31,222, respectively. Approximately 25% of American Hospital Association dues, 17% of Arkansas Hospital Association dues, and 5.46% of Catholic Health Association dues were attributable to lobbying activities performed by these associations. 25000 25000 25000 25000 1.00000 false false false 3042432 3042432 107190021 62575015 44615006 111433006 92468227 18964779 6322459 5139131 1183328 67805545 Intended use of the organizations endowment funds Schedule D, Part V Temporarily restricted net assets are restricted to fund nursing scholarships. Supplemental Information FIN 48 Footnote The consolidated audited financial statements of the Sisters of Mercy Health System, Inc. and Subsidiaries do not include a footnote to report the organization's liability for uncertain tax provisions under FIN 48, as they are deemed immaterial for disclosure. true true X true X 300. true X true true true false true true 7615563 7615563 0.04750 19109577 9924192 9185385 0.05730 26725140 9924192 16800948 0.10480 1665 841350 43750 797600 0.00500 586 611081 611081 0.00380 200 929961 635067 294894 0.00180 108500 108500 0.00070 2451 2490892 678817 1812075 0.01130 2451 29216032 10603009 18613023 0.11610 50000 50000 0.00030 12800 12800 0.00010 20300 20300 0.00010 83100 83100 0.00050 true 4683918 0 76226073 70723903 5502170 X true true ST JOSEPH'S MERCY HEALTH CENTER

300 WERNER HOT SPRINGS AR 71913

X X X St. Joseph's Eligibility Guidelines for Charity Care Discounts: The Federal Poverty Guidelines for income are the basis for determining eligibility for charity care discounts. For example, individuals with incomes below 100% of the Federal Poverty Guidelines will be eligible for free care. Individuals with incomes greater than 100% of the Federal Poverty Guidelines may be eligible for care at discounted rates depending on their income level and/or the amount due to the hospital. Charity/Medical Indigence Parameters: Charity/Medical Indigence parameters are based on Federal Income Poverty (FPL) Guidelines which are updated annually. Generally, no patient's financial responsibility shall be greater than 20% of the household adjusted gross income, subject to an asset test. This determination shall be made per episode of care where income exceeds 300% of the FPL, and, when warranted, in aggregate for multiple episodes. The parameters will be reviewed annually with the FPL updates. The review will include assessment of the sliding scale ranges, maximum out of pockets, and overall impact to the facilities and system. Revisions will be completed as warranted. N/A N/A N/A OUR TOTAL EXPENSE FROM FORM 990, PART IX, LINE 25, COLUMN (A) WAS $179,203,437. THE BAD DEBT EXPENSE INCLUDED IN THIS AMOUNT WAS $18,886,766. THIS LEFT A TOTAL EXPENSE OF $160,316,671 FOR PURPOSES OF CALCULATING LINE 7, COLUMN (F). The text of the footnote that is included in the Sisters of Mercy Health System, Inc. and Subsidiaries audited financial statements that describes bad debt expense follows: "Patient accounts that are uncollected, including those placed with collection agencies, are initially charged against the allowance for uncollectible accounts in accordance with collections policies of the Health System and, in certain cases, are reclassified to charity care if deemed to otherwise meet the health system's charity care policy. The provision for uncollectible receivables is based on management's assessment of historical and expected net collections considering business and economic conditions, trends in healthcare coverage, and other collection indicators. Periodically throughout the year, management assess the adequacy of the allowance for uncollectible receivables based upon the payor composition and aging of receivables as of the reporting date with consideration of the historical payment and write-off experience by payor category. The results of these reviews are then used to make any modifications to the provision for uncollectible receivables to establish an appropriate allowance for uncollectible receivables. After satisfaction of amounts due from insurance, the health system follows established guidelines for placing past-due balances with collection agencies." To determine the amount of bad debt expense, at cost, bad debt expense attributable to patient accounts was multiplied by a ratio of cost to charges. The ratio of cost to charges used was based on detailed cost accounting, where available. Where cost accounting is not available, cost report cost to charge ratios were utilized. The filing organization determined that the estimated amount of bad debt expense (at cost) attributable to patients eligible under the organization's charity care policy is $0. Although the charity care policy requires the participation of the patient requesting assistance, we have a process under presumptive charity (refer to disclosure for Part III, #9b) to address accounts for patients who do not provide the information. We believe that our charity policy is comprehensive enough to capture almost all patients who qualify for charity care. Accounts active in accounts receivable and active with collections agencies are adjusted to charity when patients or guarantors met the guidelines outlined in our policy. Accounts previously written off to bad debt as uncollectible and later returned are not adjusted to charity, unless additional information has been collected by the collection agency. Subsequent events and additional information that would lead to consideration of charity vs. bad debt include bankruptcy filing or death notice with no surviving spouse or estate. Credit reporting agencies will be notified for any changes to account balances that have been previously listed on the patient guarantor credit reports. The Medicare shortfall was computed using the annual prepared Medicare Cost Report; CMS Form 2552-96. It is the position of St. Joseph's that 100% of the short fall should be treated as community benefit. This amount represents cost of providing services that remain uncompensated to the provider. Mercy will utilize the Search America tool to enhance our ability to determine charity qualification. Presumptive charity will be granted in situations where we have been unable to obtain information from our patients or the information provided is not complete enough to make a charity determination. Mercy will utilize presumptive charity prior to bad debt placement for charity adjustments in excess of $10,000. In these cases, Mercy will utilize the Search American report status of "probable charity" as the basis for the assigning the charity level. Mercy will pursue appropriate means in the collection of delinquent accounts from patients with an established ability to pay or an unwillingness to cooperate in validating eligibility for financial assistance, including legal action consistent with Mercy mission and values, which may include liens upon real property and reasonable wage garnishments. Legal actions will generally not include bank garnishment, repossession of assets or foreclosures to enforce satisfaction of lien. Mercy has policies and procedures established to address the initiation of legal action. Mercy annually reviews collection agency compliance with all policies. N/A St. Joseph's Mercy Health System's objectives of community needs assessment are to identify health needs in Hot Springs and surrounding communities, and involve the community in the health planning efforts. The information gathered is used to plan strategically, and better meet the health and human service needs of these communities. St. Joseph's looks at community needs assessment as an opportunity to build relationships educate the community and identify resources that are available to meet identified needs. Basic discussion forums have been utilized to foster conversation with key stakeholders. Examples of forums include an advisory board, specific focus groups, opinion surveys, and community round table discussions. Stakeholder participates include board members, community/civic leaders, local employers, other health care providers, former patients, and co-workers. The filing organization has printed material available at each point of registration in our facility, in addition to electronically availability at our web site. Specific information provided: Financial Assistance Information As a part of our healing ministry, the filing organization is committed to providing quality healthcare services to patients regardless of their financial situation. We offer payment assistance for those who do not have insurance or who are in financial need. Uninsured Patient Discounts A discount from the hospital's regular billed charges will be provided to patients who do not have insurance. This includes patients whose financial situation normally would not otherwise qualify them for charity care discounts. Patients without insurance whose financial situation qualifies them for charity care discounts (see Eligibility Guidelines below) must first find out if they are eligible for Medicaid before applying for financial assistance. Patients denied Medicaid eligibility then must provide certain information to show financial need. Applications for charity care discounts will be reviewed for eligibility based on the applicant's income, family size, amount of payment due and availability of other assets or resources. Please note that care must be medically necessary to be considered eligible for uninsured patient discounts. Eligibility Guidelines for Charity Care Discounts The Federal Poverty Guidelines for income are the basis for determining eligibility for charity care discounts. For example, individuals with incomes below 100% of the Federal Poverty Guidelines will be eligible for free care. Individuals with incomes greater than 100% of the Federal Poverty Guidelines may be eligible for care at discounted rates depending on their income level and/or the amount due to the hospital. Additional Financial Assistance After appropriate discounts have been applied, arrangements may be made for an interest-free monthly payment plan. Generally, no patient's financial responsibility will be greater than 10% of annual household income, adjusted to consider availability of other assets that could be used toward making payments. St. Joseph's Mercy Health Center defines its primary service area as Garland County, with a secondary service area incorporating Montgomery, Pike, Clark and Hot Spring Counties in Arkansas. The majority of St. Joseph's care is delivered to resident of Garland County, the sixth largest county in the state. The total population of Garland County in 2005 was 91,690 with the largest urban area being the city of Hot Springs, population 35,750. Garland County is a popular retirement area and as a result it has a large Medicare population, 18,652 or 20.7% of the population is over age 65. Like many counties in Arkansas, Garland County has a large population of persons who are poor. From 2005 estimates on the census, Garland County had 16.8% of the population at less than 100% of federal poverty levels. There is also a large percentage of "working poor" persons who are employed but do not have health insurance. According to an Arkansas Department of Health Survey, 19.3% of the non-Medicare population, i.e. persons under age 65, do not have health insurance. St. Joseph's, activities include staff time in support of specific health related activities, including but not limited to board membership, grant writing / administrative support, physician recruitment and work force development. Local organizations or activities benefited include, Mercy Pregnancy Clinic, Cooper-Anthony Mercy Child Advocacy Center, Mercy Medicaid Clinic, the Charitable Christian Medical Clinic and National Park Community College. St. Joseph's Mercy co-workers are service oriented and responsive community members. In addition to our traditional acute care service role, St. Joseph's co-worker are involved in a number of community wide events. The health system also donates funds or purchases tables at fund-raising events for organizations such as the Susan G. Komen Foundation, the American cancer Association and the American Heart Association. The filing organization is part of the Sisters of Mercy Health System ("Mercy"). Mercy is a Missouri non-profit corporation with its headquarters ("ministry office") in St. Louis, Missouri. Mercy provides health care services in four states - Arkansas, Kansas, Missouri, and Oklahoma - and has outreach ministries located in Louisiana, Mississippi, and Texas. Mercy's mission is "As the Sisters of Mercy before us, we bring life to the healing ministry of Jesus through our compassionate care and exceptional service." As of June 30, 2010, Mercy facilities included 28 hospitals with 3,718 acute licensed beds (3,300 acute available beds). Mercy facilities offer a wide range of health care services across the system, including inpatient and outpatient care, rehabilitation services, cancer care, trauma care, burn care, skilled nursing, home health and hospice, sports medicine, and neonatal and pediatric intensive care. For the fiscal year ended June 30, 2010, Mercy had more than 6.3 million outpatient visits, more than 1,200 employed physicians, and approximately 28,000 employees, making Mercy the eighth largest Catholic health system in the United States based on net patient service revenue. Mercy is sponsored by Mercy Health Ministry, which is governed by members that include Sisters of Mercy. Many services that are essential to fulfilling Mercy's mission are centralized at the Ministry Office. Such centralized services include Treasury, Information Technology, Clinical Quality Management, Legal and Compliance Counsel, Compensation and Benefits, Consulting, Performance Management, Revenue Management, Capital Management, Clinical Engineering, and Clinical Safety. The centralization of such support services enables Mercy to ensure that each of its communities, whether large or small, has the services it needs. AR KS LA MS MO OK TX false American Cancer Society 115 St Charles Court Hot Springs AR 71901 131788491 501(c)(3) 5260 American Heart Association 92 W Sunbridge Dr Fayetteville AR 72703 135613797 501(c)(3) 24019 Charitable Christian Medical Clinic 133 Arbor Street Hot Springs AR 71901 621671396 501(c)(3) 50000 Garland County Habitat for Humanity PO Box 171 Hot Springs AR 71902 710776139 501(c)(3) 50000 Hot Springs AIDS Resource Center 1801 Central Ave Suite C Hot Springs AR 71901 710778076 501(c)(3) 6600 St John's Catholic School 583 West Grand Hot Springs AR 71901 710539026 501(C)(3) 8000 6 0 Form 990, Schedule I Description of Organization's Procedures for Monitoring the Use of Grants The assistance provided by the filing organization are donations to the listed organizations (in addition to various other miscellaneous donations) that are intended to be used for general operating purposes of the donee. true true false false false false false true false Robert W Aspell MD 0 130705 0 65039 0 43105 0 23060 0 13033 0 274942 0 0 Timothy Johnsen 0 304948 0 62709 0 5193 0 94982 0 14096 0 481928 0 Jerri L Mitchell 0 196641 0 0 0 93622 0 4894 0 8306 0 303463 0 Jonathan R Vitiello 0 241732 0 50149 0 24890 0 29343 0 9080 0 355194 0 Judy Borland MD 33875 0 236161 0 36488 0 7062 0 918 0 314504 0 0 0 Brenda Chase 135137 0 30002 0 30072 0 55815 0 5761 0 256787 0 0 0 Michele Diedrich 124296 0 26782 0 14231 0 30899 0 12662 0 208870 0 0 0 Mark Larey DO 73006 197282 7511 51100 7835 36013 0 77957 4132 9955 92484 372307 0 0 Patrick McCruden 113358 0 23642 0 36240 0 28247 0 12799 0 214286 0 0 0 Douglas Ross 384729 0 23134 0 40982 0 11863 0 13718 0 474426 0 0 0 Kathy Taylor 113096 0 29828 0 4269 0 5961 0 5400 0 158554 0 0 0 Robert Kleinhenz MD 220248 0 0 0 191091 0 9806 0 11228 0 432373 0 0 0 Jonathan Townley 270371 0 28572 0 33631 0 9607 0 14154 0 356335 0 0 0 James Tutton 266976 0 25437 0 43027 0 19380 0 11619 0 366439 0 0 0 Eric Vogel 245033 0 55983 0 34096 0 17452 0 14154 0 366718 0 0 0 Wade C Wernecke 338074 0 32599 0 34196 0 8143 0 14154 0 427166 0 0 0 Larry Don Alford 0 0 0 0 0 211270 0 55903 0 0 0 267173 0 0 Supplemental Information Schedule J, Part I, Question 3 St. Joseph's Mercy Health Center relies on a related organization; refer to Schedule O, Part VI, Question 15A & 15B for the process the related organization follows. Schedule J, Part I, Question 4a The individuals reportable on this return who were provided with severance packages include Larry Don Alford and Jerri L Mitchell. Schedule J, Part I, Question 4b Sisters of Mercy Health System offers supplemental retirement plans to certain executives which provide benefits upon retirement based on compensation, age at the time of benefit commencement, length of service with the company and/or its affiliates, and length of tenure in the plan. The individuals reportable on this return who participate in the supplemental retirement plans include: Timothy Johnsen, Lynne Mitchell, Jon Vitiello, Brenda Chase, Michele Diedrich, Mark Larey, Patrick McCruden, and Larry Don Alford. No persons listed on this return received payment under the plans during the tax year. The amount of all accrued benefits is included in compensation amounts provided in Schedule J, Part II, Column (C). Schedule J, Part I, Question 7 The filing organization provides a non-fixed bonus plan for which certain tiers of its employees are eligible. For fiscal year 2009 (July 1, 2008 - June 30, 2009) payment of all or part of the bonus is contingent upon percentage attainment of (I) personal goals and (II) certain financial targets. For fiscal year 2010 (July 1, 2009 - June 30, 2010), payment of all or part of the bonus is contingent upon attainment of certain financial targets. Payments are made annually in October following (I) the conclusion of the Fiscal Year and (II) determination of the goal achievement (applicable for fiscal year 2009). Bonus opportunities are tiered percentages and are dependent upon the leadership level and attainment percentage. Mercy's attainment of financial goals are validated by an external consulting firm and are then taken into account by the executive compensation committee of Mercy when analyzing executive compensation for reasonableness. Supplemental Information FORM 990, PART V, QUESTION 1A VENDORS FOR THE FILING ORGANIZATION ARE PAID BY THE SISTERS OF MERCY HEALTH SYSTEM (EIN 43-1423050). AS SUCH, ALL REQUIRED FORM 1099 AND FORM 1096 REPORTING IS MADE FOR THE ENTIRE HEALTH SYSTEM (WITH LIMITED EXCEPTIONS) UNDER THE SMHS EIN. FORM 990, PART VI, QUESTION 6, 7A, & 7B DESCR OF CLSES OF MMBRS OR STCKHDS, DEC REQ APPR & TYPE OF VOTING RGTS THE FILING ORGANIZATION HAS A SOLE CORPORATE MEMBER, ST. JOSEPH'S MERCY HEALTH SYSTEM, INC. THE FOLLOWING CORPORATE POWERS AND RESPONSIBILITIES SHALL BE RESERVED SOLELY UNTO THE CORPORATE MEMBER: - TO APPROVE THE MISSION, VISION AND OPERATIVE VALUES OF THE CORPORATION AND OF ANY ORGANIZATION CONTROLLED BY THE CORPORATION; - TO AMEND AND APPROVE THE ARTICLES OF INCORPORATION AND BYLAWS OF THE CORPORATION, AND TO AMEND AND APPROVE THE ORGANIZATIONAL DOCUMENTS OF ANY ORGANIZATION CONTROLLED BY THE CORPORATION; - TO APPOINT AND REMOVE, WITH OR WITHOUT CAUSE, MEMBERS OF THE BOARD; - TO APPOINT AND REMOVE, WITH OR WITHOUT CAUSE, THE CHIEF EXECUTIVE OFFICER OF THE FACILITY; - TO APPROVE OR AMEND THE STRATEGIC PLAN, GOALS, AND OBJECTIVES OF THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION; - TO APPROVE OR AMEND THE OPERATING AND CAPITAL BUDGETS FOR THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION; - TO REVIEW AND APPROVE ANY CAPITAL EXPENDITURES OR RECOMMENDATIONS NOT PREVIOUSLY APPROVED AS PART OF THE CORPORATION'S BUDGETS OR STRATEGIC PLAN; - TO LEASE OR SELL ANY OF THE ASSETS OF THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION IN EXCESS OF ONE MILLION DOLLARS ($1,000,000); - TO ENCUMBER ANY OR ALL OF THE ASSETS OF THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION; - TO AUTHORIZE AND APPROVE THE INCURRENCE OF DEBT BY THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION (OTHER THAN DEBT INCURRED FOR THE ACQUISITION OF GOODS IN THE ORDINARY COURSE OF BUSINESS) AND TO GRANT ANY SECURITY INTERESTS, PLACE ANY ENCUMBRANCES, ENTER INTO ANY COVENANTS, AND EXECUTE ANY DOCUMENTS AND TAKE ANY ACTIONS NECESSARY OR APPROPRIATE IN CONNECTION WITH THE INCURRENCE OF SUCH DEBT; AND - TO MERGE, DISSOLVE, OR ABANDON THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION; AND - TO APPROVE THE CREATION, OWNERSHIP OR ACQUISITION OF, OR AFFILIATION WITH, ANY OTHER ORGANIZATION BY THE CORPORATION. FORM 990, PART VI, QUESTION 11A DESCRIBE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM, USING INFORMATION PROVIDED BY THE FILING ORGANIZATION. A DRAFT FORM 990 IS REVIEWED BY THE FILING ORGANIZATION'S FINANCE TEAM, INCLUDING THE MANAGER OF ACCOUNTING AND THE VICE-PRESIDENT OF FINANCE. THE DRAFT FORM 990 IS ALSO REVIEWED BY THE SISTERS OF MERCY HEALTH SYSTEM'S TAX DEPARTMENT, TO ENSURE ACCURACY AND CONSISTENCY WITH OTHER RELATED ORGANIZATIONS' FORM 990S. AFTER QUESTIONS ARISING FROM THE VARIOUS REVIEWS ARE ADDRESSED AND INCORPORATED INTO THE FORM 990, A REVISED DRAFT IS PROVIDED TO THE FILING ORGANIZATION'S LEADERSHIP TEAM, INCLUDING THE CFO AND CEO, FOR REVIEW. ONCE REVIEWED AND APPROVED BY THE FILING ORGANIZATION'S LEADERSHIP TEAM, THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS FOR REVIEW; IT IS THEN SIGNED AND FILED WITH THE IRS. FORM 990, PART VI, QUESTION 12C DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST CONSISTENT WITH THE CONFLICT OF INTEREST POLICY, THE PRESIDENT OF THE BOARD DISTRIBUTES THE CONFLICT OF INTEREST QUESTIONNAIRE; COMPLETION IS REQUIRED AND DISCLOSURES ARE REVIEWED. FORM 990, PART VI, QUESTION 15A & 15B OFFICES & POSITIONS FOR WHICH PROCESS WAS USED, & YEAR PROCESS WAS BEGUN FOR THOSE CLASSIFIED AS OFFICERS (AND THUS DISQUALIFIED PERSONS), THE ORGANIZATION RELIES UPON SISTERS OF MERCY HEALTH SYSTEM WHICH USES THE FOLLOWING TO ESTABLISH COMPENSATION: EXTERNAL MARKET SALARY SURVEYS, EXTERNAL MARKET SALARY STUDIES, ENGAGEMENT OF AN INDEPENDENT COMPENSATION CONSULTANT, AND REVIEW/APPROVAL OF COMPENSATION BY THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF THE SISTER OF MERCY HEALTH SYSTEM. FOR THOSE CLASSIFIED AS KEY EMPLOYEES, THE ORGANIZATION USES THE FOLLOWING TO ESTABLISH THE COMPENSATION: EXTERNAL MARKET SALARY SURVEYS, EXTERNAL MARKET SALARY STUDIES, AND REVIEW/APPROVAL OF EXECUTIVE MANAGEMENT. COMPENSATION REVIEWS ARE COMPLETED ON AN ANNUAL BASIS, AND A REVIEW WAS COMPLETED DURING THE REPORTING YEAR. FORM 990, PART VI, QUESTION 19 AVAIL GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN PUBLIC GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS HAVE BEEN MADE AVAILABLE FROM TIME TO TIME BUT ARE NOT PUBLISHED PUBLICLY. FORM 990, PART VII, SECTION A, COLUMN B AVERAGE HOURS PER WEEK SEVERAL INDIVIDUALS LISTED IN PART VII ARE DISCLOSED AS TRUSTEES, DIRECTORS, OFFICERS, AND KEY EMPLOYEES ON MULTIPLE FORM 990S OF ENTITIES INCLUDED WITHIN THE SISTERS OF MERCY HEALTH SYSTEM. THE AVERAGE HOURS PER WEEK DISCLOSED IN PART VII IS AN ESTIMATE OF THE HOURS PER WEEK THAT THE LISTED INDIVIDUAL SPENDS ON BOTH THE FILING ORGANIZATION AND ALL RELATED ORGANIZATIONS. FORM 990, PART XI, QUESTION 2B THE FILING ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED IN THE SISTERS OF MERCY HEALTH SYSTEM, INC. AND SUBSIDIARIES ANNUAL FINANCIAL STATEMENT AUDIT. THE SISTERS OF MERCY HEALTH SYSTEM, INC. AND SUBSIDIARIES RECEIVE AN UNQUALIFIED OPINION FROM THE EXTERNAL AUDITORS FOR FISCAL 2010 (THE TAX YEAR CURRENTLY BEING REPORTED). HOWEVER, NO SEPARATE AUDIT OPINION IS ISSUED ON THE FINANCIAL STATEMENTS OF THE FILING ORGANIZATION. THE ULTIMATE RESPONSIBILITY FOR OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT AND SELECTION OF THE EXTERNAL AUDITOR LIES WITH THE FINANCE, AUDIT, AND COMPLIANCE COMMITTEE OF THE SISTERS OF MERCY HEALTH SYSTEM BOARD OF DIRECTORS. AUDIT RESULTS ARE COMMUNICATED TO THIS COMMITTEE. FORM 990, SCHEDULE R, PART V LAWSON ERP SOFTWARE IS THE PRIMARY ACCOUNTING SOFTWARE USED BY SISTERS OF MERCY HEALTH SYSTEM, INC. AND SUBSIDIARIES. THE MAJORITY OF THE INTERCOMPANY/RELATED ORGANIZATION TRANSACTIONS ARE PROCESSED THROUGH LAWSON VIA INTERCOMPANY JOURNAL ENTRIES. WITH THE CURRENT DESIGN OF THE ERP SYSTEM, THERE ARE VARIOUS LIMITATIONS ON THE RELATED ORGANIZATION INFORMATION THAT CAN BE EXTRACTED FROM LAWSON. DUE TO THESE LIMITATIONS, MOST OF THE RELATED ORGANIZATION ACTIVITY FOR THE FILING ORGANIZATION HAS BEEN CLASSIFIED ON SCHEDULE R, PART V, IN LINES O AND P. St Joseph's MRI LLC 300 Werner Street Hot Springs AR 71913 710236913 Dsslvd 8/5/09 AR 0 0 ST J MH CTR St Joseph's PET Center LLC 300 Werner Street Hot Springs AR 72901 470886845 PET/MRI CTR AR 0 0 ST J MH CTR Advance Care Hospital 300 Werner St 3rd Floor Hot Springs AR 71913 710816634 Hospital AR 501(C)(3) 3 SMHS Breech Regional Medical Center 100 Hospital Drive Lebanon MO 65536 431767432 Hospital MO 501(C)(3) 3 St Johns HS Carroll Health Foundation 214 Carter Street Berryville AR 72616 710759301 Foundation AR 501(C)(3) 11a Ozark RG HS Casa de Misericordia 1602 McClelland Street Laredo TX 78044 742912461 Shelter TX 501(C)(3) 7 MM Laredo Healdton Mercy Hospital Corporation 918 South Street Healdton OK 73438 263173902 Hospital OK 501(C)(3) 3 MMHC Laredo Medical Group 14528 S Outer Forty Ste 100 Chesterfield MO 63017 742764726 Inactive TX 501(C)(3) 9 MHS-TX McAuley Portfolio Management Company 14528 S Outer Forty Ste 100 Chesterfield MO 63017 261708048 Invst Mgmt MO 501(C)(3) 11b SMHS Mercy El Reno Hospital Corporation 2115 Parkview Drive El Reno OK 73036 736617948 Leased Hosptl OK 501(C)(3) 3 MHS Mercy Emergency Medical Services Inc 4300 W Memorial Road Oklahoma City OK 73120 810627035 Inactive OK 501(C)(3) 9 MHC Mercy Foundation for Health Innovation 14528 S Outer Forty Ste 100 Chesterfield MO 63017 200901499 Foundation MO 501(C)(3) 11b SMHS Mercy Health Center Foundation 401 Woodland Hills Blvd Fort Scott KS 66701 481077073 Foundation KS 501(C)(3) 11c MHS-KS Mercy Health Center Foundation Inc 4300 W Memorial Road Oklahoma City OK 73120 731593024 Foundation OK 501(C)(3) 11a MHC Mercy Health Center Inc 4300 W Memorial Road Oklahoma City OK 73120 730579285 Hospital OK 501(C)(3) 3 MHS Mercy Health MHMCH Inc 220 Pennsylvania Avenue Columbus KS 66725 270842031 Hospital MO 501(C)(3) 9 MHS-Joplin Mercy Health of Joplin Foundation 2727 McClelland Blvd Joplin MO 64804 270906136 Foundation MO 501(C)(3) 11a MHS-Joplin Mercy Health of Joplin Inc 2727 McClelland Blvd Joplin MO 64804 270814858 Hospital MO 501(C)(3) 9 MHS-Joplin Mercy Health Services Inc 4300 W Memorial Road Oklahoma City OK 73120 141838609 Dslv 6/30/10 OK 501(C)(3) 9 MHC Mercy Health System-Joplin Inc 2727 McClelland Blvd Joplin MO 64804 300584463 Hlth System MO 501(C)(3) 11b SMHS Mercy Health System of Kansas Inc 401 Woodland Hills Blvd Ft Scott KS 66701 480956045 Hospital KS 501(C)(3) 3 MHS-JOPLIN Mercy Health System Northwest Arkansas 2710 Rife Medical Drive Rogers AR 72758 621684203 Phys Group AR 501(C)(3) 11b SMHS Mercy Health System of Texas Inc 14528 S Outer Forty Ste 100 Chesterfield MO 63017 742764727 Inactive TX 501(C)(3) 11b SMHS Mercy Health System Inc 4300 W Memorial Road Oklahoma City OK 73120 731453048 Holding co. OK 501(C)(3) 11b SMHS Mercy Hosp Foundation of Independence 800 W Myrtle Independence KS 67301 481079981 Foundation KS 501(C)(3) 11a MHS-KS Mercy Hospital of Laredo 14528 S Outer Forty Ste 100 Chesterfield MO 63017 741189682 Inactive TX 501(C)(3) 3 MHS-TX Mercy Medical Group 645 Maryville Centre Dr St 100 St Louis MO 63141 431771217 Phys Group MO 501(C)(3) 9 ST JOHN MHC Mercy Memorial Health Center Foundation 1011 14th Avenue NW Ardmore OK 73401 710962525 Foundation OK 501(C)(3) 11a MMHC Mercy Memorial Health Center Inc 1011 14th Avenue NW Ardmore OK 73401 731500629 Hospital OK 501(C)(3) 3 MHS Mercy Ministries of Laredo 2500 Zacatecas Laredo TX 78043 200198462 Outreach TX 501(C)(3) 7 SMHS Mercy Physicians of Oklahoma Inc 4300 W Memorial Road Oklahoma City OK 73120 270473057 Phys Group OK 501(C)(3) 9 MHS MHM Support Services 14528 S Outer Forty Ste 100 Chesterfield MO 63017 202553101 Sup Hlth Sys MO 501(C)(3) 11b SMHS Mission Clinical Services 300 Werner Street Hot Springs AR 71913 134239691 Phys Group AR 501(C)(3) 9 ST JOS MHS Ozarks Regions Health Systems Inc 214 Carter Street Berryville AR 72616 710759299 Hospital AR 501(C)(3) 3 ST JOHNS HS Sisters of Mercy Health System 14528 S Outer Forty Ste 100 Chesterfield MO 63017 431423050 Sup Hlth Sys MO 501(C)(3) 1 NA Sisters of Mercy Ministries 14528 S Outer Forty Ste 100 Chesterfield MO 63017 721069468 Outreach MO 501(C)(3) 7 SMHS St Edward Hlth Fac-Franklin Co 801 W River Street Ozark AR 72949 710689680 Hospital AR 501(C)(3) 3 SEMMC St Edward Hlth Fac-Logan Co 500 E Academy Paris AR 72855 710655753 Hospital AR 501(C)(3) 3 SEMMC St Edward Hlth Fac-Scott Co 1341 W 6th Street Waldron AR 72958 710557895 Hospital AR 501(C)(3) 3 SEMMC St Edward Mercy Clinic Inc 7301 Rogers Avenue Fort Smith AR 72917 261318597 Phys Clinic AR 501(C)(3) 9 SEMHS St Edward Mercy Foundation PO Box 17000 Fort Smith AR 72917 237330425 Foundation AR 501(C)(3) 7 SEMMC St Edward Mercy Health System Inc 7301 Rogers Avenue Fort Smith AR 72917 261318515 Holding Co. AR 501(C)(3) 11b SMHS St Edward Mercy Medical Center 7301 Rogers Avenue Fort Smith AR 72917 710240352 Hospital AR 501(C)(3) 3 SEMHS St Francis Hospital 100 W Highway 60 Mountain View MO 65548 440607149 Hospital MO 501(C)(3) 3 ST JOHNS HS St John's Aurora Inc 500 Porter Avenue Aurora MO 65605 431936696 Lease Hosp MO 501(C)(3) 3 St Johns HS St John's Cassville Inc 94 Main Street Cassville MO 65625 431936699 Lease Hosp MO 501(C)(3) 3 St Johns HS St John's Children's Hospital Inc 1235 E Cherokee Street Springfield MO 65804 Inactive MO 501(C)(3) 3 St Johns HS St John's Clinic Inc 1965 Fremont Street Ste 2950 Springfield MO 65804 431560263 Phys Group MO 501(C)(3) 9 St Johns HS St John's Foundation for Community Hlth 1235 E Cherokee Street Springfield MO 65804 320195818 Foundation MO 501(C)(3) 11b St Johns HS St John's Health System Inc 1235 E Cherokee Street Springfield MO 65804 431856028 Holding Co MO 501(C)(3) 11b SMHS St John's Home Care of Berryville Inc 214 Carter Street Berryville AR 72616 870781247 Home Health AR 501(C)(3) 11c ST JOHN RHC St John's Medical Research Institute 1235 E Cherokee Street Springfield MO 65804 870796305 Research MO 501(C)(3) 4 ST JOHNS HS St John's Mercy Foundation 645 Maryville Centre Dr St 100 St Louis MO 63141 562410020 Foundation MO 501(C)(3) 11b ST JOHN MHC St John's Mercy Health Care 645 Maryville Centre Dr St 100 St Louis MO 63141 431718408 Hlth System MO 501(C)(3) 11b SMHS St John's Mercy Health System 645 Maryville Centre Dr St 100 St Louis MO 63141 430653493 Hospital MO 501(C)(3) 3 ST JOHN MHC St John's Mercy Hospital Foundation 901 E Fifth Street Washington MO 63090 562410022 Foundation MO 501(C)(3) 11b ST JOHN MHC St John's Mercy Support Services 615 S New Ballas Road St Louis MO 63141 431677952 Inactive MO 501(C)(3) 11c ST JOHN MHS St John's Regional Health Center 1235 E Cherokee Street Springfield MO 65804 440552485 Hospital MO 501(C)(3) 3 St Johns HS St Joseph's Mercy Clinic Inc 1 Mercy Lane Hot Springs AR 71913 261125131 Phys Clinic AR 501(C)(3) 9 ST JOS MHS St Joseph's Mercy Health Foundation 300 Werner Street Hot Springs AR 71913 710804718 Foundation AR 501(C)(3) 11b ST JOS MHC St Joseph's Mercy Health System Inc 300 Werner Street Hot Springs AR 71913 261125064 Holding Co AR 501(C)(3) 11b SMHS St Mary-Rogers Memorial Hospital Inc 2710 Rife Medical Lane Rogers AR 72758 710294390 Hospital AR 501(C)(3) 3 MHS-NWA St Mary's Hospital Foundation 2710 Rife Medical Lane Rogers AR 72858 710601687 Foundation AR 501(C)(3) 11c ST MARY RMC St Mary's Hospital of Enid Oklahoma 14528 S Outer Forty Ste 100 Chesterfield MO 63017 730614655 Inactive OK 501(C)(3) 3 MHS The Sister M Cornelia Blasko Foundation 100 W Highway 60 Mountain View MO 65548 431873914 Foundation MO 501(C)(3) 11a ST FRAN HOS Unity Ambulatory Care 645 Maryville Centre Dr St 100 St Louis MO 63141 431861745 Inactive MO 501(C)(3) 11c ST JOHN MHC HOT SPRINGS EQUIP 300 Werner Street Hot Springs AR 71913 204340915 Dissolved 9/30/09 AR NA Hot Springs MRI 100 Ridgeway Place Hot Springs AR 72901 710675196 Dissolved 8/5/09 AR NA Merc Ambu Surg CTR 7301 Rogers Avenue Fort Smith AR 72903 710827721 AMBULATORY S. CTR AR NA RES OPT & INNOV 645 Maryville Centre Drive Suite St Louis MO 63141 460468368 CENTRAL DIST. CTR MO NA SO OK DIAG CTR 1011 Fourteeth Avenue NW Ardmore OK 73401 431971232 MRI Services OK NA Fort Smith Emergency Medical Services 1701 South Greenwood Fort Smith AR 72901 710416615 Emergency Med SEV AR NA Southern Oklahoma PHO LLC 1011 Fourteeth Avenue NW Ardmore OK 73401 731462104 Dsslvd 12/31/09 OK NA Horizontal Property 7301 Rogers Avenue Fort Smith AR 72903 710554050 Office Building AR NA Consolidated Logistics Inc 2710 Rife Medical Lane Rogers AR 72758 710474406 Dissolved 8/4/09 AR C-Corp Frontenac Properties Inc 14528 S Outer Forty Suite 100 Chesterfield MO 63017 521914421 HOLDING COMP DE C-Corp Inveno Health Inc 1235 E Cherokee Street Springfield MO 65804 264509571 IT SERVICES MO C-Corp Mercy Community Services Inc 401 Woodland Hills Blvd Fort Scott KS 66701 481078101 CATERING KS C-Corp Mercy Health Center Condominium Inc 4300 W Memorial Rd Oklahoma City OK 73120 680640970 REAL ESTATE OK C-Corp Mercy Health Network of the Southern Reg 1011 14th Avenue NW Ardmore OK 73401 731580607 HEALTH CARE OK C-Corp Mercy Health Network Inc 4300 W Memorial Road Oklahoma City OK 73120 731381689 HEALTH CARE OK C-Corp Mercy Managed Care Corporation 4300 W Memorial Road Oklahoma City OK 73120 731441665 HOLDING COMP OK C-Corp Mercy Medical Services Inc 14528 S Outer Forty Suite 300 Chesterfield MO 63017 710641246 Dissolved 7/1/09 MO C-Corp MHP Inc 14528 S Outer Forty Suite 300 Chesterfield MO 63017 431697084 HOLDING COMP DE C-Corp St Edward Medical Services Inc 7301 Rogers Avenue Fort Smith AR 72903 202965518 Dissolved 5/5/10 AR C-Corp UH L Corp Inc 645 Maryville Centre Drive Suite 1 St Louis MO 63141 742499535 HOLDING COMP MO C-Corp Unity Support Services Inc 645 Maryville Centre Drive Suite 1 St Louis MO 63141 431797042 MANAGEMENT MO C-Corp false false false false false false false false false false false false false true true true false false MHM SUPPORT SERVICES O 25830907 MHP INC O 478029 MISSION CLINICAL SERVICES P 152805 RESOURCE OPTIMIZATION & INNOVATION LLC O 9822887 SISTERS OF MERCY HEALTH SYSTEM O 1460063 ST JOHN'S MERCY HEALTH SYSTEM O 261347 ST JOSEPH'S MERCY CLINIC INC P 852729 ST JOSEPH'S MERCY CLINIC INC N 76193 ST JOSEPH'S MERCY HEALTH SYSTEM INC O 8513614 ST JOSEPH'S MERCY HEALTH SYSTEM INC P 96474 ST JOSEPH'S MERCY HEALTH FOUNDATION P 529482