2011-05-11T07:15:48-05:00 2010-06-30 990 2009-07-01 231689692 Lehigh Valley Hospital LEHI 6104028000 2100 Mack Blvd Allentown PA 181035622 Joseph G Felkner 6104027501 2011-05-11 2009 2016-02-24 21:20:13Z X Ronald W Swinfard 2100 Mack Blvd Allentown PA 181035622 1611185597 0 X www.lvhn.org X 1971 PA Our mission is to heal, comfort and care for the people of our community by providing advanced and compassionate health care of superior quality and value, supported by education and research. 9 4 6729 921 1164798 1163798 17072888 15059635 828615879 888515783 -30902648 16086375 20130012 18736231 834916131 938398024 701214 291380 0 354671939 357740665 0 1433284 514368155 536726198 869741308 894758243 -34825177 43639781 1118954205 1198817322 686332000 748053844 432622205 450763478 Our mission is to heal, comfort and care for the people of our community by providing advanced and compassionate health care of superior quality and value, supported by education and research. 0 0 869540210 913735037 LVH offers a continuum of health care promotion,prevention,diagnosis,treatment and rehabilitation to the community. Extensive outpatient and educational services are provided at locations throughout the region and are a part of a healthcare network established by the Hospital to meet the medical, surgical and educational needs of the residents of the Lehigh Valley and beyond. The following reflects the general classification of operating acute care beds as of June 30, 2010:Medical/Surgical-365, Obstetrics/Gynecology-37, Medical/Surgical Intensive Care Unit-38, Intensive Coronary Care Unit-12, Neonatal Intensive Care Unit-32, Pediatric Intensive Care Unit-7, Open Heart Unit-9, Burn Unit-18, Trauma/Neuro Intensive Care Unit-14, Neuro Science ICU-14, Transitional Trauma Unit-30, Pediatric Unit-28, Psychiatry (Adult)-52, Psychiatry (Adolescent)-13, Transitional Open Heart Unit-30, and Progressive Coronary Care Unit-32. Total acute care beds - 731. In addition, LVH operates 27 bassinets in its Nursery. LVH serves as a referral center for approximately two million residents of surrounding counties in eastern Pennsylvania, with a special focus in the following key areas: Neurosciences Services: LVH provides treatment for stroke,brain tumors, intracranial hemorrhage, aneurysms, spine disorders and other neurological disorders in the following areas: Neurosurgery,Pain Management, Neurology, Neuropsychology, Neuro-Imaging, Interventional Radiology, and Neuro-Oncology. Orthopedic Services:The Division of Orthopedic Surgery treats musculoskeletal disorders of the upper and lower extremities as well as the spine. The program has been nationally recognized by US News & World Report. Orthopedic surgeons,greater than 75% fellowship-trained, provide sub-specialty care in the following: joint replacement,spinal disorders,sports medicine,hand and wrist surgery,foot and ankle surgery, orthopedic trauma and pediatric orthopedic care. Clinical outcomes are monitored for quality assurance and educational purposes.Bariatric Services: Lehigh Valley Hospital's bariatric surgery program, recognized by the American College of Surgeons Bariatric Surgery Network as a Level 1a Center of Excellence,provides comprehensive, quality-measured, medical and surgical weight management services. Led by a board certified bariatric medicine physician and bariatric surgeons, a multidisciplinary team including a nurse practitioner, dieticians, behavior health specialists and exercise physiologists provide pre-operative, operative and post-operative care. Behavioral Health Services: LVH operates the largest community-hospital based acute-care inpatient mental health program for adolescents and adults in the Lehigh Valley and surrounding regions, based upon the number of total beds and patient days, providing crisis stabilization, psychiatric,psychological,and social services. LVH also provides ambulatory care including:partial hospitalization programs for adolescents and adults;outpatient mental health clinics for chronically and severely mentally ill adults; short-term, outpatient treatment services for children, adolescents, adults, older adults and families; emergency services; and a mental health linkage with home care services. LVH Psychiatry also provides a residential rehabilitation program, teaching independent living skills to the chronically mentally ill; consultation/liaison services; and education and research. Women's Service: LVHN offers programs and services designed to provide complete care for women in the Lehigh Valley and surrounding communities. LVHN has comprehensive patient and family centered obstetric and gynecology services with a special focus on prenatal care. This includes private birthing rooms for labor, delivery, and recovery with a full range of birthing options for low or high risk mothers and babies. Comprehensive obstetric and gynecology, specialty and subspecialty care include maternal-fetal (high risk) medicine, midwifery, gynecological oncology,pelvic reconstructive surgery,and infertility/reproductive endocrinology.A Woman Care Program offering informative education series,a variety of support groups,community events focused on women,a library and special classes on prenatal care, postpartum exercise, parenting, and breastfeeding consultation along with a special program for first time parents is a sampling of what LVHN provides. Pregnancy 101, childbirth classes in English and Spanish, Maternity Tours, Sibling Tours, Car Seat safety events am inspections compliment LVHN's comprehensive women's services. Infants/Children /Young Adults: LVHN offers comprehensive inpatient and outpatient pediatric care by combining a philosophy of patient and family centered care with diagnostic, medical, and surgical interventions. Services are provided through the collaborative efforts of community, child life specialist and hospital based physicians and subspecialists. Pediatric specialty services include adolescent medicine, allergy, anesthesiology, cardiology, child abuse, critical care medicine / intensivists, dentistry, developmental / rehabilitative pediatrics, endocrinology, gastroenterology, gynecology, pediatric hospitalist, hematology / oncology, neonatology, neurology, ophthalmology, orthopedics, plastic and reconstructive surgery, psychiatry, pulmonology, radiology, rheumatology, general surgery, urology, and trauma & burn care. LVHN operates a 32 bed Level IIIb Neonatal Intensive Care Unit, 8 neonatal continuum of care beds, a 7 bed pediatric intensive care unit, a 28 bed pediatric inpatient unit, and a 13 bed adolescent psychiatric unit. Ambulatory services provided by LVHN include general pediatric outpatient clinic, a pediatric subspecialty center, and a pediatric ambulatory surgery unit. Magnet Status for Nursing Excellence: In August 2002, the American Nurses Credentialing Center (ANCC) granted Magnet Nursing Services Recognition to LVH and LVH-Muhlenberg, the first full-service hospitals in Pennsylvania to receive the recognition. Developed by the ANCC in 1994, this is the American Nurses Association's highest honor for excellence in nursing and recognizes both hospitals as national leaders in nursing education, research, patient satisfaction, quality care, job retention and the central role of nursing in the organization. The Magnet designation is a four-year accreditation for which the hospitals must reapply. The reapplication process is intense, necessitating that hospitals demonstrate a more advanced level than their previous application. In 2006, LVHN hospitals were redesignated as Magnet Hospitals, continuing to provide the advanced environment in which professional nurses can practice quality care.Reapplication has occurred in 2010 with a site visit for redesignation occurring in February 2011. Cardiology & Cardio-Thoracic Surgery: Lehigh Valley Hospital (LVH) is one of the largest cardiovascular providers in the State of Pennsylvania. LVH performed 1,345 heart and thoracic surgeries and 10,345 catheterization, electrophysiology procedures during the fiscal year ending June 30, 2010. In addition to operating one of the most experienced cardiac programs in the country, LVH's Heart and Vascular Center has been recognized as having the best heart attack survival rate in the State of PA and 2nd in the Nation. LVH's Heart and Vascular Center offers disease prevention, advanced diagnostic and therapeutic services, acute care and rehabilitation services. The following is an overview of services offered: Medical Cardiology, Diagnostic cardiology services, Invasive Cardiology & Diagnostic and Therapeutic, Electrophysiology & Diagnostic and Therapeutic, Advanced Non-invasive Cardiac Imaging (CT, MR, Calcium Scoring), Open Heart Surgery, Advanced Heart Failure Treatment, Cardiac Rehabilitation, MI Alert Program, Women's Heart Program, Lipids Clinic, Coumadin Clinic, Cardio Vascular Research Institute, Cardiology Fellowship Program.Trauma Services: In 1981, LVH became the first hospital in Pennsylvania to be designated as a Level I Trauma Center and is currently the largest trauma program in eastern Pennsylvania. LVH is also one of four programs in the state with added qualifications in pediatric trauma. The program provides comprehensive trauma care and services,including education and research and is a major regional resource serving a ten county area and a patient base of over 2.5 million people. LVH coordinates pre-hospital emergency medical services and provides 24 hour a day air ambulance service operating four helicopters in eastern Pennsylvania and western New Jersey. The Lehigh Valley Hospital Trauma program provides a continuum of care for the trauma patient with providing 24/7/365 in house coverage. A trauma rehabilitation team completes the continuum of trauma care. LVH also serves as a regional Burn Center,verified by the American Burn Association, for both adult and pediatric burn patients. Continued from 4(a)-Estimated Value of Free Care, Community Service, Charitable Contributions, and professional and Community Education - Medicare Shortfall $49,167,954, Medical Assistance Shortfall $23,566,989, Uncompensated Charity Care $10,536,341, Bad Debt $14,442,230, Clinics Subsidy $10,824,734, TRICARE (CHAMPUS) Shortfall $431,969, Blue Cross Special Care & CHIP Shortfall $404,635, Direct Support of Government Entities: Real Estate Taxes Paid on Owned and Leased Property $1,341,934, Salisbury Township School District Agreement (includes 50% add-on value for voluntary agreements) $159,230, Stipend to Salisbury Township $34,213, Financial Support to City of Allentown $160,000, Stipend to City of Allentown $45,000, Free Pap Tests, Mammograms & Ultrasounds - City of Allentown $90,890, Laboratory Tests & Consultative Services - City of Allentown $12,858, Physical Examinations - Firefighters & HazMat Personnel $72,085, Contribution to Western Salisbury Volunteer Fire Company $15,000, School Health $384,676, Communities in Schools $58,210, Value of Volunteer Assistance $1,780,053, Neighborhood Health Centers of the Lehigh Valley $483,707, Transitional Living Centers $319,807, Community Health & Health Studies Department $846,679, Division of Education - Office of Student Affairs in-kind, AIDS Activities Office $424,599,Healthy You Programs $132,935, Lehigh Valley Hospital Cancer Center (includes PatientSupport & Education, Community Education & Screening Programs) $342,102, George E. Moerkirk Emergency Medicine Institute $413,840, Helwig Diabetes Center Education & Outreach Programs $114,030, Pastoral Care $890,013, Patient Representative - Press, Ganey Patient Survey $201,679, Foreign Language & Sign Language Interpreting Service $678,880, Public Affairs Activities: Community Health Education Programs $449,338, Patient Education Publications $18,520, Materials to Promote Health-Related Activities $258,339, Physician Referral & Health Information Line $353,512, Speakers Bureau in-kind, Voluntarism in-kind, Contributions $191,065, Free Oral Trauma Surgery Care $333,343, Ambulance Transport Costs $136,851, Transportation For Discharged Patients $35,441, Pharmaceuticals For Discharged Patients $325,885, Pharmacy Financial Coordinator $42,985, Infection Control Community Service (includes free flu vaccine) $220,802, Nurse Practitioner - Child Advocacy Center of Lehigh Valley $35,343, Chairman, Department of Pediatrics Community Service in-kind, Dental Screenings & Free Procedures in-kind, Organization Development Community Education in-kind, Weight Management Center Support Groups & Outreach in-kind, Pediatrics Community Service in-kind, Library Services to the Community in-kind, Stroke Center Community Education Programs in-kind, Patient Care Services - Community Service (includes classes, support groups, and Professional Excellence Council activities) in-kind, Trauma Division - Injury Prevention Programs in-kind, Tobacco Treatment Program in-kind, Emergency Medicine Outreach in-kind, Subtotal $120,778,696. Medical Education $11,038,756, Patient Education $243,923, Nursing Education $6,738,209, Research Activities net of Grant Funding $2,428,759, Subtotal $20,449,647. Total $141,228,343. 869540210 1 1 0 1 0 0 0 0 1 1 0 1 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 1 0 0 1 608 0 1 6729 1 1 1 0 0 0 0 1 1 0 0 0 9 4 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 0 PA X X X The Organization 4848840130 2100 Mack Blvd Allentown PA 181035622 Richard Fleming 1.00 X 0 0 0 William F Hecht 1.00 X 0 0 0 Linda Lapos MD 1.00 X 45000 0 0 Matthew M McCambridge 1.00 X 80000 0 0 Stephen K Klasko MD 1.00 X 0 0 0 Elliot J Sussman MD 60.00 X X 967978 0 21445 Ronald W Swinfard MD 60.00 X X 570964 0 21445 Kathryn P Taylor 1.00 X 0 0 0 Daniel H Weiss 1.00 X 0 0 0 Martin K Till 1.00 X 0 0 0 Stuart S Paxton 60.00 X 412307 0 21445 Terry Capuano 60.00 X 452089 0 21445 Vaughn Gower 60.00 X 432898 0 21445 Harry Lukens 60.00 X 446169 0 21445 Mary Kay Grim 60.00 X 449165 0 21445 Charles Lewis 60.00 X 297780 0 21445 Brian Nester MD 60.00 X 0 428810 21445 Joseph G Felkner 60.00 X 322715 0 21445 Michael Rossi MD 60.00 X 0 621606 21445 Thomas Whalen MD 60.00 X 0 622447 21445 James Geiger 60.00 X 226802 0 20351 Brian Hardner 60.00 X 197977 0 18618 Mary Sebastian 60.00 X 204274 0 18997 John Niemkiewicz 60.00 X 195980 0 18498 Keith Weinhold 60.00 X 180572 0 17572 5482670 1672863 351376 147 0 1 0 Pulmonary Associates PC 1210 S Cedar Crest Blvd Suite 23 Allentown PA 18103 Physician Services 3298072 VSAS Orthopaedics 1250 S Cedar Crest Blvd Suite 11 Allentown PA 18103 Physician Services 2219205 Lehigh Area Medical Associates 1255 S Cedar Crest Blvd Suite 22 Allentown PA 18103 Physician Services 1976843 Tallman Hudders & Sorrentino 1611 Pond Rd Suite 300 Allentown PA 18104 Attorney Services 937143 IMR Limited 20 Unico Drive Hazelton PA 18202 Information Services 883007 38 5153577 9906058 105110 15059635 Inpatient Revenue 624100 610282992 610282992 Outpatient Revenue 624100 275996913 275996913 Physician Fee Revenue 624100 2235878 2235878 888515783 7639939 7639939 5324100 4525485 798615 798615 798615 676253977 667807541 8446436 8446436 8446436 1189830 454547 735283 735283 Health Network Labs 621500 13770759 12605961 1164798 Research & Misc. Incom 900099 5073294 5073294 0 Lehigh Valley PHO 900003 -1641720 -1641720 17202333 938398024 913735037 1164798 8438554 291380 291380 5899834 5899834 268880501 259134783 8805217 940501 27729187 26752311 876719 100157 33279745 32023530 1134349 121866 21951398 21161133 716751 73514 1361495 1361495 260782 260782 99216188 93640351 5528262 47575 3693318 1183518 2509800 2464722 2323577 119708 21437 9212459 9137476 74983 23241662 22936784 181642 123236 1110290 1052151 50220 7919 1600618 1501280 86965 12373 17063496 17063496 65833023 65808363 20565 4095 3715952 3715952 Medical Supplies 139960238 139958742 1496 Income Tax Expense 249717 249717 Purchased Services 91880828 90561472 1280102 39254 BAD DEBTS EXPENSE 61786791 61786791 Other Supplies 3758016 3734572 28318 -4874 10316603 8250437 2119935 -53769 894758243 869540210 23784749 1433284 10851 10850 7102579 21065098 11869010 12003111 132555614 126458008 193586 894266 6981122 7947907 17433425 16480630 934730024 489381757 472224104 445348267 396271149 482181563 65146864 76098844 9165901 10328778 1118954205 1198817322 79390845 86912129 2412215 2181396 368061274 359729000 33795693 34091927 202671973 265139392 686332000 748053844 X 332474797 333542482 63996198 77410335 36151210 39810661 432622205 450763478 1118954205 1198817322 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 1 100 0 0 1 27577 0 1 28389 56066 0 Part II-B, Line 1i: Explanation of Other Lobbying Activities: Indirect State lobbying activites - Indirect communication includes communication explaining a principal's position and requesting others to contact elected officials by way of grassroots lobbying. 78716975 3372844 9223571 285893 1625502 89401995 0.00000 0.38000 0.62000 1 0 4466258 4466258 603252370 281780871 321471499 10405513 4867165 5538348 227565738 160022403 67543335 89040145 42711318 46328827 445348267 Investment-Lehigh Valley Physician Hospital Org.-42.7% 6978202 C Investment-Health Network Laboratories-83.24% 64867108 C Quakertown Health Venture - 50% 3506534 C Investment - Careworks Allentown 159000 C Investment - Careworks Schnecksville 138000 C Investment - Fairgrounds Medical Center 450000 C 76098844 Cost Settlement Reserves with Third Parties 11307253 Deferred Compensation Plan 10092301 Pension Liability 201262131 Workers Compensation 1906975 Professional Insurance Liability Reserves 23339762 Asset Retirement Obligation 4128090 Unrealized Loss on Interest Rate Swap 12790781 Other 312099 265139392 Part V, Line 4: Description of Intended Use of Endowment Funds: The endowment funds are used for continuing education, scholarships, research, clinical equipment, and nursing awards. In 2008, the Organization adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 establishes that the financial statement effects of a tax position taken or expected to be taken are to be recognized in the financial statements when it is more likely than not, based on technical merits, that the position will be sustained upon IRS examination. FIN 48 became effective for fiscal year 2008 for the Organization. The Organization has analyzed tax positions taken on federal income tax returns for all open tax years for the taxable entities and has determined that as of June 30, 2010, there are no uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. The Organization has analyzed specific criteria regarding the exempt 501(c) 3 status for the tax exempt entities and has determined that as of June 30, 2010 the Organization is compliant with the qualifications for exemption from Federal income tax. Nite Lites 1189830 0 1189830 0 0 0 0 0 454547 1189830 1189830 454547 454547 735283 1 1 X 1 X 400.000000000000 1 X 1 1 0 1 1 10536341 10536341 0.01180 94006115 70439126 23566989 0.02630 104542456 70439126 34103330 0.03810 6387641 6387641 0.00710 16384756 5346000 11038756 0.01230 14120173 1754954 12365219 0.01380 5207170 2778411 2428759 0.00270 191065 191065 0.00020 42290805 9879365 32411440 0.03610 146833261 80318491 66514770 0.07420 1 1 0.00000 1 1 0.00000 1 1 0.00000 1 1 0.00000 4 4 1 14442230 9242000 225003374 216107442 8895932 X 1 1 LVHN Reciprocal Risk Retention Group Malpractice Insurance 0.16670 0.00000 0.00000 Health Network Laboratories LLC Laboratory Services 0.85000 0.00000 0.00000 Health Network Laboratories LP Laboratory Services 0.81670 0.00000 0.00000 Lehigh Valley Physician Hospital Organization Inc Health Care Services 0.45000 0.00000 0.00000 Lehigh Valley Hospital

1200 S Cedar Crest Blvd Allentown PA 18103

X X X X X Lehigh Valley Hospital

17th Chew Streets Allentown PA 18103

X X X X Lehigh Valley Hospital

2545 Schoenersville Road Bethlehem PA 18017

Behavioral Health, Radiation Therapy Lehigh Valley Hospital

1040 Chestnut St Emmaus PA 18049

Family Medical Center Lehigh Valley Hospital

1243 S Cedar Crest Blvd Allentown PA 18103

Cardiac Rehab, Outpatient Therapy, Diabetes Lehigh Valley Hospital

1250 S Cedar Crest Blvd Allentown PA 18103

Cardiac Diagnostic Lehigh Valley Hospital

1255 S Cedar Crest Blvd Allentown PA 18103

Behavioral Health Lehigh Valley Hospital

2166 S 12th Street Allentown PA 18103

Homecare/Hospice Lehigh Valley Hospital

425 D Penn Circle Allentown PA 18103

Behavioral Health Lehigh Valley Hospital

3800 Sierra Circle Allentown PA 18103

Physical Therapy, Pediatric Rehab Lehigh Valley Hospital

425 B Willow Circle Allentown PA 18103

Behavioral Health Lehigh Valley Hospital

2545 Schoenersville Road Bethlehem PA 18017

Oncology, Radiation Therapy Lehigh Valley Hospital

Trexler Mall Trexlertown PA 18087

Imaging, Radiology, Outpatient Therapy Lehigh Valley Hospital

99 West End Blvd Quakertown PA 18951

Physical Therapy Lehigh Valley Hospital

1259 S Cedar Crest Blvd Allentown PA 18103

Behavioral Health Part I, Line 3c: Part I, Line 6a: Lehigh Valley Health Network - EIN 22-2458317 Part I, Line 7: The costing methodology is cost to charge ratio for programs with gross charges and direct costs for programs without gross charges. Part I, Line 7g: CLINICS SUBSIDY The clinics subsidy of $10,824,734 is the difference between clinic payments and clinic costs. The clinics subsidy includes the operations of the Medical and Surgical Clinics, Outpatient Pediatrics, the Dental Clinic, the Center for Women's Medicine, the Family Health Center, Geriatrics, Maternal Fetal Medicine, and the Mental Health Clinic.TRANSITIONAL LIVING CENTERSLehigh Valley Health Network administers two Residential Aftercare Programs as a contracted provider for the Lehigh County Department of Human Services. These programs include the Transitional Living Center-Full Care and the Transitional Living Center-Moderate Care. Although the programs receive revenue from clients and reimbursements from Lehigh County, these funds do not fully reimburse program operating expenditures. In FY'10, program operating expenditures exceeded program revenues and reimbursements by $319,807. The Transitional Living Centers serve residents of Lehigh County age 18 and over who have been treated for mental illness and would benefit from a structured residential program. The Full Care site is supervised 24 hours per day and teaches the activities of daily living as designated by the Pa. Department of Welfare to those residents who demonstrate the need for ongoing intensified supervision due to their mental illness. The Moderate Care site is supervised 10 hours per day and is designed to teach activities of daily living to those individuals who demonstrate the need for community reentry support in a less-intensified structure.AIDS ACTIVITIES OFFICEEstablished in 1989, Lehigh Valley Hospital's AIDS Activities Office (AAO) provides clinical and social services to children, adolescents and adults infected and affected by HIV/AIDS and HCV (hepatitis C). In FY'10, the AIDS Activities Office's active patients received one or more of the following services:1. HIV testing and counseling (A free service open to the public as a state-designated Department of Health lab site).2. Prevention counseling.3. Initial and ongoing medical care (including laboratory evaluation, coordination and referral to diagnostic and specialty service, and pharmaceutical treatment regimens) provided by a physician board-certified in infectious diseases and specializing in HIV care.4. Coordination and monitoring of inpatient and outpatient clinical therapies, and education provided by registered nurses certified in AIDS care.5. Nutritional assessments and interventions.6. Adherence counseling.7. Availability of local clinical trials and referral to regional trials.8. Case management to insure coverage of basic and social service needs, including housing, employment, outpatient substance abuse treatment, mental health counseling, etc., and providing linkages to care and coordination of specialty treatments.9. HIV outreach, prevention education, and testing in community settings (was previously in-house only).10. Hepatitis C treatment provided by a physician board-certified in internal medicine and specializing in HCV care.11. Hepatitis C education by nurses specially educated in the disease as well as prevention and adherence counseling.12. Support groups for HIV and HCV.13. Mental health counseling by a licensed clinical social worker specializing in people living with HIV and HCV.14. New in FY'10 is the AAO Food Bank, supported by donations and a $10,000 Trexler Trust Grant. 1,106 bags of food were provided.Funded originally by the Dorothy Rider Pool Health Care Trust and Lehigh Valley Hospital (LVH), the AIDS Activities Office is currently primarily supported by LVH, Early Intervention Funding (Title III) from the Ryan White Care Act (Human Resources and Services Administration) and AIDSNET (Ryan White Title II funding) and the PA Department of Health. LVH's contribution to the operations of the AIDS Activities Office in FY'10 was $424,599, net of payments.FREE ORAL TRAUMA SURGERY CARELehigh Valley Hospital provided free oral trauma surgery care to 134 patients in FY'10. The total net cost to provide this service was $333,343.AMBULANCE TRANSPORT COSTSLehigh Valley Hospital incurred total ambulance costs of $136,851 to transport patients to other non-LVHN facilities.PHARMACEUTICALS FOR DISCHARGED PATIENTSPharmaceuticals appropriate to the course of treatment are often provided at no charge to indigent patients upon discharge. The cost of these medications in FY'10 was $325,885. Part I, Line 7f: The costing methodology for bad debt expense is the Medicare cost to charge ratio. The ratio of uninsured charges written off as charity was applied to total charges written off as bad debt to estimate the portion of bad debt that is attributed to patients under the hospital charity policy. Part III, Line 4: BAD DEBTS-In instances where the Organization believes a patient has the ability to pay for services and, after appropriate collection effort, payment is not made, the amount of services not paid is written-off, at charges, as bad debts. Amounts recorded as bad debts expense do not include charity. The amount of bad debts expense for the years ended June 30, 2010 and 2009, at charges, was $61,794,000 and $50,476,000 respectively, and is reported as Bad debts expense on the Combined Statements of Operations. Part III, Line 8: The source of the Medicare allowable costs relating to revenue received from Medicare is the FY '10 Medicare Cost Report. Part III, Line 9b: Financial Counseling staff will determine whether patients meet eligibility criteria for financial assistance. Accounts that do not meet the eligiblilty requirements will be referred to the internal collection unit and subsequently transferred to bad debt status if the accounts remain unpaid.When the hospital determines that a Medicare patient is either financially or medically indigent and that he is unable to pay his patient liability, the hospital waives its standard collection procedures, deems the account to be uncollectible, and immediately transfer the unpaid balance to bad debt status. Part VI, Line 2: Community Needs Assessments are conducted on behalf of the Lehigh Valley Health Network, which is the governing entity for Lehigh Valley Hospital and Lehigh Valley Hospital - Muhlenberg.In Fall 2008, the Allentown Community Health Partnership (Partnership) was established to inform the development and implementation of the Allentown Community Health Survey. Organizations represented on the Partnership include the Allentown Economic Development Corporation, Allentown Health Bureau, Allentown School District, Allentown Weed and Seed, Community Action Coalition of the Lehigh Valley, Lehigh Valley Health Network, Lehigh Valley Research Consortium, Old Allentown Preservation Association, and the United Way of the Lehigh Valley. The Partnership felt it important that, in addition to examining existing behavioral risk factor and other community health indicator data, it was important to understand the health concerns of the residents of the community. Thus, the intent of the data collection effort was on learning the perceptions of the community in terms of neighborhood and access to care issues.Questions posed to respondents focused on the following:Allentown neighborhoods: how residents feel about them, how safe they feel, recreational opportunities in their community. The availability of services in the community: mental health services, primary care, dental care. Problems in their neighborhoods related to safety, gangs, violence, access to drugs and alcohol.The Partnership met several times to develop the survey instrument and determine mode of administration. The instrument was designed to examine residents' perceptions of factors that may be affecting the health and well-being of adults living in Allentown. A draft of the instrument was pretested with parents of children attending Allentown's Central Elementary School. Modifications were made to the instrument based on parents' feedback.The Partnership wanted to assure that population groups less likely to respond to a mailed survey would have an opportunity to share their perceptions and concerns. Therefore, in addition to a mailed survey, individual interviews and focus groups were conducted. A contract was established between LVHN and the Lehigh Valley Research Consortium (LVRC) for implementation of the mailed survey, focus groups, and personal interviews. Faculty and students from Lehigh University and Muhlenberg College assisted in the data collection through the LVRC.Mailed survey: A mailed survey was sent to 5000 Allentown households following the implementation process recommended by Don A. Dillman.(ref) The sample of 5000 households was drawn from a sampling frame of City of Allentown addresses that were collected by the Marketing System Group (MSG) of Fort Washington Pennsylvania. The surveys were coded with unique numbers linked to the mailing addresses to enable geocoding and mapping of responses. Focus groups: Five focus groups were held in late May and early June 2009 in East Allentown and South Allentown. These areas were selected because they have not been as involved in community assessments as other Allentown neighborhoods. Forty-nine individuals participated in the focus groups.Focus groups were conducted at sites intended to be convenient to the participants. Four focus groups were conducted at elementary schools (two at Roosevelt and two at Mosser). One group at each location was in Spanish and the other in English. The fifth group was conducted at South Mountain Middle School. Permission was obtained from the school principals to recruit parents and conduct focus groups at the schools. Recruitment methods included attending events at each of the schools and distribution of flyers at one school. A moderator assisted by a note taker facilitated each focus group. The groups were audio-recorded with the consent of the participants. Participants were told the purpose of the focus group and that they did not have to answer questions they did not want to answer. They were also told that the information they shared would remain confidential and would not be linked to their names. Individuals received $25 in cash for their participation. Before beginning the focus group, anonymous demographic information sheets were distributed for participants to complete. These information sheets included questions regarding ethnicity, household income, gender, education, and health insurance. Participants were instructed not to put their names on the information sheets.Personal interviews: Personal interviews were conducted with members of the African American, Latino, Middle Eastern, and Vietnamese communities. The intent of these interviews was to obtain more in-depth responses to questions on the mailed survey from people who might not be well-represented in mailed responses. Participants were sought using a variety of means including extensive contacts with community and religious leaders, visiting churches, social clubs, and community centers, and personal contacts. The method that was most effective for recruiting participants and completing interviews was central location interviewing. Interviewers positioned themselves in public places such as parks, busy street corners, and in front of ethnic groceries and restaurants (with permission from the owners) and approached individuals asking them if they would like to participate in a survey. Part VI, Line 3: Consistent with the mission and values of Lehigh Valley Health Network, it is the policy to provide medical care to all individuals without regard to their ability to pay for services. The Charity Care Policy which incorporates the LHVN Reduced Cost of Care program applies to uninsured and under-insured individuals who participate in the process to evaluate their ability to pay for LVHN services.Patients are identified by LVHN registration, Benefits and Verification, and Financial Counselors as being in financial need. The Financial Counselors help patients complete the application for Reduced Cost of Care. LVHN follows the Federal Poverty Guidelines to evaluate eligibility. Patients whose family income falls bellow 200% of the Federal Poverty guideline will have their entire balance forgiven for their qualifying services at a participating LVHN provider. Patients with a family income below 400% of the Federal Poverty guidelines will have a portion of their balance forgiven for qualifying services at a participating LVHN provider. Patients are evaluated for no or reduced premium insurance plans. The LVHN Financial Counselors will offer information to patients who are interested in seeing if they qualify for these programs offered by commercial insurance companies.Patients often express financial concern or need by contacting the LVHN Customer Service departments. The Customer Service representatives explain the programs available; Reduced Cost of Care, Medical Assistance, and a Reduced Patient responsibility for Self Pay patients. Patients will be referred to the Financial Counselors who are employed through PATHS (Physician and Tactical Health Systems) that work with patients to apply for Pennsylvania Medical Assistance. The PATHS Financial Counselors are located onsite. The PATHS representatives visit patients in their inpatient rooms, in the Cancer Center, and in the Emergency Department. In addition, LVHN advertises Financial Assistance at a minimum in the local newspaper, on our public website and on the statements sent to our patients. Part VI, Line 4: Lehigh Valley Hospital, Inc. (LVH) is a Pennsylvania not-for-profit membership corporation exempt from federal income taxes as a corporation described in Section 501(c)(3) of the Internal Revenue Code. LVH was formed on January 1, 1988 as a result of the merger of The Allentown Hospital and Lehigh Valley Hospital Center. As of June 30, 2010, LVH operates hospital facilities at three primary locations: 17th and Chew Streets in Allentown, Lehigh County, Pennsylvania, Cedar Crest Boulevard and Interstate 78 in Salisbury Township, Lehigh County, Pennsylvania, LVH also operates 65 psychiatry beds on the LVH-Muhlenberg campus.The primary service area of LVH consists of Lehigh, Northampton and Carbon counties. Based on information available from the U.S. Census Bureau for the years 2005-2009 American Community Survey and the 2000 decennial census, the population of the primary service area was approximately 640,000 people in 2000 and was estimated to be 693,543 at the end of calendar year 2009.During fiscal year 2010, 75% of the discharges from LVH were residents of the primary service area. The secondary service area consists of Berks, Luzerne, Monroe, and Schuylkill counties as well as northern portions of Bucks and Montgomery counties.The 2000 population of the secondary service area was approximately 1,376,000. During fiscal year 2010, 21% of the discharges from LVH were residents of the secondary service area. Based on U.S. Census Bureau data, the current population of the combined primary and secondary LVH service areas is projected by ScanUS Demographics, to increase approximately 9.3% (from 2000) by the year 2015. During fiscal year 2010, 4% of the discharges from LVH were residents outside the primary and secondary service areas. Part VI, Line 5: Community Building Activities are conducted on behalf of Lehigh Valley Health Network, which is the governing entity for Lehigh Valley Hospital and Lehigh Valley Hospital - Muhlenberg. Our Community PartnersWe build strong, healthy communities by collaborating with schools and organizationsOur community partners include: Central School-Line 7More than 800 students at Central School in the Allentown School District, Allentown, Pa., and their families benefit from care provided by our pediatric health center. A health care team provides care that includes basic health care, asthma management, immunizations, counseling and community outreach. We know poor health robs children of their ability to be good students. For 15 years, this project has worked to promote academic success at this inner city elementary school. Partnership for a Tobacco-Free Northeast-Line 9Partnership for a Tobacco-Free Northeast Pa. is dedicated to improving the quality of life in our communities by reducing tobacco use.Communities in Schools of the Lehigh Valley-Line 3We are a longtime partner of Communities in Schools of the Lehigh Valley, a program for adolescents at risk for dropping out of school. About 200 Allentown-area high school students attend the program at Lehigh Valley Hospital-17th Street, Allentown, Pa. In addition to classroom instruction, they get mentoring, tutoring and training in job readiness and life skills,in short, a great start for a healthy and successful future. Da Vinci Science Center-Line 9We recognize science isn't confined to test tubes. So our clinicians partner with the Da Vinci Discovery Center of Science and Technology in Allentown, Pa., to develop interactive displays that introduce young minds to health care. The center has approximately 100,000 visitors each year. The Pennsylvania Regional Community Policing InstituteWe partner with The Pennsylvania Regional Community Policing Institute to help keep our community safe. We recognize medical health is directly related to the well-being of a community, and it takes cooperation from all levels of government to improve quality of life in our community. For instance, the institute provides homeland security, crime prevention, and emergency preparedness training to community members, police offers and other emergency responders. Sixth Street Shelter-Line 7The Sixth Street Shelter in Allentown provides free, basic care to uninsured adults. We offer physicals for employment, driver's licenses and school applications. If you need more specialized care, you will be referred to The Caring Place at 933 Hamilton St., Allentown, or to the Lehigh Valley Physician's Practice at Lehigh Valley Hospital-17th street.The Caring Place Family Health Program at 933 Hamilton St., Allentown, Pa., (fourth floor) offers free, basic medical care to you and your family, including immunizations and screenings for sexually transmitted diseases and HIV. Gynecological exams and cervical cancer screenings are available to women. As a patient, you'll learn how to care for your own health, and receive support through counseling and support groups. Part VI, Line 6: Lehigh Valley Hospital qualifies as an Institution of Purely Public Charity in Pennsylvania. This regulation is referred to as Act 55. To be considered a purely public charity, nonprofits must: (1) advance a charitable purpose; (2) donate or render gratuitously a substantial portion of its services; (3) benefit a substantial and indefinite class of persons who are legitimate subjects of charity; (4) relieve the government of some burden; and (5) operate entirely free from private profit motive.LVH is required to reapply for this charitable status every five years and currently qualifies through October 31, 2015. 1 Nursing Scholarships 133 283526 0 Book N/A Jirolano Tuition Aide Scholarship 1 600 0 Book N/A Anderson Grant Scholarships 2 7254 0 Book N/A Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Scholarships are awarded to Senior Nursing Students in a Bachelor of Nursing program, and 2nd year student in an Associate Degree Program based on the following criteria: Two letters of recommendation from Clinical Professors, an official copy of their current transcript with a required GPA of 3.0 or better, and a one page essay describing why they deserve the scholarship. If above information is considered favorable, an interview is scheduled with a Selection Committee member. If considered favorable through the interview. A scholarship is awarded. Student comes in the sign contract, it is notarized and payments are issued providing student continues receiving GPA of 3.0 or better until graduation. Upon graduation the student owes 2080 hours of employment as a Registered Nurse, after successful completion of an internship. X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 Elliot J Sussman MD 858143 0 0 0 109835 0 0 0 21445 0 989423 0 0 0 Ronald W Swinfard MD 466422 0 0 0 104542 0 0 0 21445 0 592409 0 0 0 Stuart S Paxton 404924 0 0 0 7383 0 0 0 21445 0 433752 0 0 0 Terry Capuano 300497 0 125000 0 26592 0 0 0 21445 0 473534 0 0 0 Vaughn Gower 278533 0 125000 0 29365 0 0 0 21445 0 454343 0 0 0 Harry Lukens 275220 0 125000 0 45949 0 0 0 21445 0 467614 0 0 0 Mary Kay Grim 299427 0 125000 0 24738 0 0 0 21445 0 470610 0 0 0 Charles Lewis 275385 0 0 0 22395 0 0 0 21445 0 319225 0 0 0 Brian Nester MD 0 396438 0 642 0 31730 0 0 0 21445 0 450255 0 0 Joseph G Felkner 160769 0 150000 0 11946 0 0 0 21445 0 344160 0 0 0 Michael Rossi MD 0 530025 0 52000 0 39581 0 0 0 21445 0 643051 0 0 Thomas Whalen MD 0 583027 0 0 0 39420 0 0 0 21445 0 643892 0 0 James Geiger 215629 0 0 0 11173 0 0 0 20351 0 247153 0 0 0 Brian Hardner 197356 0 0 0 621 0 0 0 18618 0 216595 0 0 0 Mary Sebastian 198977 0 0 0 5297 0 0 0 18997 0 223271 0 0 0 John Niemkiewicz 196101 0 0 0 -121 0 0 0 18498 0 214478 0 0 0 Keith Weinhold 182611 0 0 0 -2039 0 0 0 17572 0 198144 0 0 0 Part I, Line 1a Travel expenses for companion is paid by Lehigh Valley Hospital for one professional meeting per year for the President/CEO. Part I, Line 4a Part I, Line 4b: Elliot J. Sussman, MD 104,406 Ronald W. Swinfard, MD 98,779 Vaughn Gower 26,371 Harry Lukens 37,434 Mary Kay Grim 24,055 Charles Lewis 17,230 Terry Capuano 25,071 Brian Nester, MD 24,274 James Geiger 12,954 Joseph G. Felkner 9,356 These amounts are accruals to a nonqualified supplemental executive retirement plan. Lehigh County General Purpose Authority 911886539 5248053E6 2005-07-07 61000000 refund 4/1/94, 7/25/95 & 11/21/95 issues 0 0 Lehigh County General Purpose Authority 911886539 5248053F3 2005-09-15 81000000 construct, renovate & equip facilities 0 0 Lehigh County General Purpose Authority 911886539 52480GAY0 2008-06-04 53725184 construct, renovate & equip facilities 0 0 Lehigh County General Purpose Authority 911886539 52480GBA1 2008-06-05 52574500 refund 4/2/98 issues 0 0 Lehigh County General Purpose Authority 911886539 52480GAA2 2008-06-06 59745000 refund 8/14/97 & 4/21/99 issues 0 0 61000000 58939661 2060339 2005 1 0 1 1 81000000 8199759 3250220 71505488 2007 0 0 1 1 53725184 2027846 51857747 2010 0 0 1 1 52574500 51115735 1458765 2008 1 0 1 1 59745000 59010280 734720 2008 1 0 1 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 1 1 Merrill Lynch 20.000000000000 0 0 0 1 0 0 0 1 MBIA 3.300000000000 1 0 1 0 0 0 0 0 0 1 0 1 1 Merrill Lynch & Goldman Sachs 20.000000000000 0 0 0 1 0 1 0 0 0 0 1 0 0 James H Miller-Trustee Refer to Schedule O - CEO of PPL Corp., Trustee of LVHN 5042646 See Sch. O - PPL provides electric service to LVHN facilities at fair market value rates. 0 Kathryn P Taylor-Trustee Refer to Schedule O - Board Member of Capital Blue Cross - Trustee of LVHN 87084495 See Sch. O - Capital BlueCross is a third party insurer doing business with LVHN. 0 X 6 21650 Fair market Value X 3 6339 Cost of Beverages 0 1 0 Form 990, Part VI, Section B, line 11 The process to review the 990's includes: Draft 1 of the returns is reviewed in detail with a focus on accuracy, completeness, and perspective by the LVHN Controller and the LVHN Corporate Legal Counsel. Draft 2 of the returns is reviewed by the Sr. Vice-President-Finance and CFO. All Compensation disclosures are reviewed by the Sr. Vice President - Human Resources. In addition, selected information is also reviewed by LVHN external consultants: Compensation information reviewed by the LVHN Compensation consultant and compensation and charitable purpose information reviewed by an additional LVHN consultant. Draft 3 of the returns is reviewed together with the President & CEO, the Sr. Vice-President Finance and CFO, the Sr. V.P Human Resources, the Controller and the Director-Tax. Final Returns are reviewed with LVHN Executive Committee of the Board of Trustees prior to their filing. Form 990, Part VI, Section B, line 12c Trustees, officers, management and members of the medical staff are required to complete the Conflict of Interest and Commitment questionnaire on an annual basis. Effective August 2008, the questionnaire is completed electronically and stored in a database for ease of reporting and monitoring purposes. Reported conflicts of interests are reported to the Lehigh Valley Health Network Board on an annual basis. The information is also shared with the Pennsylvania Department of Health during their survey process. Those affected within the organization and their immediate supervisors are responsible for ongoing compliance with the Policy both annually and in the interim between declaration periods where possible new conflict situations may arise. Form 990, Part VI, Section B, line 15 The Executive Compensation Committee of the Board of Trustees functions as follows: -Members are independent of management -Members are appointed annually by Board of Trustees -Members to have relevant and specified qualifications -Review performance of CEO and other specified senior management and selected physicians -Review succession plans and career development of senior management -Review compensation policy and this Committee Charter -Meet quarterly The Executive Compensation Committee retains an independent compensation consulting firm, specializing in the healthcare industry, to provide comprehensive comparability analyses for all key executives, physicians, and key employees on an annual basis. This consulting firm does no other work for LVHN. Form 990, Part VI, Section C, line 18 Anothers Website - Guidestar. Upon request - hard copies with senior management and marketing. Form 990, Part VI, Section C, line 19 The Organization makes its financial statements available to the public through its Annual Report to the community. The Annual Report is distributed to all attendees at the Organizations annual public meeting. In addition, it is distributed via mail to members of the community. The Organizations governing documents and conflict of interest policy are not made available to the public. Form 990, Part XI, Line 2c Committee - oversight of audit The Audit Committee of the Board of Trustees assumes responsibility for oversight of the audit and selection of an independent auditor. Form 990, Part VI, Line 16b Written Policy - Joint Venture arrangements Although the organization does not have a written policy with respect to evaluation of participation in joint venture arrangements, no joint venture is entered into without having had the transactional documents reviewed and evaluated by outside counsel and, if necessary, consultants and accountants to assure that the arrangement does not, in any manner, compromise the organization's exempt status and mission. Form 990, Part VII, Line 1a Compensation of Officers, Directors, Trustees, Key Employees, etc. Hours worked by these individuals reflect the combined hours spent as a Board Officer and an Employee of the organization. All compensation, benefits, etc. reported are for work as a member of senior management of the organization. The remainder of the officers, trustees, listed above are volunteers and receive no compensation. Lehigh Valley Health Network 1200 S Cedar Crest Blvd Allentown PA 18103 222458317 Parent Company PA 501(c)(3) 509(a)(3) III-FI N/A Lehigh Valley Hospital - Muhlenberg 1200 S Cedar Crest Blvd Allentown PA 18103 232367707 Health Care Organization PA 501(c)(3) 170(b)(1) (A)(iii) Lehigh Valley Health Network Lehigh Valley Physician Group 1200 S Cedar Crest Blvd Allentown PA 18103 232700908 Physician Practice Organization PA 501(c)(3) Line 9 Lehigh Valley Health Network Muhlenberg Realty Corporation 1200 S Cedar Crest Blvd Allentown PA 18103 232245513 Real Estate Rentals PA 501(c)(3) 509(a)(3) III-FI Lehigh Valley Health Network Lehigh Valley Health Network Realty Holding Co 1200 S Cedar Crest Blvd Allentown PA 18103 232586770 Real Estate Holding Co. PA 501(c)(2) 509(a)(3) III-FI Lehigh Valley Health Network Community Ambulatory Care Center 400 North 17th St Suite 300 Allentown PA 18104 232530415 Surgical Center PA N/A LVHN Reciprocal Risk Retention Group 151 Meeting Street Ste 301 Charleston SC 29401 200037118 Insurance PA Lehigh Valley Health Network Related 320352 0 0 Health Network Laboratories LLC 2024 Lehigh Street Allentown PA 18103 232932802 Laboratory Services PA Lehigh Valley Hospital Related 183326 828750 0 0 Health Network Laboratories LP 2024 Lehigh Street Allentown PA 18103 232948774 Laboratory Services PA Lehigh Valley Hospital Related 18194515 64204639 0 0 Lehigh Magnetic Imaging Center 1230 S Cedar Crest Blvd Allentown PA 18103 232429077 Imaging Center PA N/A Lehigh Valley Health Services Inc 2100 Mack Blvd 5th Floor Allentown PA 181035622 232263665 Health Care Related Services PA N/A C Lehigh Valley Anesthesia Services PC 2100 Mack Blvd 5th Floor Allentown PA 181035622 233096124 Anesthesia Services PA N/A C Westgate Professional Center Inc 2100 Mack Blvd 5th Floor Allentown PA 181035622 231657333 Real Estate Rentals PA N/A C Lehigh Valley Physician Hospital Organization Inc 2100 Mack Blvd 5th Floor Allentown PA 181035622 232750430 Health Care Related Services PA Lehigh Valley Hospital C -1641720 7139609 0.45000 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 0 0 Lehigh Valley Anesthesia Services PC L 7272485