2014-04-08T08:41:06-05:00 2013-06-30 BKD LLP 1201 Walnut Suite 1700 Kansas City MO 641062246 990 2012-07-01 271672159 KVC Hospitals Inc % PAUL KLAYDER KVCH 9133224900 21350 W 153rd St Suite Olathe KS 66061 B WAYNE SIMS 9133224900 2014-05-15 true Michael J Engle 8162216300 2012 2015-11-30 17:44:51Z B WAYNE SIMS 21350 W 153RD ST OLATHE KS 66061 18248617 false X WWW.KVC.ORG X 2010 KS IT IS THE MISSION OF KVC TO ENRICH AND ENHANCE THE LIVES OF CHILDREN AND THEIR FAMILIES BY PROVIDING MEDICAL AND BEHAVIORAL HEALTHCARE, SOCIAL SERVICES AND EDUCATION. 6 0 327 232 0 0 975666 415345 15247124 17645005 1393 952 54074 187315 16278257 18248617 115 24 0 0 7913641 9170924 0 0 0 8230627 10230511 16144383 19401459 133874 -1152842 4711116 6043950 1040487 1381049 3670629 4662901 X IT IS THE MISSION OF KVC TO ENRICH AND ENHANCE THE LIVES OF CHILDREN AND THEIR FAMILIES BY PROVIDING MEDICAL AND BEHAVIORAL HEALTHCARE, SOCIAL SERVICES AND EDUCATION. false false 3470585 3600909 WHEATLAND: KVC PROVIDES A CONTINUUM OF MEDICAL & BEHAVIORAL HEALTHCARE SERVICES TO CHILDREN & ADOLESCENTS EACH YEAR AT ITS JOINT-COMMISSION ACCREDITED, 24-BED FACILITY IN HAYS, KS WITH THE HIGHEST INDUSTRY SAFETY STANDARDS. PSYCHIATRIC HOSPITAL AND RESIDENTAL TREATMENT FACILITY PROGRAMS ARE PROVIDED FROM THIS LOCATION. (SEE CONTINUATION ON SCHEDULE O) 13098828 14044096 PRAIRIE RIDGE: KVC PROVIDES A CONTINUUM OF MEDICAL & BEHAVIORAL HEALTHCARE SERVICES TO MORE THAN 1,000 CHILDREN & ADOLESCENTS EACH YEAR AT ITS JOINT-COMMISSION ACCREDITED, 75-ACRE CAMPUS IN KANSAS CITY. PSYCHIATRIC HOSPITAL AND RESIDENTAL TREATMENT FACILITIES ARE PROVIDED WITH THE HIGHEST INDUSTRY SAFETY STANDARDS. KVC SEEKS TO WORK "IN CHILD'S TIME" TO PROVIDE COMPASSIONATE AND EFFECTIVE CARE THROUGH THE USE OF TIMELY, INDIVIDUALIZED TREATMENT PLANNING IN COLLABORATION WITH THE CHILD/YOUTH, FAMILY AND COMMUNITY. (SEE CONTINUATION ON SCHEDULE O) 16569413 true true false true false false false false false false true false false false false true false true false false false false false false false false true true false false true false false false false false false false true false false false false false true true true false false true 42 0 true 327 true false false false false false false false false false false X 6 0 false false false false true true true true true false false true true true true true true false false false KS X PAUL KLAYDER 9133224900 21350 W 153RD ST OLATHE KS 66061 X B WAYNE SIMS-SEE SCH O 10.0 50.0 X X 0 275493 57686 ANNE ROBERTS-SEE SCH O 10.0 50.0 X X 0 185350 18161 PAUL KLAYDER-SEE SCH O 10.0 50.0 X X 0 165353 20012 SHERRY LOVE-SEE SCH O 10.0 50.0 X 0 166122 21127 JASON HOOPER 40.0 X 122694 0 12679 VISHAL ADMA MD 1.0 X 0 0 0 122694 792318 129665 2 false true false VISHAL ADMA MD PA CONTRACTED SERVICES 1289697 WEISS STAFFING SOLUTIONS CONTRACTED SERVICES 177002 PROF NURSING SERVICES CONTRACTED SERVICES 472837 PHYSICIANS REFERENCE LAB CONTRACTED SERVICES 227497 PAM'S BAKERY SHOP AND CATERING LLC CONTRACTED SERVICES 144382 9 46000 355088 14257 415345 NET PATIENT SERVICE REVENUE 624100 17645005 17645005 17645005 952 952 0 0 0 0 0 0 0 0 0 MANAGEMENT FEE 900099 6000 6000 OTHER INCOME 900099 181315 181315 187315 18248617 17645005 188267 0 24 24 0 0 144887 144887 0 7430112 7430112 62000 62000 839160 839160 694765 694765 1967000 1967000 101472 101472 0 0 0 0 4045190 4045190 0 0 15445 15445 955360 955360 0 0 876564 876564 102454 102454 0 20733 20733 1520 1520 0 419123 419123 109694 109694 REPAIRS & MAINTENANCE 173082 173082 LICENSES & DUES 125364 125364 MEDICAL SUPPLIES 543741 543741 BAD DEBT EXPENSE 753482 753482 20287 19937 350 19401459 16569413 2832046 0 57258 53290 15049 450061 90279 71750 3269053 4602569 0 0 0 0 0 0 0 0 94292 14880 2917127 2071627 1179285 845500 0 0 0 0 0 0 0 0 5900 5900 4711116 6043950 894061 1370883 0 0 100987 10166 0 0 0 0 0 0 45439 0 0 0 0 0 1040487 1381049 X 3670629 4662901 0 0 0 0 3670629 4662901 4711116 6043950 X -1152842 2145114 X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 1112 102633 1112 102633 19400347 95495451 19401459 95598084 1000000 4680759 250000 1170191 false 4747161 4695469 4680759 14123389 21185084 62693 61410 102633 226736 1186790 1173869 1170191 3530850 5296275 0 0 0 0 0 1151393 819044 332349 0 1760853 1252583 508270 0 4881 4881 845500 0 0 UNCERTAIN TAX POSITIONS DISCLOSURE SCHEDULE D, PART X, LINE 2 MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON THEIR REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS. true true X true X true X 150. true true false false 12787016 12142816 644200 0.03320 12787016 12142816 644200 0.03320 12787016 12142816 644200 0.03320 false 753482 true true NONE 2 1 WHEATLAND

205 E 7TH STREET HAYS KS 67601

X CHILDRENS' PSYCHIATRIC FACILITY 2 PRAIRIE RIDGE

4300 BRENNER DRIVE KANSAS CITY KS 66104

X CHILDRENS' PSYCHIATRIC FACILITY WHEATLAND true X X X X X X X X X 12 true false true X X X X true false true true 100 true 150. true X X X X X true true X X true false X false X X false false PRAIRIE RIDGE true X X X X X X X X X 12 true false true X X X X true false true true 100 true 150. true X X X X X true true X X true false X false X X false false COSTING METHODOLOGY SCHEDULE H, PART I, LINE 7 THE COSTING METHODOLGY USED IN DETERMINING THE AMOUNTS REPORTED IN THE TABLE WAS BASED ON WORKSHEET 3, USING GROSS PATIENT CHARGES LESS COST OF THE SERVICE PROVIDED. THE EXCESS COST WAS THEN DIVIDED BY THE TOTAL EXPENSE LESS BAD DEBT. SCHEDULE H, PART I, LINE 7, COLUMN (F) BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25 BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $753,482. BAD DEBT EXPENSE SCHEDULE H, PART III, LINE 2 THE ORGANIZATION USES HISTORICAL COLLECTION DATA AS WELL AS ESTIMATED PERCENTAGES APPLIED TO THE VARIOUS AGED CATEGORIES TO ESTIMATE THE AMOUNT OF UNCOLLECTIBLE RECEIVABLES. BAD DEBT EXPENSE FOOTNOTE SCHEDULE H, PART III, LINE 4 ACCOUNTS RECEIVABLE ARE STATED AT THE NET REALIZABLE VALUE, WHICH IS THE AMOUNT MANAGEMENT EXPECTS TO COLLECT FROM OUTSTANDING BALANCES. THE ORGANIZATION PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS, WHICH IS BASED UPON A REVIEW OF OUTSTANDING RECEIVABLES, HISTORICAL COLLECTION INFORMATION AND EXISTING ECONOMIC CONDITIONS. ACCOUNTS RECEIVABLE ARE ORDINARILY DUE 30 DAYS AFTER THE ISSUANCE OF THE INVOICE. ACCOUNTS PAST DUE MORE THAN 90 DAYS ARE CONSIDERED DELINQUENT. DELINQUENT RECEIVABLES ARE WRITTEN OFF BASED ON INDIVIDUAL CREDIT EVALUATION AND SPECIFIC CIRCUMSTANCES OF THE CUSTOMER. THE BAD DEBT EXPENSE IS FROM THOSE CLIENTS THAT DO NOT QUALIFY FOR CHARITY CARE OR FOR FINANCIAL ASSISTANCE THAT ARE NOT EXPECTED TO PAY. THE COST OF THE VISITS ARE DETERMINED BY TAKING THE AMOUNT OF REVENUE RECORDED FROM THE BAD DEBT, DIVIDING BY THE TOTAL REVENUE, MULTIPLYING BY THE PROFIT FOR THE YEAR, THEN SUBTRACTING FROM THE BAD DEBT REVENUE RECORDED. COLLECTION PRACTICES SCHEDULE H, PART III, LINE 9B KVC DOES NOT SEND CHARITY CARE OR FINANCIAL ASSISTANCE CLIENTS TO COLLECTION AGENCIES. KVC WORKS WITH THESE CLIENTS TO SET UP PAYMENT PLANS THAT THE CLIENT CAN MAINTAIN. COMMUNITY INPUT INTO CHNA REPORT SCHEDULE H, PART V, SECTION B, LINE 3 THE PROCESS FOR OBTAINING INPUT FROM REPRESENTATIVES OF THE COMMUNITY WAS THE SAME FOR BOTH THE PRAIRIE RIDGE AND WHEATLAND PSYCHIATRIC HOSPITALS: METHODOLOGY - SURVEYS WITH 10 KEY STAKEHOLDERS (INFORMANTS) WERE CONDUCTED. STAKEHOLDERS WERE DETERMINED BASED ON THEIR A) SPECIALIZED KNOWLEDGE OR EXPERTISE IN BEHAVIORAL HEALTH, B) THEIR AFFILIATION WITH LOCAL GOVERNMENT, SCHOOLS AND INDUSTRY OR C) THEIR INVOLVEMENT WITH UNDERSERVED AND MINORITY POPULATIONS. A WEB-BASED SURVEY TOOL WAS USED TO GATHER INPUT VIA A STANDARD 11-QUESTION SURVEY. THE QUESTIONS WERE GROUPED INTO THE FOLLOWING 4 MAJOR CATEGORIES: 1. GENERAL OPINIONS REGARDING MENTAL AND BEHAVIORAL HEALTH 2. UNDERSERVED POPULATIONS AND COMMUNITIES OF NEED 3. BARRIERS TO IMPROVING MENTAL AND BEHAVIORAL HEALTH FOR CHILDREN AND YOUTH 4. MOST CRITICAL MENTAL/BEHAVIORAL HEALTH ISSUES FOR CHILDREN AND FAMILIES STAKEHOLDERS' RESPONSES WERE SUMMARIZED AND REPORTED FOR EACH OF THE CATEGORIES. HEALTH NEEDS IDENTIFIED THROUGH KEY STAKEHOLDER INTERVIEWS WERE INCLUDED AND REPORTED AS HEALTH NEEDS. NEEDS FOR VULNERABLE POPULATIONS WERE SEPARATELY REPORTED ON THE ANALYSIS IN ORDER TO FACILITATE THE PRIORITIZATION PROCESS. KEY STAKEHOLDERS (INFORMANTS) - THE FOLLOWING INDIVIDUALS PARTICIPATED IN THE SURVEY: RANDY CALLSTROM, EXECUTIVE DIRECTOR, PACES/WYANDOT CENTER, KANSAS CITY, KS TERRY CUNNINGHAM , PROJECT COORD., CHILDREN'S ENHANCEMENT PROJECT, KANSAS CITY, MO JERRY SMITH, CRISIS TEAM LEADER, FAMILY GUIDANCE, TOPEKA, KS BILL BROWN, ACI COORDINATOR , FAMILY GUIDANCE, ST. JOSEPH, MO JEANINE FORSBERG, DIRECTOR OF EMERGENCY SERVICES, SALINA REGIONAL HOSPITAL, SALINA, KS SANDY HASHMAN, EXECUTIVE DIRECTOR , OPTUM HEALTH OF KANSAS MACHA GREENLEAF CATHY SCHAFFER JAMIE MALONE ANN YOUNG AVAILABILITY OF CHNA REPORT SCHEDULE H, PART V, SECTION B, LINE 5 THE CHNA REPORTS FOR BOTH WHEATLAND AND PRAIRIE RIDGE HOSPITALS ARE AVAILABLE AT THE ORGANIZATION'S WEBSITE AT HTTP://WWW.KVC.ORG/KANSAS/KANSAS-SERVICES/CHILDRENS-PSYCHIATRIC-HOSPITALS FINANCIAL ASSISTANCE POLICY SCHEDULE H, PART V, SECTION B, LINE 12H PRESUMPTIVE ELIGIBILITY - (E.G., FOOD STAMP PROGRAM, INFANTS, CHILDREN, ETC.). IF THE PATIENT IS ALREADY ENROLLED IN ONE OF THESE PROGRAMS, THEY WILL AUTOMATICALLY QUALIFY FOR SOME LEVEL OF FINANCIAL ASSISTANCE BASED ON THEIR INCOME LEVEL. AMOUNTS CHARGED TO FAP ELIGIBLE INDIVIDUALS SCHEDULE H, PART V, LINE 20D THE MEDICAID RATES ARE USED WHEN CALCULATING THE MAXIMUM AMOUNTS THAT CAN BE CHARGED TO FAP-ELIGIBLE INDIVIDUALS FOR EMERGENCY OR MEDICALLY NECESSARY CARE. NEEDS ASSESSMENT SCHEDULE H, PART VI, LINE 2 THE WHEATLAND HOSPITAL WAS CREATED IN COOPERATION WITH THE STATE OF KANSAS. THE STATE OF KANSAS ASSESSED THE NEED FOR A PSYCHIATRIC HOSPITAL FOR THE CENTRAL AND WESTERN PART OF KANSAS. PRAIRIE RIDGE PROVIDES MENTAL HEALTH CARE TO THE COMMUNITIES IT SERVES. THIS NEED IS ASSESSED BY DISCUSSING INPATIENT MENTAL HEALTH NEEDS WITH STATE FOSTER CARE CONTRACTORS, OTHER HOSPITALS AND COMMUNITY MENTAL HEALTH CENTERS. THE STATE OF KANSAS HAS ALSO ASSESSED THE NEED FOR THESE SERVICES. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE SCHEDULE H, PART VI, LINE 3 KVC'S CHARITY CARE POLICY IS ON THE COMPANY'S WEBSITE (KVC.ORG) AND GIVEN OUT UPON REQUEST. THE MAJORITY OF CLIENTS SERVED BY KVC ARE ALREADY ON A FEDERAL, STATE OR LOCAL PROGRAM. COMMUNITY INFORMATION SCHEDULE H, PART VI, LINE 4 WHEATLAND SERVES CHILDREN FROM CENTRAL AND WESTERN KANSAS. THIS IS A LARGE GEOGRAPHICAL AREA WHICH COVERS APPROXIMATELY HALF OF THE STATE. THE CLIENTS OFTEN COME FROM LOW INCOME OR LOW MIDDLE INCOME HOUSEHOLDS. PRAIRIE RIDGE GENERALLY SERVES CHILDREN FROM THE GREATER METROPOLITAN KANSAS CITY AREA AND ALSO SERVES SOME CHILDREN FROM EASTERN NEBRASKA WHEN LOCAL PROVIDERS CANNOT EFFECTIVELY MEET THEIR NEEDS. PROMOTION OF COMMUNITY HEALTH SCHEDULE H, PART VI, LINE 5 KVC HOSPITALS ARE PSYCHIATRIC HOSPITALS. THEREFORE TRAINING PROVIDED IN THE COMMUNITY HELPS EXPAND THE UNDERSTANDING OF BEHAVIORAL HEALTHCARE ISSUES, PARTICULARLY IN PRE-ADOLESCENTS AND ADOLESCENTS. KVC IS A LEADER IN TRAUMA-INFORMED CARE AND TREATMENT. KVC PROFESSIONALS PROVIDE TRAINING TO COMMUNITY PROVIDERS AND KVC ALSO PROVIDES CONFERENCES LED BY NATIONAL PURVEYORS AND EXPERTS. THESE EVENTS PROMOTE CONTINUITY AND PROFESSIONAL GROWTH IN THE TREATMENT CULTURES OF OUR VARIOUS COMMUNITIES. false true false false false false false false false B WAYNE SIMS-SEE SCH O 0 260493 0 15000 0 0 0 50000 0 7686 0 333179 0 0 ANNE ROBERTS-SEE SCH O 0 175350 0 10000 0 0 0 10000 0 8161 0 203511 0 0 PAUL KLAYDER-SEE SCH O 0 160353 0 5000 0 0 0 10000 0 10012 0 185365 0 0 SHERRY LOVE-SEE SCH O 0 161122 0 5000 0 0 0 10000 0 11127 0 187249 0 0 SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN SCHEDULE J, PART 1, LINE 4B B. WAYNE SIMS $ 50,000 ANNE ROBERTS $ 10,000 PAUL KLAYDER $ 10,000 SHERRY LOVE $ 10,000 PAYMENT OF COMPENSATION SCHEDULE J, PART II THE COMPENSATION REPORTED ON SCHEDULE J, PART II WAS PAID BY KVC HEALTH SYSTEMS, INC. A RELATED TAX EXEMPT ORGANIZATION. KVC HEALTH SYSTEMS, INC. USES A COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, FORM 990 OF OTHER ORGANIZATIONS, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE TO ESTABLISH THE COMPENSTION OF B WAYNE SIMS, BOARD PRESIDENT OF KVC HOSPITALS, INC. AND PRESIDENT/CEO OF KVC HEALTH SYSTEMS, INC. VISHAL ADMA MD PA SEE PART V 1289697 SEE PART V false BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS SCHEDULE L, PART IV, LINE 1 (B) VISHAL ADMA, M.D. IS A DIRECTOR OF KVC HOSPITALS, INC. AND OWNER VISHAL ADMA, M.D., P.A. (D) VISHAL ADMA, M.D. P.A. IS COMPENSATED FOR THE SERVICES OF MEDICAL DIRECTOR AND PROVIDING THE DOCTORS FOR PSYCHIATRIC SERVICES FOR KVC HOSPITALS, INC. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINES 4A & 4B LINE 4A: KVC SEEKS TO WORK "IN CHILD'S TIME" TO PROVIDE COMPASSIONATE AND EFFECTIVE CARE THROUGH THE USE OF TIMELY, INDIVIDUALIZED TREATMENT PLANNING IN COLLABORATION WITH EACH CHILD/YOUTH, THEIR FAMILY AND COMMUNITY. KVC HAS HAD A STRONG RELATIONSHIP WITH DR. GLENN SAXE, THE DEVELOPER OF TRAUMA SYSTEMS THERAPY (TST) AND IS A LEADER IN TRAUMA INFORMED CARE. IN ADDITION TO ITS PRIVATE COMMUNITY HOSPITAL, KVC'S STAR PROGRAM REPRESENTS INPATIENT HOSPITAL SERVICES FOR CHILDREN REFERRED BY THE STATE, ALLOWING KANSAS TO CLOSE ITS PREVIOUSLY STATE OPERATED, INPATIENT HOSPITALS FOR CHILDREN AND ADOLESCENTS. THIS PROGRAM'S "NO REJECT-NO EJECT" ADMISSIONS POLICY REFLECTS ITS "SAFETY NET" STATUS FOR WESTERN KANSAS. OUTPATIENT SERVICES, INCLUDING IN-HOME THERAPY, ARE PROVIDED IN MANY KANSAS COMMUNTIES TO SUPPORT SUCCESSFUL COMMUNITY TRANSITION. KVC SERVES AS A TEACHING SITE FOR CHILD PSYCHIATRY FELLOWS FROM THE UNIVERSITY OF KANSAS MEDICAL CENTER, AND FOR SOCIAL WORKERS AND NURSES FROM NUMEROUS AREA UNIVERSITIES. LINE 4B: KVC HAS A LONG, ESTABLISHED RELATIONSHIP WITH DR. GLENN SAXE, THE DEVELOPER OF TRAUMA SYSTEMS THERAPY (TST) IN ADDITION TO OTHER EVIDENCE-BASED TREATMENT AND BEST PRACTICE MODELS. KVC IS A LEADER IN PROVIDING TRAUMA INFORMED CARE. IN ADDITION TO ITS PRIVATE COMMUNITY HOSPITAL, KVC'S STAR PROGRAM REPRESENTS A HOSPITAL PROGRAM FOR CHILDREN AND YOUTH REFERRED BY THE STATE, ALLOWING KANSAS TO CLOSE ITS PREVIOUSLY STATE OPERATED, HOSPITAL PROGRAMS FOR CHILDREN AND ADOLESCENTS. THIS PROGRAM'S "NO REJECT-NO EJECT" ADMISSIONS POLICY REFLECTS ITS "SAFETY NET" STATUS FOR EASTERN KANSAS. OUTPATIENT SERVICES, INCLUDING IN-HOME THERAPY, ARE PROVIDED IN KANSAS AND MISSOURI. KVC SERVES AS A TEACHING SITE FOR FELLOWS FROM THE UNIVERSITY OF KANSAS MEDICAL CENTER COMPLETING CHILD PSYCHIATRY ROTATIONS AS WELL AS SOCIAL WORKERS AND NURSES FROM NUMEROUS AREA UNIVERSITIES AND PROGRAMS. MEMBERS OR STOCKHOLDERS FORM 990, PART VI, SECTION A, LINE 6 KVC HEALTH SYSTEMS, INC., A KANSAS NOT-FOR-PROFIT CORPORATION, IS THE SOLE MEMBER OF KVC HOSPITALS, INC. KVC HEALTH SYSTEMS, INC. IS DESIGNATED AS THE SOLE MEMBER; KVC HEALTH SYSTEMS, INC. CONTINUES TO QUALIFY AS A QUALIFIED ORGANIZATION AS DESCRIBED IN SECTION 501(C)(3) AND SECTIONS 509(A)(3) OF THE IRC. KVC HEALTH SYSTEMS, INC. HAS THE RIGHT TO CHANGE THE NUMBER OF DIRECTORS, TO APPOINT AND ELECT AND REMOVE THE MEMBERS OF KVC HOSPITALS, INC.'S BOARD OF DIRECTORS. KVC HEALTH SYSTEMS, INC. HAS THE POWER TO APPROVE SIGNIFICANT DECISIONS OF KVC HOSPITALS, INC. KVC HEALTH SYSTEMS, INC. IS NOT ENTITLED TO RECEIVE A SHARE OF KVC HOSPITALS, INC.'S PROFITS. KVC HEALTH SYSTEMS, INC. IS ENTITLED TO KVC HOSPITALS, INC.'S NET ASSETS UPON DISSOLUTION. MEMBERS OR STOCKHOLDERS MAY ELECT GOVERNING BOARD FORM 990, PART VI, SECTION A, LINE 7A KVC HEALTH SYSTEMS, INC. BEING THE SOLE MEMBER OF KVC HOSPITALS, INC. HAS THE RIGHT TO ELECT ALL MEMBERS OF THE BOARD OF DIRECTORS. GOVERNING BOARD DECISIONS SUBJECT TO APPROVAL OF MEMBERS OR STOCKHOLDERS FORM 990, PART VI, SECTION A, LINE 7B THE CORPORATE BYLAWS OF KVC HOSPITALS, INC. IDENTIFY CERTAIN RIGHTS AND POWERS WHICH ARE RESERVED TO KVC HEALTH SYSTEMS, INC. THE SOLE MEMBER. IN EACH INSTANCE, THE RIGHTS AND POWERS RESERVED TO THE SOLE MEMBER MAY BE SUMMARIZED AS FOLLOWS: 1. BOARD OF DIRECTORS THE SOLE MEMBER HAS THE POWER TO ELECT THE BOARD OF DIRECTORS, REMOVE DIRECTORS, AND CHANGE THE NUMBER OF DIRECTORS. 2. ARTICLES OF INCORPORATION AND BYLAWS KVC HOSPITALS, INC. ARTICLES OF INCORPORATION AND BYLAWS MAY BE AMENDED BY THE SOLE MEMBER. 3. ANNUAL BUDGETS THE SOLE MEMBER HAS THE POWER TO APPROVE OR DISAPPROVE ANNUAL BUDGETS ADOPTED BY THE BOARD OF DIRECTORS AND TO ESTABLISH LEVELS OF APPROVAL AUTHORITY FOR KVC HOSPITALS, INC. 4. DISSOLUTION OR LIQUIDATION THE SOLE MEMBER HAS THE POWER TO APPROVE IN ADVANCE ANY PROPOSED DISSOLUTION AND/OR LIQUIDATION OF KVC HOSPITALS, INC. PROCESS TO REVIEW THE FORM 990 FORM 990, PART VI, SECTION B, LINE 11B AN INDEPENDENT ACCOUNTING FIRM PREPARES AND REVIEWS THE 990. THE 990 IS THEN REVIEWED BY THE ORGANIZATION'S OFFICERS AND ACCOUNTING PERSONNEL. ANY QUESTIONS AND CONCERNS THE ORGANIZATION'S OFFICERS AND ACCOUNTING PERSONNEL HAVE ARE ADDRESSED AND ANY CORRECTIONS OR CLARIFICATIONS THAT NEED TO BE MADE ARE MADE. THE FINAL FORM 990 WITH ALL REQUIRED SCHEDULES IS THEN PROVIDED TO ALL VOTING MEMBERS OF THE BOARD PRIOR TO FILING THE 990. CONFLICT OF INTEREST POLICY FORM 990, PART VI, SECTION B, LINE 12C EACH YEAR BOARD MEMBERS AND OFFICERS FILL OUT A PACKET THAT DETAILS ANY CONFLICTS OF INTEREST. THE CFO REVIEWS THE PACKETS TO DETERMINE IF THERE ARE ANY CONFLICTS OF INTEREST. IF ANY CONFLICT EXIST, THE BOARD MEMBER WITH THE CONFLICT DOES NOT PARTICIPATE IN THE DISCUSSION OR VOTE ON THE ISSUE INVOLVING THE CONFLICT. EXECUTIVE COMPENSATION DETAIL FORM 990, PART VII & SCHEDULE J, PART II THE FOUR EXECUTIVE OFFICERS (CHIEF EXECUTIVE OFFICER, CHIEF OPERATING OFFICER, CHIEF FINANCIAL OFFICER, AND CHIEF CLINICAL OFFICER) OVERSEE AND PERFORM DUTIES FOR ALL OF THE COMPANIES IN THE CONSOLIDATED GROUP OF KVC HEALTH SYSTEMS. THE FOLLOWING ARE THE PERCENTAGES OF EACH COMPANY'S DIVISIONAL BUDGETS TO THE CONSOLIDATED BUDGET, WHICH REPRESENTS THE RELATIVE PERCENTAGE OF TIME SPENT BY THE EXECUTIVE OFFICERS: - KVC BEHAVIORAL HEALTHCARE, INC. 36% - KVC BEHAVIORAL HEALTHCARE WEST VIRGINIA, INC. 9% - KVC HEALTH SYSTEMS, INC. 7% - KVC BEHAVIORAL HEALTHCARE KENTUCKY, INC. 15% - KVC BEHAVIORAL HEALTHCARE NEBRASKA, INC. 15% - KVC HOSPITALS, INC. 17% - KVC REAL ESTATE HOLDINGS, INC. 1% - KVC FOUNDATION, INC. <1% RECONCILIATION OF NET ASSETS FORM 990, PART XI, LINE 9 INTERCOMPANY TRANSFER $ 2,145,114 OTHER FEES FOR SERVICES FOR NON-EMPLOYEES FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING TOTAL FEES:1386476 OTHER FEES FOR SERVICES FOR NON-EMPLOYEES FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACT LABOR TOTAL FEES:959503 OTHER FEES FOR SERVICES FOR NON-EMPLOYEES FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACT PHYSICIANS TOTAL FEES:1699211 KCV HEALTH SYSTEMS INC 21350 W 153RD STREET OLATHE KS 66061 262516589 MANAGEMENT KS 501(C)(3) 11B NA false KVC BEHAVIORAL HEALTHCARE WEST VIRGINIA 300 KENTON DRIVE CHARLESTON WV 25311 311770280 FOSTER CARE KS 501(C)(3) 9 KVC HSI true KVC FOUNDATION INC 21350 W 153RD STREET OLATHE KS 66061 262516476 FUNDRAISING WV 501(C)(3) 11B KVC HSI true KVC REAL ESTATE HOLDINGS INC 21350 W 153RD STREET OLATHE KS 66061 262516519 REAL ESTATE KS 501(C)(3) 11B KVC HSI true KVC BEHAVIORAL HEALTHCARE KENTUCKY INC 900 BEASLEY STREET LEXINGTON KY 40509 270795565 IN HOME SVCS KS 501(C)(3) 9 KVC HSI true KVC BEHAVIORAL HEALTHCARE NEBRASKA INC 825 M STREET LINCOLN NE 68508 270408957 FOSTER CARE KY 501(C)(3) 9 KVC HSI true KVC BEHAVIORAL HEALTHCARE INC 21350 W 153RD STREET OLATHE KS 66061 480770308 FOSTER CARE NE 501(C)(3) 9 KVC HSI true false false false false false false false false false false true false true false true false false true true KVC BEHAVIORAL HEALTHCARE INC R 1889415 BOOK VALUE KVC BEHAVIORAL HEALTHCARE NEBRASKA INC R 117058 BOOK VALUE KVC BEHAVIORAL HEALTHCARE INC S 441556 BOOK VALUE KVC REAL ESTATE HOLDINGS INC K 521400 BOOK VALUE KVC BEHAVIORAL HEALTHCARE INC M 240000 BOOK VALUE KVC BEHAVIORAL HEALTHCARE I 21350 W 153RD STREET OLATHE KS 66061 480770308 X 0 0 0 35762660 35762660 1000000 250000 0 0 0 KVC HEALTH SYSTEMS INC 21350 W 153RD STREET OLATHE KS 66061 262516589 X 0 73982 73982 9139096 9213078 610654 152664 0 0 0 KVC BEHAVIORAL HEALTHCARE WE 300 KENTON DRIVE CHARLESTON WV 25311 311770280 X 0 0 0 6272389 6272389 463619 115905 0 0 0 KVC BEHAVIORAL HEALTHCARE KE 900 BEASLEY STREET LEXINGTON KY 40509 270795565 X 0 0 0 11237724 11237724 711886 177972 0 0 0 KVC BEHAVIORAL HEALTHCARE NE 825 M STREET LINCOLN NE 68508 270408957 X 0 27539 27539 13289495 13317034 815852 203963 0 0 0 KVC HOSPITALS INC 21350 W 153RD STREET OLATHE KS 66061 271672159 X 0 1112 1112 19400347 19401459 1000000 250000 0 0 0 KVC REAL ESTATE HOLDINGS IN 21350 W 153RD STREET OLATHE KS 66061 262516519 X 0 0 0 382522 382522 76504 19126 0 0 0 KVC FOUNDATION INC 21350 W 153RD STREET OLATHE KS 66061 262516476 X 0 0 0 11218 11218 2244 561 0 0 0