2024-12-06T14:34:42-06:00 2024-06-30 990 2023-07-01 232516451 POCONO HEALTH FOUNDATION POCO 4842241876 PO BOX 4000 ALLENTOWN PA 18105 ROBERT THOMAS ASSISTANT TREASURER 4842241876 2024-12-06 0 2023 2024-10-15 13:58:12Z ROBERT THOMAS PO BOX 4000 ALLENTOWN PA 18105 599851 0 X WWW.LVHN.ORG X 1988 PA TO IMPROVE THE QUALITY OF LIFE IN OUR COMMUNITY THROUGH AN INVESTMENT IN POCONO HEALTH SYSTEM. 18 12 0 0 0 0 245106 578959 0 0 20195 20892 -10890 -16841 254411 583010 46000 46495 0 0 280667 69442 3163 0 243624 352472 306114 682302 422051 -427891 160959 9244479 10472536 2840135 3876143 6404344 6596393 X OUR MISSION IS WHO WE ARE AND WHAT WE DO: TO PROVIDE WORLD CLASS CARE CLOSE TO HOME. OUR VISION IS WHAT WE AIM FOR TO BEST SERVE OUR COMMUNITY: TO BUILD A HEALTHIER COMMUNITY. 0 0 178427 46495 11982 AS A RESIDENT OF MONROE COUNTY, IT IS LIKELY YOUR LIFE HAS BENEFITED FROM THE EFFORTS OF THE POCONO FOUNDATION (PF). THE MISSION OF THE PF IS TO ENHANCE THE QUALITY OF LIFE AND HEALTH FOR THOSE LIVING IN MONROE COUNTY. THIS MISSION IS SUPPORTED IN A VARIETY OF WAYS.THE MOST VISIBLE ACHIEVEMENT OF THE PF WAS THE $26 MILLION CAPITAL CAMPAIGN BETWEEN THE YEARS OF 2009 THROUGH 2012 WHICH HELPED BUILD AND FURNISH THE DALE & FRANCES HUGHES CANCER CENTER. THE HUGHES CANCER CENTER PROVIDES STATE-OF-THE-ART CANCER CARE FOR RESIDENTS IN MONROE COUNTY AND ACROSS THE POCONO REGION. IN 2019, THE HUGHES CANCER CENTER EARNED FULL ACCREDITATION AS PART OF THE MEMORIAL SLOAN KETTERING (MSK) ALLIANCE. THIS AFFILIATION, ONE OF ONLY THREE IN THE UNITED STATES, PROVIDES LOCAL RESIDENTS WITH A CANCER DIAGNOSIS AND ACCESS TO LIFE-SAVING PROTOCOLS AND CLINICAL TRIALS AVAILABLE THROUGH MSK.BECAUSE A HEALTHY COMMUNITY IS ABOUT MORE THAN JUST PROVIDING HEALTH CARE, PF PARTNERS WITH MANY LOCAL NONPROFITS TO ADVANCE ITS MISSION. MUCH OF THIS SUPPORT IS OFFERED THROUGH THE PF'S ANNUAL GRANT & SCHOLARSHIP PROGRAM. FOR FY24, PF HAS AWARDED MORE THAN $75,000 TO COMMUNITY NON-PROFITS AND AN ADDITIONAL $46,000 TO STUDENTS PURSUING AN EDUCATION IN HEALTHCARE. THE IMPACT OF THESE GRANTS AND SCHOLARSHIPS ARE SUBSTANTIAL. FROM FOOD, CLOTHING, AND SHELTER TO EDUCATION, TRAINING, AND PROGRAMS FOR THOSE WITH DISABILITIES THESE HUMAN SERVICES ARE THE BACKBONE OF A HEALTHY COMMUNITY.SCHOLARSHIPS ARE ALSO AWARDED TO APPLICANTS THROUGHOUT THE POCONO REGION EACH YEAR BASED ON BOTH ACADEMIC MERIT AND A PASSION FOR SERVING THE HEALTHCARE INDUSTRY. THESE MONETARY AWARDS PROVIDE SUPPORT TO INDIVIDUALS WHO ARE COMMITTED TO SERVING PATIENTS. PAST SCHOLARSHIP RECIPIENTS HAVE GRADUATED TO BECOME NURSES, PHYSICIAN ASSISTANTS (PA), CERTIFIED REGISTERED NURSE PRACTITIONERS (CRNP), RADIOLOGISTS, PATHOLOGISTS, AND PHYSICIANS, WITH MANY CHOOSING TO WORK AT LEHIGH VALLEY HOSPITAL-POCONO (LVH-P) AFTER EARNING THEIR DEGREES.THE PF ACTIVELY SEEKS GRANT OPPORTUNITIES ALIGNED WITH THE STRATEGIC PRIORITIES OF LVH-POCONO. IN RECENT YEARS, GRANTS TOTALING NEARLY $600,000 HAVE BEEN SECURED TO FUND PROJECTS LIKE THE HEALING GARDEN AT THE MONROE COUNTY HOSPICE HOUSE, A NEW CT SIMULATOR FOR THE HUGHES CANCER CENTER, AND AN ADDITIONAL CARDIAC CATH LAB FOR THE HEART INSTITUTE AT LVH-POCONO. IN FY24, PF HAS RECEIVED GRANTS TOTALING $120,000 TO FUND OUR DIABETES PREVENTION AND BREAST CANCER NURSE NAVIGATOR PROGRAMS AT LVH-POCONO.EVERY YEAR THE PF ORGANIZES NUMEROUS DONOR RECOGNITION EVENTS TO THANK INDIVIDUALS, GROUPS, AND BUSINESSES WHO GENEROUSLY SUPPORT THE PROGRAMS AND PATIENTS AT LVH-P. ADDITIONALLY, WE STRIVE TO KEEP THE DONOR BASE INFORMED OF PF ACTIVITIES AND THE IMPACT THEIR DONATIONS HAVE ON NEW PROGRAMS AND INITIATIVES BOTH HERE AT LVH-P AND IN THE COMMUNITY WE SERVE.A GREAT EXAMPLE OF PARTNERING WITH OUR COMMUNITY IS THE ANNUAL HOLIDAY TREE LIGHTING EVENT. NOW IN ITS 33RD YEAR, THIS EVENT, HELD IN COLLABORATION WITH THE ROTARY CLUB OF THE SMITHFIELDS, RAISES MONEY AND AWARDS GRANTS TO MONROE COUNTY NONPROFITS WHOSE PROGRAMS SPECIFICALLY BENEFIT CHILDREN AND ADOLESCENTS. THIS CELEBRATION AND AWARD CEREMONY WAS HOSTED AT THE HUGHES CANCER CENTER WITH SEVERAL LOCAL SCHOOL BANDS AND CHORAL GROUPS PROVIDING MUSICAL ENTERTAINMENT. IN FY24, $13,750 IN GRANTS WERE AWARDED TO SIXTEEN COMMUNITY NONPROFIT AGENCIES.THE PF IS FORTUNATE TO SERVE A VERY GENEROUS COMMUNITY INTERESTED IN SUPPORTING THE PROGRAMS AND PATIENTS AT LVH-P. MANY COMMUNITY MEMBERS WHO HAVE BENEFITED FROM THE COMPREHENSIVE SERVICES AND COMPASSIONATE CARE AT LVH-P ARE EAGER TO 'PAY IT FORWARD AND DONATE IN A VARIETY OF WAYS. THE PF OFFERS MORE THAN 60 DIFFERENT FUNDS FOR WHICH THESE DONATIONS ARE TO BE DIRECTED BASED ON EACH DONOR'S PASSION OR INTERESTS. IN FY24, PF RECEIVED MORE THAN $470,000 IN THE PROGRAM AND PATIENT CARE-DIRECTED DONATIONS.IN THE SPIRIT OF VOLUNTEERISM TO CONTRIBUTE, THE AUXILIARY OF LVH-P SERVES AS AN EXTENSION OF THE PF. THE MISSION OF THE AUXILIARY IS TO RAISE MONEY FOR THE SOLE PURPOSE OF SUPPORTING SPECIFIC PRIORITIES AT LVH-POCONO. THIS GROUP OF VOLUNTEERS TYPICALLY MANAGES A VARIETY OF FUNDRAISERS THROUGHOUT THE YEAR, INCLUDING THE AUXILIARY GALA IN THE FALL AND THE AUXILIARY AUCTION IN THE SPRING. THE AUXILIARY OFFERS THE PERFECT FORUM FOR INDIVIDUALS WHO CANNOT GIVE MONETARILY, BUT THROUGH THEIR COLLECTIVE EFFORTS CAN LEVERAGE LARGE DONATIONS FOR A SPECIFIC INITIATIVE AT LVH-P. IN FY24, THE AUXILIARY DONATED $7,000 IN SUPPORT OF THE MONROE COUNTY HOSPICE HOUSE ENDOWMENT AND THE FAMILY BIRTH AND NEWBORN CENTER AT LVH-P.IN FY24, MORE THAN $126,000 IN DONATIONS FROM THE COMMUNITY WERE MADE TO THE MONROE COUNTY HOSPICE HOUSE. SUPPORT FOR THIS NETWORK OWNED FACILITY HAS RESONATED WITH MANY IN THE COMMUNITY AND THE EFFORTS OF THE HOSPICE HOUSE COMMUNITY GROUP TO LEAD FUNDRAISING EVENTS HAVE GENERATED A STEADY STREAM OF REVENUE. BEQUESTS HAVE ALSO CONTRIBUTED TO THE TOTAL DOLLARS RAISED AND FOUNDATION STAFF SUPPORTS THESE EFFORTS BY ADMINISTERING AND ACKNOWLEDGING ALL GIFTS RECEIVED. THE PHF WORKS CONTINUOUSLY TO ENSURE THE PROGRAMS AND PATIENTS AT LVH-P ARE SERVED, DONATIONS ARE STEWARDED RESPONSIBLY, AND DONORS ARE BOTH THANKED AND RECOGNIZED IN MEANINGFUL WAYS. WE REMAIN COMMITTED TO INCREASING THE QUALITY OF HEALTHCARE AND LIFE FOR THE RESIDENTS OF MONROE COUNTY.EFFECTIVE 12/31/23 PHF'S FORMER SOLE CORPORATE MEMBER, POCONO HEALTH SYSTEM, MERGED INTO THE NEW SOLE CORPORATE MEMBER, LEHIGH VALLEY HOSPITAL - POCONO. 178427 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 X 18 12 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X X THE ORGANIZATION 4842241876 PO BOX 4000 ALLENTOWN PA 18105 JOHN M PIERRO MBA DIRECTOR 1.00 39.00 X 0 1436806 25459 CHARLES K HERMAN MD DIRECTOR 1.00 39.00 X 0 672394 24519 CORNELIO R CATENA PRESIDENT/DIRECTOR 1.00 39.00 X X 0 714900 16860 LIV E VESELY MPH MA DIRECTOR 1.00 39.00 X 0 557546 25307 VICTOR T CATANIA MD DIRECTOR 1.00 39.00 X 0 373686 14148 CANDICE M PESOTINI DIRECTOR 1.00 39.00 X 0 70963 17482 WILLIAM B CRAMER ESQ DIRECTOR 1.00 X 0 0 0 JOAN M DUCKLOE DIRECTOR 1.00 X 0 0 0 JOANN FARDA SECRETARY/DIRECTOR 1.00 X X 0 0 0 ANDREW A FORTE PHD DIRECTOR 1.00 2.00 X 0 0 0 THOMAS KIRKWOOD DIRECTOR 1.00 2.00 X 0 0 0 ANN NEGVESKY CHAIRPERSON 1.00 X X 0 0 0 MARK PRIMOSE ESQ DIRECTOR 1.00 X 0 0 0 LORI A RUIZ TREASURER/DIRECTOR 1.00 X X 0 0 0 RICHARD J SCOTT DIRECTOR 1.00 X 0 0 0 ALLISTER R WILLIAMS MD DIRECTOR 1.00 X 0 0 0 W ANDREW WORTHINGTON ESQ DIRECTOR 1.00 2.00 X 0 0 0 THERESA YOCUM VICE CHAIRPERSON 1.00 X X 0 0 0 0 3826295 123775 0 0 1 0 0 12500 566459 578959 8910 8910 11982 0 11982 11982 11982 0 12500 16841 -16841 -16841 583010 11982 0 -7931 46495 46495 58508 11086 47422 385 385 9126 9126 1423 1423 12286 2328 9958 47249 8953 38296 -117 -117 713 713 OTHER PURCHASED SERVICE 158148 29965 128183 COMMUNITY ASSISTANCE 63449 63449 24386 4621 19765 422051 178427 0 243624 259201 235505 0 1538844 17113 14796 0 2317 8985278 8695870 9244479 10472536 4389 7189 2835746 3868954 2840135 3876143 X -2619718 -2840135 9024062 9436528 6404344 6596393 9244479 10472536 160959 1814 29276 0 X X 0 1 X 1 0 X X 3 LEHIGH VALLEY HOSPITAL - POCONO 240795623 3 1 0 0 POCONO AMBULATORY SERVICES INC 232611474 3 0 0 0 POCONO VNA-HOSPICE 232535297 10 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 PART IV, SECTION A, LINE 1 ALL ORGANIZATIONS SUPPORTED BY POCONO HEALTH FOUNDATION ARE UNDER COMMON MANAGEMENT. WHILE POCONO HEALTH FOUNDATION DOES NOT SPECIFICALLY LIST EACH ORGANIZATION IN ITS BYLAWS, ALL SUPPORTED ORGANIZATIONS HAVE A SIMILAR PURPOSE AND MISSION. MANAGEMENT DECIDES WHAT DESIGNATIONS ARE NEEDED. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 5768801 137861 526142 46495 357353 6121946 5412797 148496 341918 46775 181185 5768801 6054358 195471 -689303 147729 5412797 4668815 232558 1206224 -53239 6054358 4068907 718777 -107249 39500 -27880 4668815 0.00000 0.88000 0.12000 0 1 1 17113 14796 2317 2317 DUE TO AFFILIATES 3868954 3868954 X PART V, LINE 4: EACH FUND HAS BEEN BOARD DESIGNATED WITH A DIFFERENT PURPOSE. FUNDS ARE HELD AND DISBURSED PER THE DONOR INTENT. ALL FUNDS WERE SET UP TO BE CONSISTENT WITH THE ORGANIZATIONAL MISSION. OTHER EXPENDITURES FOR THE CURRENT YEAR INCLUDES AN ADJUSTMENT TO REMOVE PERPETUAL TRUST BALANCES FROM THE ENDOWMENT FUNDS IN ACCORDANCE WITH FASB ASC 958. PART X, LINE 2: THE ORGANIZATION AND ITS SUBSIDIARIES ARE GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, EXCEPT FOR TAX IMPOSED ON UNRELATED BUSINESS INCOME. THE MOST RECENT DETERMINATION LETTER, RECEIVED BY THE ORGANIZATION, IS DATED MAY 1, 2014. THE ORGANIZATION AND ITS SUBSIDIARIES ACCOUNT FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH ACCOUNTING STANDARDS CODIFICATION (ASC) TOPIC 740. THE ORGANIZATION'S FOR-PROFIT COMPONENTS RECOGNIZE DEFERRED TAX ASSETS AND LIABILITIES FOR THE FUTURE TAX IMPACT OF TEMPORARY DIFFERENCES BETWEEN AMOUNTS RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND THEIR RESPECTIVE TAX BASES AND THE FUTURE BENEFIT OF UTILIZATION NET OPERATING LOSS CARRYFORWARDS. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING ENACTED TAX RATES EXPECTED TO APPLY TO TAXABLE INCOME IN THE YEARS IN WHICH THOSE TEMPORARY DIFFERENCES ARE EXPECTED TO BE RECOVERED OR SETTLED. INCOME TAXES OF THE ORGANIZATION'S TAX-EXEMPT AND FOR-PROFIT COMPONENTS ARE NOT MATERIAL TO THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. 0 NURSING SCHOLARSHIPS 7 46495 0 BOOK PART I, LINE 2: THERE WERE A TOTAL OF 7 NEW NURSING SCHOLARSHIPS AWARDED IN FY2024. THE TOTAL FUNDS USED FOR ALL SCHOLARSHIPS WAS $46,495. 0 0 0 0 0 0 0 0 0 JOHN M PIERRO MBA DIRECTOR 0 956879 0 280529 0 199398 0 0 0 25459 0 1462265 0 0 CHARLES K HERMAN MD DIRECTOR 0 554165 0 113793 0 4436 0 0 0 24519 0 696913 0 0 CORNELIO R CATENA PRESIDENT/DIRECTOR 0 622278 0 89734 0 2888 0 0 0 16860 0 731760 0 0 LIV E VESELY MPH MA DIRECTOR 0 403133 0 102093 0 52320 0 0 0 25307 0 582853 0 0 VICTOR T CATANIA MD DIRECTOR 0 308541 0 57203 0 7942 0 0 0 14148 0 387834 0 0 PART I, LINE 3 ALL COMPENSATED DIRECTORS AND OFFICERS ARE PAID BY RELATED ORGANIZATIONS WHO USE THE FOLLOWING METHODS TO DETERMINE THEIR COMPENSATION: COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, COMPENSATION SURVEY, AND APPROVAL BY THE BOARD AND/OR COMPENSATION COMMITTEE. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION'S SOLE CORPORATE MEMBER IS LEHIGH VALLEY HOSPITAL-POCONO, A PENNSYLVANIA NON-PROFIT CORPORATION. FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION'S SOLE CORPORATE MEMBER, LEHIGH VALLEY HOSPITAL-POCONO, HAS THE POWER TO ELECT, APPOINT, APPROVE, OR REJECT MEMBERS OF THE ORGANIZATION'S GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B THE ORGANIZATION'S SOLE CORPORATE MEMBER, LEHIGH VALLEY HOSPITAL-POCONO, HAS THE POWER TO APPROVE OR REJECT CERTAIN MAJOR OPERATING DECISIONS MADE BY THE ORGANIZATION'S GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B 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 VICE-PRESIDENT, FINANCE & CONTROLLER AND THE LVHN CORPORATE LEGAL COUNSEL. DRAFT 2 OF THE RETURNS IS REVIEWED BY THE EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER. ALL COMPENSATION DISCLOSURES ARE REVIEWED BY THE DIRECTOR, COMPENSATION - HUMAN RESOURCES. DRAFT 3 OF THE RETURNS IS REVIEWED TOGETHER WITH THE PRESIDENT & CEO, THE EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER, THE VICE-PRESIDENT, FINANCE & CONTROLLER, AND THE ADMINISTRATOR, TAX. FINAL RETURNS ARE REVIEWED WITH BOTH THE LEHIGH VALLEY HOSPITAL-POCONO FINANCE COMMITTEE AND THE LVHN BOARD LEADERSHIP GROUP (THE BOARD CHAIR AND THREE VICE CHAIRS). COPIES OF ALL 990'S ARE PROVIDED TO THE FULL BOARD PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C IN JANUARY 2016, LVHN IMPLEMENTED AN ELECTRONIC TOOL DESIGNED TO SEND NOTIFICATIONS AND TRACK DISCLOSURES REPORTED ON CONFLICT OF INTEREST QUESTIONNAIRES. THE NETWORK ALSO EXPANDED THE SCOPE OF THE CONFLICT OF INTEREST OR COMMITMENT POLICY, SUCH THAT ADDITIONAL COLLEAGUES ARE NOW REQUIRED TO COMPLETE A QUESTIONNAIRE EACH YEAR. PRIOR TO JANUARY, THE VP, INTERNAL AUDIT AND COMPLIANCE SERVICES ISSUED A NOTICE TO BOARD MEMBERS AND MEMBERS OF THE SENIOR MANAGEMENT COUNCIL WHEN IT WAS TIME FOR THEM TO SUBMIT THEIR CONFLICT OF INTEREST QUESTIONNAIRES. THE VP ALSO INSTRUCTED MEMBERS OF THE SENIOR MANAGEMENT COUNCIL TO IDENTIFY AND REQUEST COMPLETED CONFLICT OF INTEREST QUESTIONNAIRES FROM INDIVIDUALS WHO HAD POTENTIAL CONFLICTS OF INTEREST AND TO PROVIDE HER WITH THE IDENTITY OF THOSE INDIVIDUALS. COMPLIANCE SERVICES TRACKED COMPLETION OF THE QUESTIONNAIRES. ALL PHYSICIANS ON LVHN'S MEDICAL STAFF ARE ALSO REQUIRED TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE ANNUALLY. MEDICAL STAFF SERVICES MONITORS THIS PROCESS TO ENSURE THAT ALL PHYSICIANS COMPLY. POTENTIAL CONFLICTS ARE MANAGED BY THE LVHN CONFLICT OF INTEREST COMMITTEE AND/OR BY THE BOARD OF TRUSTEES, DEPENDING ON WHOSE INTEREST(S) POSE THE CONFLICT AND THE NATURE OF THE CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 LEHIGH VALLEY HEALTH NETWORK 2024 EXECUTIVE COMPENSATION REVIEW IN COMPLIANCE WITH THE REBUTTABLE PRESUMPTION OF REASONABLENESS PROCESS OUTLINED IN THE INTERMEDIATE SANCTIONS REGULATIONS (ISSUED UNDER SECTION 4958 OF THE INTERNAL REVENUE CODE); SULLIVAN COTTER AND ASSOCIATES, INC. (SULLIVAN COTTER) QUALIFIES AS AN INDEPENDENT EXECUTIVE COMPENSATION EXPERT, SPECIALIZING IN THE HEALTH CARE INDUSTRY. SULLIVAN COTTER PROVIDES ADVICE TO THE LEHIGH VALLEY HEALTH NETWORK EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES TO SUPPORT ITS ATTAINMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTIONS REGULATIONS. THEY ALSO SUPPORT THE COMMITTEE IN ENSURING THAT THE LVHN EXECUTIVE COMPENSATION PROGRAM IS COMPETITIVE AND ALIGNED WITH THE ORGANIZATION'S EXECUTIVE COMPENSATION PHILOSOPHY. CHIEF EXECUTIVE OFFICER TOTAL COMPENSATION REVIEW: PROGRAM ANALYSIS: ANALYZE THE MARKET POSITION OF TOTAL COMPENSATION (BASE SALARY, INCENTIVE, BENEFITS, AND PERQUISITES) FOR LVHN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER (CEO) IN RELATION TO CEO MARKET DATA OBTAINED FOR A DEFINED PEER GROUP OF COMPARABLE HEALTH SYSTEMS. THIS INCLUDES THE PREPARATION OF TALLY SHEETS FOR THE PRESIDENT AND CEO AS WELL AS AN ANALYSIS OF FORM 990 COMPENSATION DATA. THEY ASSESS THE ALIGNMENT OF THE PRESIDENT AND CEO'S COMPENSATION WITH LVHN'S COMPENSATION PHILOSOPHY AND NOTE THE IMPLICATIONS OF THE REVIEW. SULLIVAN COTTER'S ANALYSES AND FINDINGS ARE SUMMARIZED IN A REPORT TO THE COMMITTEE THAT PROVIDES A REASONABLENESS OPINION FOR THE INTERMEDIATE SANCTIONS COMPLIANCE. THE REPORT WAS PROVIDED BY SULLIVAN COTTER AT THE JULY 19, 2023 EXECUTIVE COMPENSATION COMMITTEE MEETING. CEO COUNCIL EXECUTIVE TOTAL COMPENSATION REVIEW: PROGRAM ANALYSIS: ANALYZE THE MARKET POSITION OF TOTAL COMPENSATION (SALARIES, INCENTIVES, BENEFITS, AND PERQUISITES) FOR LVHN'S CEO COUNCIL EXECUTIVES (APPROXIMATELY 10 TOTAL POSITIONS) IN RELATION TO COMPARABLE POSITIONS IN PEER ORGANIZATIONS. THIS INCLUDES THE PREPARATION OF TALLY SHEETS FOR EACH INDIVIDUAL. SULLIVAN COTTER'S ANALYSES AND FINDINGS ARE SUMMARIZED IN A REPORT TO THE COMMITTEE THAT ALSO PROVIDES AN OPINION OF REASONABLENESS FOR INTERMEDIATE SANCTIONS COMPLIANCE. THE REPORT WAS PROVIDED BY SULLIVAN COTTER AT THE JULY 19, 2023 EXECUTIVE COMPENSATION COMMITTEE MEETING. SUMMARY OF METHODOLOGY TO CONDUCT THIS ANALYSIS, SULLIVAN COTTER: COLLECTED BACKGROUND INFORMATION REGARDING LVHN'S OPERATIONS, STRUCTURE, SIZE AND SCOPE, AS WELL AS EACH POSITION'S DUTIES. COMPILED MARKET DATA FOR CEO COUNCIL EXECUTIVES CONSISTENT WITH THE EXECUTIVE COMPENSATION PHILOSOPHY APPROVED BY THE COMMITTEE DURING ITS SEPTEMBER 18, 2023 MEETING: THE MARKET DATA USED FOR LVHN SYSTEM EXECUTIVES IN THIS ASSESSMENT ARE AN EQUALLY WEIGHTED BLEND OF: (1) LVHN'S COMMITTEE-APPROVED PEER GROUP OF 25 NOT-FOR-PROFIT HEALTH SYSTEMS LOCATED IN THE NORTHEAST (EXCLUDING NEW YORK CITY) WITH NET OPERATING REVENUES BETWEEN $2.1 BILLION AND $9.3 BILLION (MEDIAN OF $3.8 BILLION); AND (2) NATIONAL DATA REFLECTING ORGANIZATIONS OF SIMILAR SCOPE AND SIZE TO LVHN. PEER GROUP AND NATIONAL MARKET DATA WERE ABSTRACTED FROM SULLIVAN COTTER'S 2022 SURVEY OF MANAGER AND EXECUTIVE COMPENSATION IN HOSPITALS AND HEALTH SYSTEMS, AS WELL AS OTHER PUBLISHED COMPENSATION SURVEYS REFLECTING PAY AT COMPARABLY SIZED ORGANIZATIONS, WHICH INCLUDED NATIONAL HOSPITALS AND NATIONAL MEDICAL GROUPS. COMPILED MARKET DATA FOR THE LVHN CLINICAL CHAIRS PREPARED BY THE ASSOCIATION OF AMERICAN MEDICAL COLLEGES (AAMC) FOR THE CHAIRS OF CLINICAL DEPARTMENTS IN MEDICAL SCHOOLS, LVHN'S TRADITIONAL COMPARATOR GROUP FOR THESE JOBS. ADJUSTED THE MARKET DATA TO AN EFFECTIVE DATE OF JANUARY 1, 2024 AT AN ANNUALIZED RATE OF 3.0% BASED ON SALARY INCREASE TRENDS. COMPARED EACH COMPONENT OF LVHN'S BENEFIT PROGRAM AGAINST TYPICAL MARKET BENEFIT PRACTICES IN HEALTH SYSTEMS AND HOSPITALS BASED ON MULTIPLE PUBLISHED SURVEYS, SUPPLEMENTED BY SULLIVAN COTTER'S PROPRIETARY DATA AND EXPERIENCE. DEVELOPED MARKET TOTAL COMPENSATION DATA BY COMBINING MARKET TCC WITH TYPICAL MARKET BENEFIT COSTS. COMPARED LVHN'S TC TO MARKET RATES AND ASSESSED OVERALL POSITIONING. FOR PHYSICIAN EXECUTIVES HAVING BOTH CLINICAL AND ADMINISTRATIVE ROLES, RELEVANT MARKET DATA WERE COLLECTED BASED ON FTE ALLOCATION. SULLIVAN COTTER HAS NOT COMPLETED AN ASSESSMENT OF THE PHYSICIANS' PRODUCTIVITY OR THE FAIR MARKET VALUE (FMV) OF THEIR CLINICAL COMPENSATION, AS LVHN HAS ADVISED THAT SUCH AMOUNTS ARE APPROPRIATE AND WITHIN FMV. SULLIVAN COTTER USED THE FOLLOWING METHODOLOGY TO ASSESS THE COMPETITIVENESS AND REASONABLENESS OF LVHN'S EXECUTIVE TOTAL COMPENSATION LEVELS: COLLECTED BACKGROUND INFORMATION REGARDING LVHN'S OPERATIONS, STRUCTURE, SIZE AND SCOPE. COLLECTED INFORMATION ON EACH CEO COUNCIL EXECUTIVE MEMBER'S CURRENT COMPENSATION. DATA COLLECTED INCLUDE BASE SALARIES, ANNUAL INCENTIVE OPPORTUNITY LEVELS (TARGET AND MAXIMUM), ACTUAL ANNUAL INCENTIVE PAYOUT AMOUNTS, ANNUAL COSTS OF ALL STANDARD AND SUPPLEMENTAL BENEFITS AND ANNUAL COST AND DESCRIPTION OF EXECUTIVE PERQUISITES. REVIEWED JOB DESCRIPTIONS AND ORGANIZATIONAL CHARTS TO IDENTIFY EACH POSITION'S FUNCTIONAL RESPONSIBILITIES AND REPORTING RELATIONSHIPS. SELECTED THE APPROPRIATE BENCHMARK POSITION MATCH FOR EACH POSITION AND APPLIED PREMIUMS/DISCOUNTS TO THE MARKET DATA IN INSTANCES WHERE LVHN'S JOB DUTIES DIFFER MATERIALLY FROM BENCHMARK POSITION MATCHES. POSITION MATCHES AND MARKET ADJUSTMENTS WERE REVIEWED WITH LVHN'S SENIOR VICE PRESIDENT, HUMAN RESOURCES AND COMPENSATION STAFF. LVHN'S PROJECTED FY2023 NET REVENUES AND PHYSICIAN FTE'S WERE USED AS THE SCOPE SIZE FOR EACH ENTITY. FORM 990, PART VI, SECTION C, LINE 18 ANOTHER'S WEBSITE - GUIDESTAR. UPON REQUEST - HARD COPIES WITH SENIOR MANAGEMENT AND MARKETING DEPARTMENT. 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 ORGANIZATION'S ANNUAL PUBLIC MEETING. IN ADDITION, IT IS DISTRIBUTED VIA MAIL TO MEMBERS OF THE COMMUNITY. THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART V, LINE 2 THE WAGES REPORTED ON THIS RETURN ARE WAGES PAID TO EMPLOYEES OF POCONO HEALTH FOUNDATION BY RELATED ORGANIZATIONS. THE RELATED ORGANIZATIONS HAVE FILED THE APPROPRIATE PAYROLL TAX RETURNS. FAMILY CARE CENTERS INC PO BOX 4000 ALLENTOWN PA 181054000 232349341 PHYSICIAN PRACTICE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY PHYSICIAN GROUP 0 HAZLETON HEALTH & WELLNESS CENTER PO BOX 4000 ALLENTOWN PA 181054000 232580968 STAFFING SERVICES PA 501(C)(3) LINE 12B, II LEHIGH VALLEY HEALTH NETWORK 0 HAZLETON PROFESSIONAL SERVICES PO BOX 4000 ALLENTOWN PA 181054000 205880364 PHYSICIAN PRACTICE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY PHYSICIAN GROUP 0 HAZLETON SURGICAL ALLIANCE (FINAL 12-31-2023) PO BOX 4000 ALLENTOWN PA 181054000 202038456 SURGICAL SERVICES PA 501(C)(3) LINE 3 LEHIGH VALLEY HOSPITAL - HAZLETON 0 LEHIGH VALLEY HEALTH NETWORK PO BOX 4000 ALLENTOWN PA 181054000 222458317 PARENT COMPANY PA 501(C)(3) LINE 12C, III-FI N/A 0 LEHIGH VALLEY HEALTH NETWORK EMERGENCY MEDICAL SERVICES PO BOX 4000 ALLENTOWN PA 181054000 232532377 AMBULATORY MEDICAL SERVICES PA 501(C)(3) LINE 10 LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY HEALTH NETWORK REALTY HOLDING CO (FINAL 12-31-2023) PO BOX 4000 ALLENTOWN PA 181054000 232586770 REAL ESTATE HOLDING CO. PA 501(C)(2) LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY HOSPITAL PO BOX 4000 ALLENTOWN PA 181054000 231689692 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY HOSPITAL - HAZLETON PO BOX 4000 ALLENTOWN PA 181054000 232421970 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY HOSPITAL - POCONO PO BOX 4000 ALLENTOWN PA 181054000 240795623 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY HOSPITAL - SCHUYLKILL PO BOX 4000 ALLENTOWN PA 181054000 231352202 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY PHYSICIAN GROUP PO BOX 4000 ALLENTOWN PA 181054000 232700908 PHYSICIAN PRACTICE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 LEONARD PARKER POOL INSTITUTE FOR HEALTH PO BOX 4000 ALLENTOWN PA 181054000 851211082 SUPPORT RELATED ORGANIZATIONS PA 501(C)(3) LINE 3 LEHIGH VALLEY HOSPITAL 0 MUHLENBERG REALTY CORPORATION PO BOX 4000 ALLENTOWN PA 181054000 232245513 REAL ESTATE RENTALS PA 501(C)(3) LINE 12C, III-FI LEHIGH VALLEY HEALTH NETWORK 0 POCONO AMBULATORY SERVICES INC (FINAL 12-31-2023) PO BOX 4000 ALLENTOWN PA 181054000 232611474 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HOSPITAL - POCONO 0 POCONO HEALTH SYSTEM (FINAL 12-31-2023) PO BOX 4000 ALLENTOWN PA 181054000 232336285 SUPPORT RELATED ORGANIZATIONS PA 501(C)(3) LINE 12B, II LEHIGH VALLEY HEALTH NETWORK 0 POCONO HEALTH SYSTEM MEDICAL PROFESSIONAL LIABILITY SELF-INSURANCE TRUST PO BOX 4000 ALLENTOWN PA 181054000 206560453 SELF-INSURANCE PA 501(C)(3) LINE 12A, I LEHIGH VALLEY HOSPITAL - POCONO 0 POCONO VNA-HOSPICE PO BOX 4000 ALLENTOWN PA 181054000 232535297 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 10 LEHIGH VALLEY HOSPITAL - POCONO 0 SCHUYLKILL HEALTH SYSTEM MEDICAL GROUP INC PO BOX 4000 ALLENTOWN PA 181054000 232866006 PHYSICIAN PRACTICE ORGANIZATION PA 501(C)(3) LINE 10 LEHIGH VALLEY PHYSICIAN GROUP 0 CHP-LVHN JV LLC 1509 BANKS STREET HOUSTON TX 770066019 863918453 HOSPITAL OPERATIONS DE N/A 0 0 EASTERN PENNSYLVANIA ENDOSCOPY CENTER LLC 1501 N CEDAR CREST BLVD STE 100 ALLENTOWN PA 181042309 842257961 ENDOSCOPY SERVICES PA N/A 0 0 FAIRGROUNDS MEDICAL CENTER 400 N 17TH STREET STE 102 ALLENTOWN PA 181045052 232530427 REAL ESTATE RENTALS PA N/A 0 0 HAZLETON SURGERY CENTER LLC 17480 DALLAS PARKWAY STE 210 DALLAS TX 752877304 201232531 SURGICAL SERVICES PA N/A 0 0 HEALTH NETWORK LABORATORIES LLC (FINAL 03-31-2024) 794 ROBLE ROAD ALLENTOWN PA 181099110 232932802 LABORATORY SERVICES PA N/A 0 0 HEALTH NETWORK LABORATORIES LLC 794 ROBLE ROAD ALLENTOWN PA 181099110 232948774 LABORATORY SERVICES PA N/A 0 0 LEHIGH VALLEY IMAGING LLC 1247 S CEDAR CREST BLVD STE 105 ALLENTOWN PA 181036202 464551937 IMAGING SERVICES PA N/A 0 0 LVHN RECIPROCAL RISK RETENTION GROUP 151 MEETING STREET STE 301 CHARLESTON SC 294012238 200037118 INSURANCE SERVICES PA N/A 0 0 MONROE ENDOSCOPY CENTER LLC 1501 N CEDAR CREST BLVD STE 100 ALLENTOWN PA 181042309 884118030 ENDOSCOPY SERVICES PA N/A 0 0 NAZARETH ENDOSCOPY CENTER LLC 1501 N CEDAR CREST BLVD STE 110 ALLENTOWN PA 181042309 824072967 ENDOSCOPY SERVICES PA N/A 0 0 POCONO AMBULATORY SURGERY CENTER LTD 1 STORM STREET STROUDSBURG PA 183602406 232611442 SURGICAL SERVICES PA N/A 0 0 POCONO HEALTH SYSTEM INVESTMENT COLLABORATIVE LP PO BOX 4000 ALLENTOWN PA 181054000 472125419 INVESTMENTS PA N/A 0 0 SCHUYLKILL HEALTH SYSTEM MEDICAL MALL LP PO BOX 4000 ALLENTOWN PA 181054000 232514813 REAL ESTATE RENTALS PA N/A 0 0 UHS-LVHN JV LLC 367 S GULPH ROAD KING OF PRUSSIA PA 194063121 871641782 HOSPITAL OPERATIONS PA N/A 0 0 CARBON SCHUYLKILL ENDOSCOPY CENTER INC 400 S NINTH STREET LEHIGHTON PA 182351812 731662391 ENDOSCOPY SERVICES PA N/A S 0 LEHIGH VALLEY ANESTHESIA SERVICES PC (FINAL 09-30-2023) PO BOX 4000 ALLENTOWN PA 181054000 233906125 ANESTHESIA SERVICES PA N/A C 0 LEHIGH VALLEY HEALTH SERVICES INC PO BOX 4000 ALLENTOWN PA 181054000 232263665 HEALTH CARE RELATED SERVICES PA N/A C 0 LEHIGH VALLEY PHYSICIAN HOSPITAL ORGANIZATION INC 1605 N CEDAR CREST BLVD STE 411 ALLENTOWN PA 181042323 232750430 HEALTH CARE RELATED SERVICES PA N/A C 0 POPULYTICS INC PO BOX 4000 ALLENTOWN PA 181054000 232539282 HEALTH CARE RELATED SERVICES PA N/A C 0 SCHUYLKILL HEALTH SYSTEM DEVELOPMENT CORPORATION (FINAL 03-31-2024) PO BOX 4000 ALLENTOWN PA 181054000 232432417 REAL ESTATE RENTALS PA N/A C 0 SCHUYLKILL MEDICAL PLAZA - CONDOMINIUM ASSOCIATION PO BOX 4000 ALLENTOWN PA 181054000 232931821 CONDOMINIUM ASSOCIATION PA N/A C 0 SPECTRUM HEALTH VENTURES INC PO BOX 4000 ALLENTOWN PA 181054000 232391479 HEALTH CARE RELATED SERVICES PA N/A C 0 0 1 1 0 0 0 0 0 0 0 0 1 0 1 1 1 1 0 0