2024-05-07T14:29:20-05:00 2023-06-30 WithumSmithBrown PC 1835 MARKET STREET SUITE 1710 PHILADELPHIA PA 19103 990 2022-07-01 861248931 ST LUKE'S HOSPITAL - CARBON CAMPUS % SCOTT R WOLFE STLU 4845264000 1110 ST LUKES WAY ALLENTOWN PA 18109 SCOTT R WOLFE SVP FINANCE & CFO 4845264000 2024-05-15 true SCOTT R WOLFE 000000000 Scott J Mariani P00642486 2155462140 2 2022 2023-04-26 12:10:37Z SCOTT R WOLFE 1110 ST LUKES WAY ALLENTOWN PA 18109 87251232 false X WWW.SLHN.ORG X 2020 PA TO PROVIDE COMPASSIONATE, EXCELLENT QUALITY AND COST EFFECTIVE HEALTHCARE TO THE RESIDENTS OF THE COMMUNITIES WE SERVE IN A NON-DISCRIMINATORY MANNER. 15 9 0 48 0 0 442534 233504 42816092 86747858 569 -42230 33294 312100 43292489 87251232 1358627 26243 0 0 0 0 0 0 0 47442157 85406085 48800784 85432328 -5508295 1818904 104076778 103553222 111395028 108904950 -7318250 -5351728 X THE MISSION OF THE ORGANIZATION IS TO PROVIDE COMPASSIONATE, EXCELLENT QUALITY AND COST EFFECTIVE HEALTHCARE TO THE RESIDENTS OF THE COMMUNITIES WE SERVE REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. THE NETWORK'S MISSION IS TO CARE FOR THE SICK AND INJURED REGARDLESS OF THEIR ABILITY TO PAY, IMPROVE OUR COMMUNITIES' OVERALL HEALTH, AND EDUCATE OUR HEALTH CARE PROFESSIONALS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. false false 79580397 26243 86747858 EXPENSES INCURRED IN PROVIDING EMERGENCY AND MEDICALLY NECESSARY SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT (STATEMENT OF PROGRAM SERVICES) WHICH INCLUDES DETAILED INFORMATION REGARDING THE VARIOUS SERVICES PROVIDED BY THIS ORGANIZATION. 79580397 true true false true false false false false false true true false false true true false false true false false false false false false false false true true false true true false false false false false false false false false false false false false true false false false true X 0 0 0 false false false false false true true false false false false false false X 15 9 false true false false true true true true true false false true true true true true true true true false X SCOTT R WOLFE 4845264000 1110 ST LUKES WAY ALLENTOWN PA 18109 X Robert Grob DO Secretary/Treasurer-Trustee 55.0 0.0 X X 0 755627 52860 Francine M Botek Trustee 55.0 0.0 X 0 533024 89688 William M Markson MD Trustee- VP Medical Affairs 55.0 0.0 X X 0 531507 30496 Nicholas M Varvarelis DO Trustee 55.0 0.0 X 0 502669 39120 Honorable Steven Serfass Chairman - Trustee 1.0 0.0 X X 0 0 0 Barbara Green Vice Chair - Trustee 1.0 0.0 X X 0 0 0 Aldo Carmona MD Trustee 55.0 0.0 X 0 0 0 William H Fegley Jr Trustee 1.0 0.0 X 0 0 0 Sky Fogal Trustee 1.0 0.0 X 0 0 0 Sara J Keiser Trustee 1.0 0.0 X 0 0 0 William Kissner Trustee 1.0 0.0 X 0 0 0 John L Nespoli Trustee-PRES SL CARBON CAMPUS 55.0 0.0 X X 0 0 0 Patrick Reilly Trustee 1.0 0.0 X 0 0 0 Shelba Scheffner Trustee 1.0 0.0 X 0 0 0 James Schober III Director 1.0 0.0 X 0 0 0 Scott R Wolfe SVP Finance & CFO 55.0 0.0 X 0 0 0 0 2322827 212164 0 false true false 0 233504 233504 NET PATIENT SERVICE REVENUE 622110 86447897 86447897 OTHER HEALTHCARE RELATED REVENUE 622110 299961 299961 86747858 -42230 -42230 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 DIETARY REVENUE 722310 312100 312100 312100 87251232 86747858 269870 19518 19518 6725 6725 0 0 0 0 0 0 0 0 87412 80974 6438 0 0 0 0 0 6750 6253 497 36433 33750 2683 4755240 4404996 350244 58602 54286 4316 0 1262911 1169892 93019 11901 11024 877 0 4746 4396 350 2122653 1966311 156342 0 8673726 8034869 638857 310824 287930 22894 ALLOCATION ON PERSONNEL 40729971 37730036 2999935 0 MEDICAL SUPPLIES 8928825 8271179 657646 0 SLPG RELATED 501(C)(3) EXP 5954742 5954742 0 0 PURCHASED SERVICES 5213523 4829525 383998 0 7247826 6713991 533835 85432328 79580397 5851931 0 1436297 2249480 64230 130818 0 0 16640992 1743040 0 0 0 0 0 0 1144615 1207715 206508 279080 99443735 13419473 83558580 86024262 0 0 0 0 519415 1204374 0 0 506141 10714453 104076778 103553222 2737609 2322107 0 0 0 0 0 0 0 0 0 0 97842030 104752311 0 0 10815389 1830532 111395028 108904950 X -7431122 -5572816 112872 221088 -7318250 -5351728 104076778 103553222 X 1818904 36166 111452 X X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false true false true false SCHEDULE C, PART II-B; QUESTION 1 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT HOSPITAL ORGANIZATION, PAYS ALL LOBBYING EXPENDITURES ON BEHALF OF ALL AFFILIATES WITHIN THE NETWORK AND ALLOCATES A PERCENTAGE OF THESE EXPENDITURES TO VARIOUS AFFILIATES. THESE LOBBYING EXPENDITURES INCLUDE (1) PAYMENT TO AN OUTSIDE INDEPENDENT FIRM, (2) AN ALLOCATED PORTION OF THE DUES PAID TO THE HOSPITAL AND HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA AND (3) A PERCENTAGE OF TOTAL COMPENSATION PAID TO THE SYSTEM'S SENIOR VICE PRESIDENT/GENERAL COUNSEL TO REPRESENT TIME SPENT ADDRESSING FEDERAL AND STATE HEALTHCARE MATTERS. THE AMOUNT ALLOCATED TO THIS ORGANIZATION ATTRIBUTABLE TO LOBBYING ACTIVITY FOR THE YEAR ENDED JUNE 30, 2023 IS $6,360. 112872 196342 88126 221088 0 356684 243812 112872 1.00000 false false 61452872 6584062 54868810 25638885 6835411 18803474 12351978 12351978 86024262 DUE FROM AFFILIATES 9851338 OTHER ACCOUNTS RECEIVABLE 863115 10714453 0 ESTIMATED THIRD-PARTY SETTLEMENTS 1807889 OTHER LIABILITIES 22643 1830532 SCHEDULE D, PART V; QUESTION 4 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTING ("CPA") FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF THE NETWORK AND ITS CONTROLLED AFFILIATES FOR THE YEARS ENDED JUNE 30, 2023 AND JUNE 30, 2022; RESPECTIVELY AND ISSUED A CONSOLIDATED FINANCIAL STATEMENT. THE FOLLOWING FOOTNOTE IS INCLUDED IN THE NETWORK'S AUDITED CONSOLIDATED FINANCIAL STATEMENTS THAT ADDRESSES THE NETWORK'S ENDOWMENT FUNDS: THE NETWORK'S ENDOWMENT CONSISTS OF APPROXIMATELY $67,838,723 INDIVIDUAL DONOR RESTRICTED ENDOWMENT FUNDS AND $0 BOARD-DESIGNATED ENDOWMENT FUNDS FOR A VARIETY OF PURPOSES PLUS THE FOLLOWING WHERE THE ASSETS HAVE BEEN DESIGNATED FOR ENDOWMENT: SPLIT INTEREST AGREEMENTS, AND OTHER NET ASSETS. THE ENDOWMENT INCLUDES BOTH DONOR-RESTRICTED ENDOWMENT FUNDS AND FUNDS DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS ENDOWMENTS. THE NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS INCLUDING FUNDS DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS ENDOWMENTS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR IMPOSED RESTRICTIONS. RETURN OBJECTIVES AND RISK PARAMETERS THE NETWORK HAS ADOPTED ENDOWMENT INVESTMENT AND SPENDING POLICIES THAT ATTEMPT TO PROVIDE A PREDICTABLE STREAM OF FUNDING TO PROGRAMS SUPPORTED BY ITS ENDOWMENT WHILE SEEKING TO MAINTAIN THE PURCHASING POWER OF ENDOWMENT ASSETS. UNDER THIS POLICY, THE RETURN OBJECTIVE FOR THE ENDOWMENT ASSETS, MEASURED OVER A FULL MARKET CYCLE, SHALL BE TO MAXIMIZE THE RETURN AGAINST A BLENDED INDEX, BASED ON THE ENDOWMENT'S TARGET ALLOCATION APPLIED TO THE APPROPRIATE INDIVIDUAL BENCHMARKS. THE NETWORK EXPECTS ITS ENDOWMENT FUNDS OVER TIME, TO PROVIDE AN AVERAGE RATE OF RETURN APPROXIMATING THE S&P 500 STOCK INDEX (DOMESTIC PORTION), MSCI EAFE INDEX (INTERNATIONAL PORTION) AND LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE INDEX (BOND PORTION). ACTUAL RETURNS IN ANY GIVEN YEAR MAY VARY FROM THE INDEX RETURN AMOUNTS. STRATEGIES EMPLOYED FOR ACHIEVING INVESTMENT OBJECTIVES TO ACHIEVE ITS LONG-TERM RATE OF RETURN OBJECTIVES, THE NETWORK RELIES ON A TOTAL RETURN STRATEGY IN WHICH INVESTMENT RETURNS ARE ACHIEVED THROUGH BOTH CAPITAL APPRECIATION (REALIZED AND UNREALIZED GAINS) AND CURRENT YIELD (INTEREST AND DIVIDENDS). THE NETWORK TARGETS A DIVERSIFIED ASSET ALLOCATION THAT PLACES GREATER EMPHASIS ON EQUITY-BASED INVESTMENTS TO ACHIEVE ITS LONG-TERM OBJECTIVES WITHIN PRUDENT RISK CONSTRAINTS. ENDOWMENT SPENDING ALLOCATION AND RELATIONSHIP OF SPENDING POLICY TO INVESTMENT OBJECTIVES THE BOARD OF TRUSTEES OF THE NETWORK DETERMINES THE METHOD TO BE USED TO APPROPRIATE ENDOWMENT FUNDS FOR EXPENDITURE. CALCULATIONS ARE PERFORMED FOR INDIVIDUAL ENDOWMENT FUNDS AT A RATE OF 4.5% OF A THREE-YEAR MOVING AVERAGE MARKET VALUE WITH A MINIMUM INCREASE OF 0% AND A MAXIMUM INCREASE OF 10% PER YEAR OVER THE PREVIOUS YEAR'S SPENDING AMOUNT. THE TOTAL IS REDUCED BY THE INCOME DISTRIBUTED FROM THE ENDOWMENT FUND IN ACCORDANCE WITH THE PREFERENCES/RESTRICTIONS MADE BY THE DONORS. THE CORRESPONDING CALCULATED SPENDING ALLOCATIONS ARE DISTRIBUTED ANNUALLY BY JUNE 30. IN ESTABLISHING THIS POLICY, THE BOARD CONSIDERED THE EXPECTED LONG TERM RATE OF RETURN ON ITS ENDOWMENT. ACCORDINGLY, OVER THE LONG TERM, THE NETWORK EXPECTS THE CURRENT SPENDING POLICY TO ALLOW ITS ENDOWMENT TO GROW AT AN AVERAGE OF 8% PERCENT ANNUALLY, CONSISTENT WITH ITS INTENTION TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS AS WELL AS TO PROVIDE ADDITIONAL REAL GROWTH THROUGH NEW GIFTS. true true X true X 300. true X 301. true true true false false 564556 564556 0.00660 15256008 6759226 8496782 0.09950 15820564 6759226 9061338 0.10610 1689522 97968 1591554 0.01860 1947202 39887 1907315 0.02230 27579 27579 0.00030 3664303 137855 3526448 0.04120 19484867 6897081 12587786 0.14730 true 8895434 1086950 22718461 22922454 -203993 X true true 1 1 ST LUKE'S HOSPITAL CARBON CAMPUS 500 ST LUKES DRIVE LEHIGHTON PA 18235 WWW.SLHN.ORG 26080101 X X X ST LUKE'S HOSPITAL CARBON CAMPUS 1 false true false true true true true true false true X 300. 301. X X X true true X X X true X WWW.SLHN.ORG X WWW.SLHN.ORG X WWW.SLHN.ORG X X X X X X X true X false X X X X true X false false SCHEDULE H, PART V, SECTION B, QUESTIONS 2 & 3 ST LUKE'S HOSPITAL - CARBON CAMPUS WAS FORMED AS A NON-PROFIT CORPORATION ON DECEMBER 18, 2020 UNDER THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA. THE HOSPITAL FACILITY OFFICIALLY OPENED ITS DOORS AND BEGAN OPERATIONS ON NOVEMBER 20, 2021. AS A NEW HOSPITAL FACILITY, THE ORGANIZATION WAS NOT REQUIRED TO COMPLETE A COMMUNITY HEALTH NEEDS ASSESSMENT UNTIL JUNE 30, 2023. HOWEVER, THIS ORGANIZATION COMPLETED ITS FIRST COMMUNITY HEALTH NEEDS ASSESSMENT FOR THE FISCAL YEAR ENDED JUNE 30, 2022. SCHEDULE H, PART V, SECTION B, QUESTION 3I THIS ORGANIZATION'S INITIAL COMMUNITY HEALTH NEEDS ASSESSMENT ("CHNA") WAS COMPLETED AND MADE WIDELY AVAILABLE AS OF JUNE 30, 2022. SINCE THIS WAS THE HOSPITAL FACILITY'S FIRST CHNA, THE IMPACT OF ACTIONS TAKEN TO ADDRESS THE SIGNIFICANT HEALTH NEEDS IDENTIFIED IN THE HOSPITAL FACILITY'S PRIOR CHNA IS NOT APPLICABLE. SCHEDULE H, PART V, SECTION B, QUESTION 5 THE COMMUNITY HEALTH NEEDS ASSESSMENT ("CHNA") FOR ST. LUKE'S HOSPITAL - CARBON CAMPUS WAS COMPRISED OF PRIMARY AND SECONDARY DATA. THE PRIMARY DATA WAS COLLECTED THROUGH KEY INFORMANT INTERVIEWS AND COMMUNITY HEALTH SURVEYS, WHERE 11,523 SURVEYS WERE CONDUCTED WITHIN THE NETWORK'S FOURTEEN CAMPUS GEOGRAPHIC REGIONS. PRIMARY DATA WAS ALSO COLLECTED THROUGH CAMPUS SPECIFIC KEY STAKEHOLDER FOCUS GROUPS, WHERE THE MAIN PRIORITY HEALTH NEEDS WERE IDENTIFIED. SECONDARY DATA INCLUDED THE USE OF COUNTY LEVEL, STATE LEVEL, AND NATIONAL LEVEL DATA OBTAINED VIA THE U.S. CENSUS, THE ROBERT WOOD JOHNSON FOUNDATION, VITAL STATISTICS, COMMUNITY COMMONS, THE AMERICAN COMMUNITY SURVEY, U.S. DEPARTMENT OF LABOR, THE BEHAVIORAL RISK FACTOR SURVEILLANCE SYSTEM AS WELL AS OTHER DATA SOURCES, WHICH IS FURTHER FOOTNOTED WITHIN EACH CHNA. THE NEEDS IDENTIFIED WITHIN EACH FOCUS GROUP WAS SUPPLEMENTED BY SURVEY DATA AND SECONDARY DATA IN ORDER TO PROVIDE A MORE COMPREHENSIVE PICTURE OF THE NEEDS IN EACH COMMUNITY AND THE OUTSIDE FACTORS AFFECTING THESE HEALTH ISSUES. THROUGH REVIEW OF THE PRIMARY AND SECONDARY DATA, THE NETWORK WAS ABLE TO CATEGORIZE THE IDENTIFIED HEALTH NEEDS INTO FOUR MAJOR CATEGORIES FOR THE JUNE 30, 2022 - JUNE 30, 2025, CHNA CYCLE. SCHEDULE H, PART V, SECTION B, QUESTIONS 6A & 6B THE ORGANIZATION'S CHNA WAS CONDUCTED BY ST. LUKE'S HEALTH NETWORK. THE NETWORK CONDUCTED A COLLABORATIVE CHNA FOR ITS WESTERN RURAL CAMPUSES WHICH INCLUDED: ST. LUKE'S MINERS, ST. LUKE'S LEHIGHTON CAMPUS, ST. LUKE'S CARBON CAMPUS, AND GEISINGER ST. LUKE'S HOSPITAL. IN ADDITION, THE ORGANIZATION'S CHNA IS THE RESULT OF A COLLABORATIVE EFFORT WITH VARIOUS COMMUNITY PARTNERS WHO WORKED TOGETHER TO IDENTIFY THE MOST-PRESSING HEALTHCARE NEEDS IN THE COMMUNITY. AS OUTLINED IN THE APPENDIX OF THE ORGANIZATION'S CHNA THE ORGANIZATION'S COMMUNITY PARTNERS INCLUDE THE FOLLOWING: - ABC TAMAQUA HI-RISE APARTMENTS - AMERICAN CANCER SOCIETY - AREA HEALTH EDUCATION CENTER, EAST CENTRAL AND NORTHEAST PA - BOROUGH OF TAMAQUA - CARBON COUNTY BOARD OF COMMISSIONERS - CARBON COUNTY COMMUNITY FOUNDATION - CARBON - MONROE - PIKE MENTAL HEALTH AND DRUG AND ALCOHOL - CHILD DEVELOPMENT INC. HEAD START, SCHUYLKILL COUNTY - DOMESTIC VIOLENCE SERVICE CENTER SERVING CARBON COUNTY - FAMILY PROMISE OF CARBON COUNTY - FAITH FELLOWSHIP NETWORK AND INTERFAITH HEALTH NETWORK - PATHSTONE HEAD START - STAR COMMUNITY HEALTH - INDEPENDENT LIVING SERVICE - LANSFORD ALIVE - LANSFORD POLICE DEPARTMENT - LEHIGH CARBON COMMUNITY COLLEGE - MAJESTIC HOUSE APARTMENTS - NEW BEGINNINGS SOCIAL WORK - NEW LIFE ASSEMBLY OF GOD, TAMAQUA - NURSE FAMILY PARTNERSHIP - PANTHER VALLEY SCHOOL DISTRICT - PALMERTON, LEHIGHTON, JIM THORPE LIBRARIES - THE REDCO GROUP - SALVATION ARMY - SCHUYLKILL COMMUNITY ACTION - SCHUYLKILL COUNTY DRUG AND ALCOHOL PROGRAM - SCHUYLKILL COUNTY TRANSPORTATION AUTHORITY - SCHUYLKILL COUNTY VISION - SCHUYLKILL COUNTY HOUSING AUTHORITY - SCHUYLKILL WOMEN IN CRISIS - SHINE AFTER SCHOOL PROGRAM - CARBON COUNTY TRANSIT - SUMMIT HILL LIONS CLUB - TAMAQUA POLICE DEPARTMENT - TAMAQUA LIBRARY - TAMAQUA AREA ADULT DAY CARE CENTER - TAMAQUA AREA SCHOOL DISTRICT - TAMAQUA COMMUNITY ARTS CENTER - TAMAQUA YMCA - TURN TO US - UNITED WAY SCHUYLKILL COUNTY - UNITED WAY GREATER LEHIGH VALLEY INCLUDING CARBON COUNTY - CLINICAL OUTCOMES GROUP - BLUE MOUNTAIN, MAHONEY, SHENANDOAH SCHOOL DISTRICTS - PA CAREER LINK - SCHUYLKILL COUNTY VISION - SUICIDE PREVENTION TASK FORCE - SEXUAL ASSAULT RESOURCE AND COUNSELING CENTER (SARCC) - BEHAVIORAL HEALTH ASSOCIATES SCHEDULE H, PART V, SECTION B, QUESTION 7A THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK ("NETWORK"). DUE TO CHARACTER LIMITATIONS, THE WEBSITE LISTED IN SCHEDULE H, PART V, SECTION B, QUESTION 7A, IS THE HOME PAGE FOR THE SYSTEM. THE ORGANIZATION'S CHNA CAN BE ACCESSED AT THE FOLLOWING PAGE INCLUDED IN THE NETWORK'S WEBSITE: WWW.SLHN.ORG/COMMUNITY-HEALTH/COMMUNITY-HEALTH-NEEDS-ASSESSMENT/CAMPUS SCHEDULE H, PART V, SECTION B, QUESTION 10 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK ("NETWORK"). THE NETWORK CREATED A NETWORK WIDE JOINT IMPLEMENTATION STRATEGY TO ADDRESS ALL OF THE HEALTH NEEDS IDENTIFIED WITHIN EACH HOSPITAL FACILITY'S CHNA. DUE TO CHARACTER LIMITATIONS, THE WEBSITE LISTED IN SCHEDULE H, PART V, SECTION B, QUESTION 10, IS THE HOME PAGE FOR THE SYSTEM. THE NETWORK WIDE IMPLEMENTATION STRATEGY AN BE ACCESSED AT THE FOLLOWING PAGE INCLUDED IN THE NETWORK'S WEBSITE: HTTPS://WWW.SLHN.ORG/COMMUNITY-HEALTH/COMMUNITY-HEALTH-NEEDS-ASSESSMENT SCHEDULE H, PART V, SECTION B, QUESTION 11 THE ORGANIZATION'S CHNA WAS COMPLETED AND MADE WIDELY AVAILABLE PRIOR TO JUNE 30, 2022. THEREAFTER, A MULTI-DISCIPLINARY TEAM MET REGULARLY AND PARTICIPATED IN THE IMPLEMENTATION PLAN PROCESS. DURING THIS PROCESS AND THROUGH REVIEW OF THE PRIMARY AND SECONDARY DATA, THE ORGANIZATION WAS ABLE TO CATEGORIZE THE IDENTIFIED HEALTH NEEDS INTO THREE MAJOR CATEGORIES FOR THE 2022-2025 CHNA CYCLE. THESE PRIORITY HEALTH CATEGORIES INCLUDE: 1) IMPROVING ACCESS TO CARE/REDUCING HEALTH DISPARITIES 2) PROMOTING HEALTHY LIFESTYLES AND PREVENTING CHRONIC DISEASE 3) IMPROVING MENTAL/BEHAVIORAL HEALTH 4) COVID RESPONSE A NETWORK WIDE IMPLEMENTATION STRATEGY WAS CREATED TO ADDRESS THE THREE IDENTIFIED HEALTH PRIORITIES. THE IMPLEMENTATION STRATEGY WAS DEVELOPED TO CONTINUE ESTABLISHED EFFORTS AND FOSTER COMMUNITY COLLABORATION TO MEET THE IDENTIFIED HEALTH NEEDS. THROUGH FOUR NETWORK-WIDE INITIATIVES, THE NETWORK WIDE IMPLEMENTATION STRATEGY APPROACHES THE THREE HEALTH PRIORITY AREAS DETERMINED BY THE CHNA FROM THREE MAIN VANTAGES: 1) WELLNESS AND PREVENTION 2) CARE TRANSFORMATION 3) RESEARCH AND PARTNERSHIPS THESE PRIORITY HEALTH AREAS AND UNMET NEEDS IN THE IMPLEMENTATION PLAN ARE INTEGRAL TO OUR COMMUNITY BENEFIT STRATEGY. ST. LUKE'S LEADERS CONTINUE TO MONITOR NEW PROGRAM DEVELOPMENTS AND SERVICES IN ORDER TO MEET AND ADDRESS THESE NEEDS. PROGRAMMING TO ADDRESS THE NEEDS IDENTIFIED IN THE CHNA IS CONDUCTED IN PARTNERSHIP WITH OVER 200 ORGANIZATIONS NETWORK WIDE, A COMPREHENSIVE LIST OF PARTNERS CAN BE FOUND ON THE LAST PAGE OF EACH OF THE CAMPUS SPECIFIC CHNAS. THE ST. LUKE'S UNIVERSITY HEALTH NETWORK CHNA IMPLEMENTATION STRATEGY AS WELL AS SEPARATE HOSPITAL CAMPUS IMPLEMENTATION UPDATES CAN BE VIEWED ON THE ORGANIZATION'S WEBSITE. THE IMPLEMENTATION STRATEGIES AND IMPLEMENTATION UPDATES INCLUDE AND DESCRIBE VARIOUS INITIATIVES AND PLANS IN PLACE TO ADDRESS THE UNMET NEEDS DISCOVERED THROUGH THE ORGANIZATION'S CHNA PROCESS. ANNUAL IMPLEMENTATION PLAN UPDATE REPORTS DESCRIBE EFFORTS UNDERTAKEN BY THE NETWORK TO ADDRESS THE CHNA IDENTIFIED NEEDS. HOSPITALS ARE NOT REQUIRED TO, NOR CAN THEY MEET ALL OF THE UNMET NEEDS IN THEIR COMMUNITIES. ANY UNMET NEEDS NOT ADDRESSED BY THE ADOPTED IMPLEMENTATION PLAN ARE ALREADY BEING ADDRESSED IN THE SERVICE AREA BY THE HOSPITAL, OTHER HEALTHCARE PROVIDERS, GOVERNMENT, OR VARIOUS LOCAL NON-PROFIT ORGANIZATIONS IN THE COMMUNITY. SCHEDULE H, PART V, SECTION B, QUESTION 16 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK ("NETWORK"). DUE TO CHARACTER LIMITATIONS, THE WEBSITE LISTED IN SCHEDULE H, PART V, SECTION B, QUESTION 16, IS THE HOME PAGE FOR THE NETWORK. THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY, FINANCIAL ASSISTANCE APPLICATION AND PLAIN LANGUAGE SUMMARY ARE MADE WIDELY AVAILABLE ON THE ORGANIZATION'S WEBSITE. THESE DOCUMENTS CAN BE ACCESSED AT THE FOLLOWING PAGE INCLUDED IN THE NETWORK'S WEBSITE: WWW.SLHN.ORG/BILLPAY/POLICIES-AND-PROCEDURES/FINANCIAL-ASSISTANCE-POLICIES SCHEDULE H, PART V, SECTION B, QUESTION 16J OTHER MEASURES TO PUBLICIZE THE HOSPITAL'S FINANCIAL ASSISTANCE POLICY INCLUDE INDIVIDUAL FINANCIAL COUNSELING MEETINGS WITH PATIENTS WITHOUT HEALTH INSURANCE TO REVIEW THE FINANCIAL ASSISTANCE POLICY AND TO DISCUSS PAYMENT OPTIONS. SCHEDULE H, PART I, LINE 3C THE GRANTING OF FINANCIAL ASSISTANCE IS BASED UPON AN INDIVIDUALIZED DETERMINATION OF FINANCIAL NEED, AND DOES NOT TAKE INTO ACCOUNT AGE, GENDER, RACE, SOCIAL OR IMMIGRANT STATUS, SEXUAL ORIENTATION OR RELIGIOUS AFFILIATION. IN ADDITION TO THE FEDERAL POVERTY GUIDELINES ELIGIBILITY CRITERIA NOTED ELIGIBILITY FOR FINANCIAL ASSISTANCE WILL BE CONSIDERED FOR THOSE INDIVIDUALS WHO ARE UNINSURED, INELIGIBLE FOR ANY GOVERNMENT HEALTHCARE BENEFIT PROGRAM, AND THOSE WHO ARE UNABLE TO PAY FOR THEIR CARE, BASED UPON DETERMINATION OF FINANCIAL NEED IN ACCORDANCE WITH THE FINANCIAL ASSISTANCE POLICY. PATIENTS WHOSE FAMILY INCOME EXCEEDS 300% OF THE FPL MAY BE ELIGIBLE TO RECEIVE DISCOUNTED RATES ON A CASE-BY-CASE BASIS BASED ON THEIR SPECIFIC CIRCUMSTANCES, SUCH AS CATASTROPHIC ILLNESS OR MEDICAL INDIGENCE, AT THE DISCRETION OF ST. LUKE'S UNIVERSITY HEALTH NETWORK. THERE ARE INSTANCES WHEN A PATIENT APPEARS TO BE ELIGIBLE FOR FINANCIAL ASSISTANCE, BUT THERE IS NO FINANCIAL ASSISTANCE FORM ON FILE DUE TO LACK OF SUPPORTING DOCUMENTATION. OFTEN THERE IS ADEQUATE INFORMATION PROVIDED BY THE PATIENT OR OBTAINED THROUGH OTHER SOURCES, WHICH COULD PROVIDE SUFFICIENT EVIDENCE TO PROVIDE THE PATIENT WITH FINANCIAL ASSISTANCE. IN THE EVENT THERE IS NO EVIDENCE TO SUPPORT A PATIENT'S ELIGIBILITY FOR FINANCIAL ASSISTANCE, ST. LUKE'S UNIVERSITY HEALTH NETWORK MAY USE OUTSIDE AGENCIES IN DETERMINING ESTIMATED INCOME AMOUNTS FOR THE BASIS OF DETERMINING FINANCIAL ASSISTANCE ELIGIBILITY AND POTENTIAL DISCOUNT AMOUNTS. PRESUMPTIVE ELIGIBILITY MAY BE DETERMINED ON THE BASIS OF INDIVIDUAL LIFE CIRCUMSTANCE THAT MAY INCLUDE: - STATE-FUNDED PRESCRIPTION PROGRAMS; - HOMELESS OR RECEIVED CARE FROM A HOMELESS CLINIC; - PARTICIPATION IN WOMEN, INFANTS AND CHILDREN PROGRAMS (WIC); - FOOD STAMP ELIGIBILITY; - SUBSIDIZED SCHOOL LUNCH PROGRAM ELIGIBILITY; - ELIGIBILITY FOR OTHER STATE OR LOCAL ASSISTANCE PROGRAMS THAT ARE UNFUNDED (E.G., MEDICAID SPEND DOWN); - LOW INCOME/SUBSIDIZED HOUSING IS PROVIDED AS A VALID ADDRESS; - PATIENT IS DECEASED WITH NO KNOWN ESTATE; - DECLARED CHAPTER 7 BANKRUPTCY AND CARE WAS INCURRED PRIOR TO BANKRUPTCY; AND - DECLARED CHAPTER 13 BANKRUPTCY AND PATIENT WILL HAVE UNPAID BALANCE AFTER THE PAYMENT SCHEDULE IS RECEIVED. ADDITIONALLY, PRESUMPTIVE ELIGIBILITY MIGHT INCLUDE THE USE OF EXTERNAL PUBLICLY AVAILABLE DATA SOURCES THAT PROVIDE INFORMATION ON A PATIENT'S OR A PATIENT'S GUARANTOR'S ABILITY TO PAY (SUCH AS CREDIT SCORING). ONCE DETERMINED, DUE TO THE INHERENT NATURE OF THE PRESUMPTIVE CIRCUMSTANCES, THE PATIENT MAY BE ELIGIBLE FOR UP TO 100% WRITE OFF OF THE ACCOUNT BALANCE. ST. LUKE'S UNIVERSITY HEALTH NETWORK PROVIDES, WITHOUT DISCRIMINATION, CARE FOR ALL EMERGENCY MEDICAL CONDITIONS TO INDIVIDUALS REGARDLESS OF THEIR FINANCIAL ASSISTANCE ELIGIBILITY OR ABILITY TO PAY. IT IS THE POLICY OF ST. LUKE'S UNIVERSITY HEALTH NETWORK TO COMPLY WITH THE STANDARDS OF THE FEDERAL EMERGENCY MEDICAL TREATMENT AND ACTIVE LABOR TRANSPORT ACT OF 1986 ("EMTALA") AND THE EMTALA REGULATIONS IN PROVIDING A MEDICAL SCREENING EXAMINATION AND SUCH FURTHER TREATMENT AS MAY BE NECESSARY TO STABILIZE AN EMERGENCY MEDICAL CONDITION FOR ANY INDIVIDUAL COMING TO THE EMERGENCY DEPARTMENT SEEKING TREATMENT. SCHEDULE H, PART I, LINE 6A NOT APPLICABLE. SCHEDULE H, PART I, LINE 7 THE STRATAJAZZ DECISION SUPPORT/COST ACCOUNTING SYSTEM ("STRATAJAZZ") WAS THE TOOL UTILIZED TO DETERMINE THE COST OF FINANCIAL ASSISTANCE, UNREIMBURSED MEDICAID, MEDICAID HMO AND SUBSIDIZED HEALTH SERVICES. THE ENTIRE ACTIVITY WAS COSTED THROUGH THE STRATAJAZZ APPLICATION, TO INCLUDE INPATIENT, OUTPATIENT, EMERGENCY ROOM AND ALL PAYERS. COSTING CONSISTED OF ALLOCATING COST FROM THE DEPARTMENTAL LEVEL DOWN TO THE SERVICE ITEM LEVEL. ONCE COSTS WERE DETERMINED AT THE SERVICE ITEM LEVEL, WE THEN AGGREGATED ENCOUNTERS INTO THE DEFINED TARGETED GROUPS. FOR DETERMINATION OF THE UNREIMBURSED COSTS FOR MEDICAID, MEDICAID HMO AND SUBSIDIZED SERVICES REPORTED ON PART I, LINE 7, FINANCIAL ASSISTANCE AT COST, BAD DEBT, AND ALL OVERLAPPING CASES REPORTED ELSEWHERE WERE EXCLUDED. THE RATIO OF PATIENT CARE COST TO CHARGES WAS UTILIZED TO DETERMINE THE FINANCIAL ASSISTANCE AT COST. THE DEVELOPMENT OF THE RATIO CONFORMS TO THE FORM 990 INSTRUCTIONS. THE MEDICARE SHORTFALL/SURPLUS WAS DETERMINED USING THE MEDICARE COMPLEX COST REPORTING FORM UTILIZING ALLOWABLE MEDICARE COSTS. SCHEDULE H, PART I, LINE 7G THE AMOUNT INCLUDED IN SCHEDULE H, PART I, LINE 7G AS COMMUNITY BENEFIT EXPENSE REPRESENT SUBSIDIZED HEALTH SERVICES RELATED TO EMERGENCY AND PRIMARY CARE HEALTH SERVICES, BOTH OF WHICH ARE DOCUMENTED HEALTH NEEDS WITHIN THE COMMUNITY. SCHEDULE H, PART II THIS ORGANIZATION HAS DIRECT INVOLVEMENT IN NUMEROUS COMMUNITY BUILDING ACTIVITIES THAT PROMOTE AND IMPROVE THE HEALTH STATUS AND GENERAL BETTERMENT OF THE COMMUNITIES SERVED BY THE HOSPITAL. THIS IS ACCOMPLISHED THROUGH SERVICE ON STATE AND REGIONAL ADVOCACY COMMITTEES AND BOARDS, VOLUNTEERISM WITH LOCAL COMMUNITY-BASED NON-PROFIT ADVOCACY GROUPS, AND PARTICIPATION IN CONFERENCES AND OTHER EDUCATIONAL ACTIVITIES TO PROMOTE UNDERSTANDING OF THE ROOT CAUSES OF HEALTH CONCERNS. THIS ORGANIZATION PROVIDES EDUCATIONAL MATERIALS, CONDUCTS COMMUNITY HEALTH FAIRS AND HOLDS HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS. PRESENTATIONS ARE PROVIDED BY PHYSICIANS, NURSES AND OTHER HEALTHCARE PROFESSIONALS. SCHEDULE H, PART III, LINES 2, 3 & 4 BAD DEBT EXPENSE WAS CALCULATED USING THE PROVIDERS' BAD DEBT EXPENSE MULTIPLIED BY ITS COST TO CHARGE RATIO. THE NETWORK RECOGNIZED REVENUE FROM CONTRACTS WITH CUSTOMERS IN ACCORDANCE WITH ASC 606. THE STANDARD'S CORE PRINCIPLE IS THAT AN ENTITY WILL RECOGNIZE REVENUE WHEN IT TRANSFERS PROMISED GOODS OR SERVICES TO CUSTOMERS IN AN AMOUNT THAT REFLECTS THE CONSIDERATION TO WHICH THE COMPANY EXPECTS TO BE ENTITLED IN EXCHANGE FOR THOSE GOODS OR SERVICES. PLEASE REFER TO FOOTNOTE 3 WITHIN THE NETWORK'S CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR ADDITIONAL INFORMATION ON THIS TOPIC AND THE REPORTING OF THE NETWORK'S REVENUE RECOGNITION AND ACCOUNTS RECEIVABLE. SCHEDULE H, PART III, LINE 8 MEDICARE COSTS WERE DERIVED FROM THE MEDICARE COST REPORT FILED BY THE ORGANIZATION. THE ORGANIZATION FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. AS OUTLINED MORE FULLY BELOW THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES AND MISSION IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUAL'S IN A NON-DISCRIMINATORY MANNER WITHOUT REGARD TO RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY AND CONSISTENT WITH THE COMMUNITY BENEFIT STANDARD PROMULGATED BY THE INTERNAL REVENUE SERVICE ("IRS"). THE COMMUNITY BENEFIT STANDARD IS THE CURRENT STANDARD FOR A HOSPITAL FOR RECOGNITION AS A TAX-EXEMPT AND CHARITABLE ORGANIZATION UNDER INTERNAL REVENUE CODE ("IRC") 501(C)(3). THE ORGANIZATION IS RECOGNIZED AS A TAX-EXEMPT ENTITY AND CHARITABLE ORGANIZATION UNDER 501(C)(3) OF THE IRC. ALTHOUGH THERE IS NO DEFINITION IN THE TAX CODE FOR THE TERM "CHARITABLE", A REGULATION PROMULGATED BY THE DEPARTMENT OF THE TREASURY PROVIDES SOME GUIDANCE AND STATES THAT "[T]HE TERM CHARITABLE IS USED IN 501(C)(3) IN ITS GENERALLY ACCEPTED LEGAL SENSE,PROVIDES EXAMPLES OF CHARITABLE PURPOSES, INCLUDING THE RELIEF OF THE POOR OR UNPRIVILEGED; THE PROMOTION OF SOCIAL WELFARE; AND THE ADVANCEMENT OF EDUCATION, RELIGION, AND SCIENCE. NOTE: IT DOES NOT EXPLICITLY ADDRESS THE ACTIVITIES OF HOSPITALS. IN THE ABSENCE OF EXPLICIT STATUTORY OR REGULATORY REQUIREMENTS APPLYING THE TERM "CHARITABLE" TO HOSPITALS, IT HAS BEEN LEFT TO THE IRS TO DETERMINE THE CRITERIA HOSPITALS MUST MEET TO QUALIFY AS IRC 501(C)(3) CHARITABLE ORGANIZATIONS. THE ORIGINAL STANDARD WAS KNOWN AS THE CHARITY CARE STANDARD. THIS STANDARD WAS REPLACED BY THE IRS WITH THE COMMUNITY BENEFIT STANDARD WHICH IS THE CURRENT STANDARD. CHARITY CARE STANDARD IN 1956, THE IRS ISSUED REVENUE RULING 56-185, WHICH ADDRESSED THE REQUIREMENTS HOSPITALS NEEDED TO MEET IN ORDER TO QUALIFY FOR IRC 501(C)(3) STATUS. ONE OF THESE REQUIREMENTS IS KNOWN AS THE "CHARITY CARE STANDARD." UNDER THE STANDARD, A HOSPITAL HAD TO PROVIDE, TO THE EXTENT OF ITS FINANCIAL ABILITY, FREE OR REDUCED-COST CARE TO PATIENTS UNABLE TO PAY FOR IT. A HOSPITAL THAT EXPECTED FULL PAYMENT DID NOT, ACCORDING TO THE RULING, PROVIDE CHARITY CARE BASED ON THE FACT THAT SOME PATIENTS ULTIMATELY FAILED TO PAY. THE RULING EMPHASIZED THAT A LOW LEVEL OF CHARITY CARE DID NOT NECESSARILY MEAN THAT A HOSPITAL HAD FAILED TO MEET THE REQUIREMENT SINCE THAT LEVEL COULD REFLECT ITS FINANCIAL ABILITY TO PROVIDE SUCH CARE. THE RULING ALSO NOTED THAT PUBLICLY SUPPORTED COMMUNITY HOSPITALS WOULD NORMALLY QUALIFY AS CHARITABLE ORGANIZATIONS BECAUSE THEY SERVE THE ENTIRE COMMUNITY AND A LOW LEVEL OF CHARITY CARE WOULD NOT AFFECT A HOSPITAL'S EXEMPT STATUS IF IT WAS DUE TO THE SURROUNDING COMMUNITY'S LACK OF CHARITABLE DEMANDS. COMMUNITY BENEFIT STANDARD IN 1969, THE IRS ISSUED REVENUE RULING 69-545, WHICH "REMOVE[D]" FROM REVENUE RULING 56-185 "THE REQUIREMENTS RELATING TO CARING FOR PATIENTS WITHOUT CHARGE OR AT RATES BELOW COST." UNDER THE STANDARD DEVELOPED IN REVENUE RULING 69-545, WHICH IS KNOWN AS THE "COMMUNITY BENEFIT STANDARD," HOSPITALS ARE JUDGED ON WHETHER THEY PROMOTE THE HEALTH OF A BROAD CLASS OF INDIVIDUALS IN THE COMMUNITY. THE RULING INVOLVED A HOSPITAL THAT ONLY ADMITTED INDIVIDUALS WHO COULD PAY FOR THE SERVICES (BY THEMSELVES, PRIVATE INSURANCE, OR PUBLIC PROGRAMS SUCH AS MEDICARE), BUT OPERATED A FULL-TIME EMERGENCY ROOM THAT WAS OPEN TO EVERYONE. THE IRS RULED THAT THE HOSPITAL QUALIFIED AS A CHARITABLE ORGANIZATION BECAUSE IT PROMOTED THE HEALTH OF PEOPLE IN ITS COMMUNITY. THE IRS REASONED THAT BECAUSE THE PROMOTION OF HEALTH WAS A CHARITABLE PURPOSE ACCORDING TO THE GENERAL LAW OF CHARITY, IT FELL WITHIN THE "GENERALLY ACCEPTED LEGAL SENSE" OF THE TERM "CHARITABLE," AS REQUIRED BY TREAS. REG. 1.501(C)(3)-1(D)(2). THE IRS RULING STATED THAT THE PROMOTION OF HEALTH, LIKE THE RELIEF OF POVERTY AND THE ADVANCEMENT OF EDUCATION AND RELIGION, IS ONE OF THE PURPOSES IN THE GENERAL LAW OF CHARITY THAT IS DEEMED BENEFICIAL TO THE COMMUNITY AS A WHOLE EVEN THOUGH THE CLASS OF BENEFICIARIES ELIGIBLE TO RECEIVE A DIRECT BENEFIT FROM ITS ACTIVITIES DOES NOT INCLUDE ALL MEMBERS OF THE COMMUNITY, SUCH AS INDIGENT MEMBERS OF THE COMMUNITY, PROVIDED THAT THE CLASS IS NOT SO SMALL THAT ITS RELIEF IS NOT OF BENEFIT TO THE COMMUNITY. THE IRS CONCLUDED THAT THE HOSPITAL WAS "PROMOTING THE HEALTH OF A CLASS OF PERSONS THAT IS BROAD ENOUGH TO BENEFIT THE COMMUNITY" BECAUSE ITS EMERGENCY ROOM WAS OPEN TO ALL AND IT PROVIDED CARE TO EVERYONE WHO COULD PAY, WHETHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT. OTHER CHARACTERISTICS OF THE HOSPITAL THAT THE IRS HIGHLIGHTED INCLUDED THE FOLLOWING: ITS SURPLUS FUNDS WERE USED TO IMPROVE PATIENT CARE, EXPAND HOSPITAL FACILITIES, AND ADVANCE MEDICAL TRAINING, EDUCATION, AND RESEARCH; IT WAS CONTROLLED BY A BOARD OF TRUSTEES THAT CONSISTED OF INDEPENDENT CIVIC LEADERS; AND HOSPITAL MEDICAL STAFF PRIVILEGES WERE AVAILABLE TO ALL QUALIFIED PHYSICIANS. THE AMERICAN HOSPITAL ASSOCIATION ("AHA") FEELS THAT MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT ARE COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THIS ORGANIZATION AGREES WITH THE AHA POSITION. AS OUTLINED IN THE AHA LETTER TO THE IRS DATED AUGUST 21, 2007 WITH RESPECT TO THE FIRST PUBLISHED DRAFT OF THE NEW FORM 990 AND SCHEDULE H, THE AHA FELT THAT THE IRS SHOULD INCORPORATE THE FULL VALUE OF THE COMMUNITY BENEFIT THAT HOSPITALS PROVIDE BY COUNTING MEDICARE UNDERPAYMENTS (SHORTFALL) AND BAD DEBT AS QUANTIFIABLE COMMUNITY BENEFIT FOR THE FOLLOWING REASONS: - PROVIDING CARE FOR THE ELDERLY AND SERVING MEDICARE PATIENTS IS AN ESSENTIAL PART OF THE COMMUNITY BENEFIT STANDARD. - MEDICARE, LIKE MEDICAID, DOES NOT PAY THE FULL COST OF CARE. RECENTLY, MEDICARE REIMBURSES HOSPITALS ONLY 92 CENTS FOR EVERY DOLLAR THEY SPEND TO TAKE CARE OF MEDICARE PATIENTS. THE MEDICARE PAYMENT ADVISORY COMMISSION ("MEDPAC") IN ITS MARCH 2007 REPORT TO CONGRESS CAUTIONED THAT UNDERPAYMENT WILL GET EVEN WORSE, WITH MARGINS REACHING A 10-YEAR LOW AT NEGATIVE 5.4 PERCENT. - MANY MEDICARE BENEFICIARIES, LIKE THEIR MEDICAID COUNTERPARTS, ARE POOR. MORE THAN 46 PERCENT OF MEDICARE SPENDING IS FOR BENEFICIARIES WHOSE INCOME IS BELOW 200 PERCENT OF THE FEDERAL POVERTY LEVEL. MANY OF THOSE MEDICARE BENEFICIARIES ARE ALSO ELIGIBLE FOR MEDICAID -- SO CALLED ELIGIBLES". THERE IS EVERY COMPELLING PUBLIC POLICY REASON TO TREAT MEDICARE AND MEDICAID UNDERPAYMENTS SIMILARLY FOR PURPOSES OF A HOSPITAL'S COMMUNITY BENEFIT AND INCLUDE THESE COSTS ON FORM 990, SCHEDULE H, PART I. MEDICARE UNDERPAYMENT MUST BE SHOULDERED BY THE HOSPITAL IN ORDER TO CONTINUE TREATING THE COMMUNITY'S ELDERLY AND POOR. THESE UNDERPAYMENTS REPRESENT A REAL COST OF SERVING THE COMMUNITY AND SHOULD COUNT AS A QUANTIFIABLE COMMUNITY BENEFIT. BOTH THE AHA AND THIS ORGANIZATION ALSO FEEL THAT PATIENT BAD DEBT IS A COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THERE ARE COMPELLING REASONS THAT PATIENT BAD DEBT SHOULD BE COUNTED AS QUANTIFIABLE COMMUNITY BENEFIT AS FOLLOWS: - A SIGNIFICANT MAJORITY OF BAD DEBT IS ATTRIBUTABLE TO LOW-INCOME PATIENTS, WHO, FOR MANY REASONS, DECLINE TO COMPLETE THE FORMS REQUIRED TO ESTABLISH ELIGIBILITY FOR HOSPITALS' CHARITY CARE OR FINANCIAL ASSISTANCE PROGRAMS. A 2006 CONGRESSIONAL BUDGET OFFICE ("CBO") REPORT, NONPROFIT HOSPITALS AND THE PROVISION OF COMMUNITY BENEFITS, CITED TWO STUDIES INDICATING THAT "THE GREAT MAJORITY OF BAD DEBT WAS ATTRIBUTABLE TO PATIENTS WITH INCOMES BELOW 200% OF THE FEDERAL POVERTY LINE". - THE REPORT ALSO NOTED THAT A SUBSTANTIAL PORTION OF BAD DEBT IS PENDING CHARITY CARE. UNLIKE BAD DEBT IN OTHER INDUSTRIES, HOSPITAL BAD DEBT IS COMPLICATED BY THE FACT THAT HOSPITALS FOLLOW THEIR MISSION TO THE COMMUNITY AND TREAT EVERY PATIENT THAT COMES THROUGH THEIR EMERGENCY DEPARTMENT, REGARDLESS OF ABILITY TO PAY. PATIENTS WHO HAVE OUTSTANDING BILLS ARE NOT TURNED AWAY, UNLIKE OTHER INDUSTRIES. BAD DEBT IS FURTHER COMPLICATED BY THE AUDITING INDUSTRY'S STANDARDS ON REPORTING CHARITY CARE. MANY PATIENTS CANNOT OR DO NOT PROVIDE THE NECESSARY, EXTENSIVE DOCUMENTATION REQUIRED TO BE DEEMED CHARITY CARE BY AUDITORS. AS A RESULT, ROUGHLY 10% OF BAD DEBT IS PENDING CHARITY CARE. - THE CBO CONCLUDED THAT ITS FINDINGS "SUPPORT THE VALIDITY OF THE USE OF UNCOMPENSATED CARE [BAD DEBT AND CHARITY CARE] AS A MEASURE OF COMMUNITY BENEFITS" ASSUMING THE FINDINGS ARE GENERALIZABLE NATIONWIDE; THE EXPERIENCE OF HOSPITALS AROUND THE NATION REINFORCES THAT THEY ARE GENERALIZABLE. AS OUTLINED BY THE AHA, DESPITE THE HOSPITAL'S BEST EFFORTS AND DUE DILIGENCE, PATIENT BAD DEBT IS A PART OF THE HOSPITAL'S MISSION AND CHARITABLE PURPOSES. BAD DEBT REPRESENTS SCHEDULE H, PART III, LINE 9B ST. LUKE'S UNIVERSITY HEALTH NETWORK MANAGEMENT DEVELOPED POLICIES AND PROCEDURES FOR INTERNAL AND EXTERNAL COLLECTION PRACTICES THAT TAKE INTO ACCOUNT THE EXTENT TO WHICH THE PATIENT QUALIFIES FOR FINANCIAL ASSISTANCE, A PATIENT'S GOOD FAITH EFFORT TO APPLY FOR A GOVERNMENTAL PROGRAM OR FINANCIAL ASSISTANCE FROM ST. LUKE'S UNIVERSITY HEALTH NETWORK AND A PATIENT'S GOOD FAITH EFFORT TO COMPLY WITH HIS OR HER PAYMENT AGREEMENTS. BILLING & COLLECTION POLICY --------------------------- THE CREDIT AND COLLECTION POLICY IS ADMINISTERED IN ACCORDANCE WITH THE MISSION AND VALUES OF THE HOSPITAL AS WELL AS FEDERAL AND STATE LAW. THE POLICY IS DESIGNED TO PROMOTE APPROPRIATE ACCESS TO MEDICAL CARE FOR ALL PATIENTS REGARDLESS OF THEIR ABILITY TO PAY WHILE MAINTAINING THE NETWORK'S FISCAL RESPONSIBILITY TO MAXIMIZE REIMBURSEMENT AND MINIMIZE BAD DEBT. THE ORGANIZATION'S CREDIT AND COLLECTION POLICY IS INTENDED TO TAKE INTO ACCOUNT EACH INDIVIDUAL'S ABILITY TO CONTRIBUTE TO THE COST OF HIS OR HER CARE. THE ORGANIZATION MAKES SURE THAT PATIENTS ARE ASSISTED IN OBTAINING HEALTH INSURANCE COVERAGE FROM PRIVATELY AND PUBLICLY FUNDED SOURCES, WHENEVER POSSIBLE. ALL PATIENT BUSINESS SERVICE DEPARTMENT REPRESENTATIVES ARE EDUCATED ON ALL ASPECTS OF THE CREDIT AND COLLECTION POLICY AND ARE EXPECTED TO ADMINISTER THE POLICY ON A REGULAR AND CONSISTENT BASIS. PATIENT BUSINESS SERVICE REPRESENTATIVES ARE HELD ACCOUNTABLE TO TREAT ALL PATIENTS WITH COURTESY, RESPECT, CONFIDENTIALITY AND CULTURAL SENSITIVITY. THE CREDIT AND COLLECTION POLICY IS ADMINISTERED IN CONJUNCTION WITH THE PROCEDURES OUTLINED IN INTERNAL ADMINISTRATIVE POLICIES. THE SENIOR VICE PRESIDENT AND VICE PRESIDENT OF FINANCE HAVE OVERALL RESPONSIBILITY FOR THE CREDIT AND COLLECTION ACTIVITIES OF THE HOSPITAL. THE BUSINESS OFFICE MANAGEMENT STAFF IS RESPONSIBLE FOR THE DAY-TO-DAY ENFORCEMENT OF APPROVED POLICIES AND PROCEDURES. ST. LUKE'S UNIVERSITY HEALTH NETWORK MAY OFFER EXTENDED PAYMENT PLANS TO PATIENTS WHO ARE COOPERATING IN GOOD FAITH TO RESOLVE THEIR HOSPITAL BILLS. EMERGENCY & MEDICALLY NECESSARY SERVICES ---------------------------------------- ST. LUKE'S UNIVERSITY HEALTH NETWORK DOES NOT ENGAGE IN ANY ACTIONS THAT DISCOURAGE INDIVIDUALS FROM SEEKING EMERGENCY MEDICAL CARE. THE ORGANIZATION WILL NEVER DEMAND THAT AN EMERGENCY DEPARTMENT PATIENT PAY BEFORE RECEIVING TREATMENT FOR EMERGENCY MEDICAL CONDITIONS. ADDITIONALLY, ST. LUKE'S DOES NOT PERMIT DEBT COLLECTION ACTIVITIES IN THE EMERGENCY DEPARTMENT OR OTHER AREAS WHERE SUCH ACTIVITIES COULD INTERFERE WITH THE PROVISION OF EMERGENCY CARE ON A NONDISCRIMINATORY BASIS. ALL MEDICALLY NECESSARY HOSPITAL SERVICES ARE PROVIDED WITHOUT CONSIDERATION OF ABILITY TO PAY AND ARE NOT DELAYED PENDING APPLICATION OR APPROVAL OF MEDICAL ASSISTANCE OR THE ST. LUKE'S FINANCIAL ASSISTANCE PROGRAM. ADVANCE PAYMENT IS NOT REQUIRED FOR ANY MEDICALLY NECESSARY SERVICES. COMPLIANCE WITH INTERNAL REVENUE CODE SECTION 501(R)(6) ------------------------------------------------------- ST. LUKE'S UNIVERSITY HEALTH NETWORK DOES NOT ENGAGE IN ANY EXTRAORDINARY COLLECTION ACTIONS ("ECAS") AS DEFINED BY INTERNAL REVENUE CODE SECTION 501(R)(6) PRIOR TO THE EXPIRATION OF THE NOTIFICATION PERIOD. THE NOTIFICATION PERIOD IS DEFINED AS A 120-DAY PERIOD OR GREATER, WHICH BEGINS ON THE DATE OF THE 1ST POST-DISCHARGE BILLING STATEMENT, IN WHICH NO ECAS ARE INITIATED AGAINST THE PATIENT. SUBSEQUENT TO THE NOTIFICATION PERIOD ST. LUKE'S UNIVERSITY HEALTH NETWORK, OR ANY THIRD PARTIES ACTING ON ITS BEHALF, MAY INITIATE THE FOLLOWING ECAS AGAINST A PATIENT FOR AN UNPAID BALANCE IF THE FINANCIAL ASSISTANCE ELIGIBILITY DETERMINATION HAS NOT BEEN MADE OR IF AN INDIVIDUAL IS INELIGIBLE FOR FINANCIAL ASSISTANCE. ST. LUKE'S UNIVERSITY HEALTH NETWORK MAY AUTHORIZE THIRD PARTIES TO REPORT ADVERSE INFORMATION ABOUT THE INDIVIDUAL TO CONSUMER CREDIT REPORTING AGENCIES OR CREDIT BUREAUS ON DELINQUENT PATIENT ACCOUNTS AFTER THE NOTIFICATION PERIOD. THE ORGANIZATION ENSURES REASONABLE EFFORTS HAVE BEEN TAKEN TO DETERMINE WHETHER AN INDIVIDUAL IS ELIGIBLE FOR FINANCIAL ASSISTANCE UNDER THE FINANCIAL ASSISTANCE POLICY AND ENSURES THE FOLLOWING ACTIONS ARE TAKEN AT LEAST 30 DAYS PRIOR TO INITIATING ANY ECA: 1) THE PATIENT IS PROVIDED WITH WRITTEN NOTICE WHICH: - INDICATES THAT FINANCIAL ASSISTANCE IS AVAILABLE FOR ELIGIBLE PATIENTS; - IDENTIFIES THE ECA(S) THAT ST. LUKE'S UNIVERSITY HEALTH NETWORK INTENDS TO INITIATE TO OBTAIN PAYMENT FOR THE CARE; AND - STATES A DEADLINE AFTER WHICH SUCH ECAS MAY BE INITIATED. 2) THE PATIENT IS PROVIDED WITH A COPY OF THE PLAIN LANGUAGE SUMMARY; AND 3) REASONABLE EFFORTS ARE MADE TO ORALLY NOTIFY THE PATIENT ABOUT THE AVAILABILITY OF FINANCIAL ASSISTANCE AND HOW THE INDIVIDUAL MAY OBTAIN ASSISTANCE WITH THE FINANCIAL ASSISTANCE APPLICATION PROCESS. ST. LUKE'S UNIVERSITY HEALTH NETWORK ACCEPTS AND PROCESSES ALL APPLICATIONS FOR FINANCIAL ASSISTANCE SUBMITTED DURING THE APPLICATION PERIOD. THE APPLICATION PERIOD BEGINS ON THE DATE THE CARE IS PROVIDED AND ENDS ON THE 240TH DAY AFTER THE DATE OF THE FIRST POST-DISCHARGE BILLING STATEMENT. SCHEDULE H, PART VI; QUESTION 2 ST. LUKE'S UNIVERSITY HEALTH NETWORK'S DEPARTMENT OF COMMUNITY HEALTH OVERSEES ASSESSMENT OF THE HEALTHCARE NEEDS OF THE COMMUNITIES SERVED BY HOSPITALS WITHIN THE NETWORK. THE DEPARTMENT IS LED BY VICE PRESIDENT RAJIKA E. REED, PHD, MPH, MED. WHO HAS OVER 20 YEARS' EXPERIENCE IN PUBLIC HEALTH. ANALYSIS OF INFORMATION FROM THE FOLLOWING SOURCES IS PART OF THE DEPARTMENT'S ONGOING HEALTH NEEDS ASSESSMENT PROCESS: VITAL STATISTICS, PENNSYLVANIA DEPARTMENT OF HEALTH DATA, HOSPITAL DISCHARGE DATA, THE ROBERT WOOD JOHNSON COUNTY HEALTH PROFILES AND OTHER COUNTY DATA AVAILABLE FROM VARIOUS OTHER STATE AGENCIES. IN ADDITION, THE DEPARTMENT COLLECTS ONGOING DATA AND OUTCOMES FROM ITS COMPREHENSIVE COMMUNITY BASED PROGRAMMING INITIATIVES AND FROM ESTABLISHED COLLABORATIVE PARTNERSHIPS. IN 1996, WITH THE FULL APPROVAL AND SUPPORT OF THE BOARD OF TRUSTEES, ST. LUKE'S COMMUNITY HEALTH DEPARTMENT ASSUMED A LEADERSHIP ROLE IN CREATING A HEALTH IMPROVEMENT PARTNERSHIP WITH KEY AGENCIES AND ORGANIZATIONS IN THE GREATER BETHLEHEM AREA. THE BETHLEHEM PARTNERSHIP FOR A HEALTHY COMMUNITY WAS FORMED, CONSISTING OF OVER 60 REPRESENTATIVES FROM HEALTHCARE, BUSINESS, COMMUNITY, EDUCATION AND SERVICE ORGANIZATIONS. THIS GROUP COLLECTIVELY DEVELOPED PROGRAMS TO MEET THE IDENTIFIED NEEDS OF ECONOMICALLY DISADVANTAGED FAMILIES, ESPECIALLY CHILDREN, IN BETHLEHEM AND THROUGHOUT THE LEHIGH VALLEY BY CONDUCTING FORMALIZED COMMUNITY ASSESSMENTS ON A REGULAR BASIS. THIS PROCESS ALLOWED ST. LUKE'S TO IDENTIFY THE MOST PREVAILING HEALTH CARE NEEDS OF RESIDENTS AND BASE PROGRAM DEVELOPMENT AND DELIVERY ACCORDING TO THESE NEEDS. IN THE LAST SEVEN YEARS, THE BETHLEHEM PARTNERSHIP HAS TRANSFORMED INTO AN EVIDENCED BASED MODEL. THIS COMPREHENSIVE APPROACH MAINTAINED THE MOST SUCCESSFUL AND OUTCOMES-DRIVEN WORK WITHIN THE ALLENTOWN AND BETHLEHEM SCHOOL DISTRICTS, WHILE CREATING A MODEL OF SERVICE THAT COULD BE IMPLEMENTED IN OTHER URBAN AND RURAL SCHOOL DISTRICTS WITH MINOR ACCOMMODATIONS. THIS ALLOWED US TO BETTER ADDRESS THE NEEDS OF OUR EXPANDING SERVICE AREAS AS OUR ORGANIZATION GREW FROM A ONE CAMPUS COMMUNITY HOSPITAL TO AN 14-CAMPUS HOSPITAL NETWORK. WE NOW SPEARHEAD A NATIONAL MODEL OF COLLABORATION WITH 200+ PARTNERS REPRESENTING LOCAL BUSINESSES, GOVERNMENT, EDUCATIONAL, SOCIAL SERVICE AND COMMUNITY ORGANIZATIONS. A NUMBER OF OUR CHNA DETERMINED HEALTH PRIORITIES ARE ADDRESSED USING THE EVIDENCE BASED COMMUNITY SCHOOLS AND COMMUNITY HEALTH WORKER MODELS TO FOCUSED ON MEDICAL, DENTAL, VISION, MENTAL HEALTH, AND INSURANCE WHILE PROMOTING HEALTHY LIVING INITIATIVES, LITERACY AND LEADERSHIP TO IMPROVE THE HEALTH AND EDUCATIONAL OUTCOMES OF OUR COMMUNITY. SCHOOL DISTRICTS ARE THE HUB TO CULTIVATE THE PHYSICAL AND MENTAL WELL-BEING OF INDIVIDUALS AND FAMILIES IN OUR COMMUNITY THROUGH COLLABORATIVE PARTNERSHIPS, USING EVIDENCE-BASED PROGRAMS, TO CONNECT FAMILIES TO HEALTH SERVICES. THE MISSION IS TO CREATE PATHWAYS FOR EQUITY TOWARD MEASURABLE HEALTH OUTCOMES THROUGH ADVOCACY, ACCESS, AND NAVIGATION OF RESOURCES FOR PARTNERS AND UNDERSERVED COMMUNITIES. THE VISION IS FOR EVERYONE IN OUR COMMUNITY TO HAVE ACCESS TO EXCEPTIONAL HEALTHCARE BUILT ON A FOUNDATION OF TRUST AND COMPASSION. BASED ON THE IDENTIFIED NEEDS AND PRIORITIES, EACH HOSPITAL CAMPUS DEVELOPS PLANS AND PROGRAMS TO IMPROVE THE HEALTH OF THOSE IN THE COMMUNITIES. THROUGH OUR PARTNERSHIP EFFORTS AND INITIATIVES, WE PROVIDE MOBILE YOUTH HEALTH SERVICES (CONNECTING STUDENTS TO MEDICAL, DENTAL & VISION VANS, INSURANCE, PHYSICAL, BEHAVIORAL, AND MENTAL HEALTH ASSESSMENTS AND SERVICES), HEALTHY LIVING INITIATIVES (GET YOUR TAIL ON THE TRAIL AND NUTRITION PROGRAMS), LITERACY PROGRAMS (READ ACROSS AMERICA, REACH OUT AND READ, AND LITTLE FREE LIBRARIES), AND YOUTH DEVELOPMENT (ADOLESCENT CAREER MENTORING). OUR INITIATIVES ARE CONTINUALLY ASSESSED AND EVALUATED TO PROVIDE MEASURABLE AND EFFECTIVE HEALTH OUTCOMES. LOCAL SCHOOL COORDINATORS AND COMMUNITY LEADERSHIP COMMITTEES ASSESS, EVALUATE AND GUIDE THE INITIATIVES THAT FEED INTO THE COMPREHENSIVE MODEL USING EVIDENCE-BASED PROGRAMS/SERVICES. SCHEDULE H, PART VI; QUESTION 3 ST. LUKE'S UNIVERSITY HEALTH NETWORK IS COMMITTED TO PROVIDING THE HIGHEST QUALITY HEALTHCARE SERVICES TO OUR COMMUNITY. ST. LUKE'S UNIVERSITY HEALTH NETWORK IS COMMITTED TO A SERVICE EXCELLENCE PHILOSOPHY THAT STRIVES TO MEET OR EXCEED PATIENT EXPECTATIONS. ALL PATIENTS WILL RECEIVE A UNIFORM STANDARD OF CARE THROUGHOUT ALL ST. LUKE'S FACILITIES, REGARDLESS OF SOCIAL, CULTURAL, FINANCIAL, RELIGIOUS, RACIAL, GENDER OR SEXUAL ORIENTATION FACTORS. ST. LUKE'S UNIVERSITY HEALTH NETWORK STRIVES TO ENSURE THAT ALL PATIENTS RECEIVE ESSENTIAL EMERGENCY AND OTHER MEDICALLY NECESSARY HEALTHCARE SERVICES REGARDLESS OF THEIR ABILITY TO PAY. ST. LUKE'S UNIVERSITY HEALTH NETWORK IS COMMITTED TO PROVIDING FINANCIAL ASSISTANCE TO PERSONS WHO HAVE HEALTHCARE NEEDS AND ARE UNINSURED, INELIGIBLE FOR GOVERNMENT ASSISTANCE, OR OTHERWISE UNABLE TO PAY, FOR MEDICALLY NECESSARY CARE BASED ON THEIR INDIVIDUAL FINANCIAL SITUATION. ALL PERSONS WHO PRESENT THEMSELVES FOR EMERGENCY OR OTHER MEDICALLY NECESSARY HEALTHCARE SERVICES ARE ADMITTED AND TREATED; THEY ARE REGISTERED AS PATIENTS OF THE HOSPITAL AND RECEIVE ANY NECESSARY SERVICES AS PRESCRIBED BY THE PATIENT'S PHYSICIAN. A PROSPECTIVE PATIENT OF ST. LUKE'S UNIVERSITY HEALTH NETWORK IS NEVER DENIED NECESSARY HEALTHCARE SERVICES ON THE BASIS OF THEIR ABILITY TO PAY. ST. LUKE'S UNIVERSITY HEALTH NETWORK DOES ITS BEST TO EDUCATE AND INFORM PATIENTS ABOUT THE AVAILABILITY OF FINANCIAL ASSISTANCE. FOR THE BENEFIT OF THE PATIENTS, THE FINANCIAL ASSISTANCE POLICY, FINANCIAL ASSISTANCE APPLICATION AND PLAIN LANGUAGE SUMMARY ARE ALL AVAILABLE ON-LINE. ADDITIONALLY, PAPER COPIES ARE AVAILABLE UPON REQUEST WITHOUT CHARGE BY MAIL AND ARE AVAILABLE WITHIN THE HOSPITAL FACILITY REGISTRATION AREAS. THESE INCLUDE EMERGENCY ROOMS, ADMITTING AND REGISTRATION DEPARTMENTS, HOSPITAL BASED CLINICS AND PATIENT FINANCIAL SERVICES. THE FINANCIAL ASSISTANCE POLICY, FINANCIAL ASSISTANCE APPLICATION AND PLAIN LANGUAGE SUMMARY ARE AVAILABLE IN ENGLISH AND IN THE PRIMARY LANGUAGE OF POPULATIONS WITH LIMITED PROFICIENCY IN ENGLISH ("LEP") THAT CONSTITUTES THE LESSER OF 1,000 INDIVIDUALS OR 5% OF THE NETWORK'S PRIMARY SERVICE AREA. SIGNS OR DISPLAYS ARE CONSPICUOUSLY POSTED IN PUBLIC HOSPITAL LOCATIONS INCLUDING THE EMERGENCY DEPARTMENT, ADMISSIONS DEPARTMENT AND REGISTRATION DEPARTMENT THAT NOTIFY AND INFORM PATIENTS ABOUT THE AVAILABILITY OF FINANCIAL ASSISTANCE. THROUGH ITS COMMUNICATION DEPARTMENT, ST. LUKE'S UNIVERSITY HEALTH NETWORK ALSO MAKES REASONABLE EFFORTS TO INFORM MEMBERS OF THE COMMUNITY ABOUT THE AVAILABILITY OF FINANCIAL ASSISTANCE. FINANCIAL ASSISTANCE REFERRALS CAN BE MADE BY A MEMBER OF THE HOSPITAL STAFF OR MEDICAL STAFF, INCLUDING PHYSICIANS, NURSES, FINANCIAL COUNSELORS, SOCIAL WORKERS, CASE MANAGERS, CHAPLAINS AND RELIGIOUS SPONSORS. ALL PATIENTS ARE OFFERED A COPY OF THE PLAIN LANGUAGE SUMMARY AS PART OF THE INTAKE OR DISCHARGE PROCESS. ADDITIONALLY, FINANCIAL COUNSELORS AND CUSTOMER SERVICE REPRESENTATIVES ARE AVAILABLE TO ASSIST PATIENTS WITH QUESTIONS CONCERNING CHARGES, PAYMENTS OR ANY OTHER CONCERNS. SCHEDULE H, PART VI, QUESTION 4 ST. LUKE'S UNIVERSITY HEALTH NETWORK'S (SLUHN'S) CARBON CAMPUS IS LOCATED IN CARBON COUNTY, PENNSYLVANIA IN NORTHERN PENNSYLVANIA. THIS AREA IS HISTORICALLY KNOWN FOR ITS COAL MINING SITES; IT IS SPECIFICALLY KNOWN FOR ITS LARGE QUANTITIES OF ANTHRACITE COAL. THE FOLLOWING INFORMATION REGARDING THE COMMUNITY DEMOGRAPHICS IS INCLUDED IN THE ORGANIZATION'S CHNA. GEOGRAPHIC DESCRIPTION OF MEDICAL SERVICE AREA & COMMUNITY SERVED ================================================================= FOR THE PURPOSES OF THE CHNA, WE DEFINE THE TOP ZIP CODES AS THOSE THAT ACCOUNT FOR 80% OF THE POPULATION SERVED BY THE MINERS, LEHIGHTON, AND CARBON CAMPUSES, ALSO COLLECTIVELY REFERRED TO AS THE RURAL WEST SERVICE AREA. IN THE RURAL WEST SERVICE AREA, 45% OF THE PATIENTS SERVED RESIDE IN 18235 (LEHIGHTON), 18252 (TAMAQUA), AND 18071 (PALMERTON). THE RURAL WEST SERVICE AREA INCLUDES BOTH CARBON AND SCHUYLKILL COUNTIES. A TOTAL OF 95,103 PEOPLE LIVE IN THE 438.03 SQUARE MILE AREA OUTLINED IN FIGURE 3 ACCORDING TO THE U.S. CENSUS BUREAU AMERICAN COMMUNITY SURVEY (ACS) 5-YEAR ESTIMATES (2015-2019). THE POPULATION DENSITY FOR THIS AREA IS ESTIMATED AT 217.11 PERSONS PER SQUARE MILE, COMPARED TO 285.89 PERSONS PER SQUARE MILE IN PENNSYLVANIA AND 91.93 PERSONS PER SQUARE MILE NATIONALLY. ACCORDING TO THE 2010 DECENNIAL CENSUS, 56.5% OF THE RURAL WEST SERVICE AREA LIVES IN AN URBAN SETTING AND 43.5% OF THE SERVICE AREA LIVE IN A RURAL SETTING. URBAN AREAS ARE DEFINED BY POPULATION DENSITY, COUNT, SIZE THRESHOLDS AND THE AMOUNT OF IMPERVIOUS SURFACE OR DEVELOPMENT (I.E., AREAS IMPERVIOUS TO WATER SEEPING INTO THE GROUND, CONCRETE-HEAVY AREAS). RURAL AREAS ARE ALL OTHER AREAS NOT DEFINED AS URBAN. THE PENNSYLVANIA PERCENTAGES FOR URBAN AND RURAL LIVING ARE 78.7% AND 21.3%, RESPECTIVELY. THE UNITED STATES URBAN AND RURAL PERCENTAGES ARE 80.9% AND 19.1%, RESPECTIVELY. GENDER ====== ACCORDING TO THE ACS, 49.7% OF PEOPLE IDENTIFIED AS FEMALE AND 50.3% IDENTIFIED AS MALE IN THE RURAL WEST SERVICE AREA (FIGURE 5). THIS IS SIMILAR TO THE NATIONAL AVERAGE, 50.8% AND 49.2%, RESPECTIVELY. IN CARBON COUNTY, CONVERSELY TO RURAL WEST, 50.3% OF PEOPLE IDENTIFY AS FEMALE AND 49.7% AS MALE. IN SCHUYLKILL COUNTY, 48.9% OF PEOPLE IDENTIFY AS FEMALE AND 51.1% AS MALE. WHEN ASKED ABOUT SEX ASSIGNED AT BIRTH IN THE CHNA SURVEY, 66% OF RURAL WEST SERVICE AREA RESPONDENTS INDICATED FEMALE AND 34% INDICATED MALE. AGE === ACS REPORTS 20% OF THE SERVICE AREA POPULATION ARE PEOPLE UNDER 18 YEARS OLD AND 19.4% ARE 65 YEARS AND OLDER (FIGURE 4). COMBINED, THESE GROUPS ACCOUNT FOR 39.4% OF THE SERVICE AREA POPULATION, LEAVING 60.6% BETWEEN THE AGES OF 18 AND 64. IN CARBON COUNTY, 19.4% OF THE POPULATION IS UNDER 18 YEARS OLD AND 20.7% ARE 65 YEARS AND OLDER, LEAVING 59.9% BETWEEN THE AGES OF 18 AND 64. IN SCHUYLKILL COUNTY, 19.8% OF THE POPULATION ARE UNDER 18 AND 20% ARE 65 YEARS AND OLDER, LEAVING 60.2% BETWEEN THE AGES OF 18 AND 24. MOST CHNA SURVEY RESPONDENTS FROM THE RURAL WEST SERVICE AREA WERE 55 AND ABOVE; 22% WERE 55 TO 64 YEARS OLD AND 33% WERE 65 YEARS AND OLDER. ONLY 19% OF RESPONDENTS WERE AGES 45 TO 54, 13% AGES 35 TO 44, 10% AGES 25 TO 34, AND 3% AGES 18 TO 24. THE SURVEY WAS ONLY ADMINISTERED TO PEOPLE 18 YEARS AND OLDER, THEREFORE, YOUNGER AGES ARE NOT REFLECTED IN THE SURVEY RESULTS. THE MEDIAN AGE OF RESPONDENTS WAS 57 YEARS OLD. RACE ==== THE ACS REPORTS THAT 95.6% OF THE SERVICE AREA IDENTIFIES AS WHITE, FOLLOWED BY BLACK (2.2%), OTHER RACE (1.7%), AND ASIAN (0.5%). DATA FOR INDIVIDUALS IDENTIFYING AS NATIVE HAWAIIAN/PACIFIC ISLANDER, NATIVE AMERICAN/ALASKA NATIVE, AND MULTIPLE RACES WERE COMBINED WITH OTHER RACE DUE TO SMALL SAMPLE SIZES. IN CARBON COUNTY, 95.7% OF PEOPLE IDENTIFY AS WHITE, FOLLOWED BY BLACK (2.3%), OTHER RACE (1.7%), AND ASIAN (0.6%). IN SCHUYLKILL COUNTY, THE MAJORITY OF PEOPLE IDENTIFY AS WHITE (93.7%), FOLLOWED BY BLACK (3.2%), OTHER RACE (2.6%), AND ASIAN (0.5%). SIMILAR TO ACS FINDINGS, 95% OF CHNA SURVEY RESPONDENTS FROM THE RURAL WEST SERVICE AREA IDENTIFIED AS WHITE, FOLLOWED BY OTHER RACE (4%), AND BLACK (1%). ETHNICITY ========= THE ACS REPORTS THAT 95% OF THE RURAL WEST SERVICE AREA IDENTIFIES AS NON-HISPANIC AND 5% IDENTIFIES AS HISPANIC (FIGURE 6). THE POPULATION IN PENNSYLVANIA IS 92.7% NON-HISPANIC AND 7.3% HISPANIC; THE UNITED STATES POPULATION IS 82% AND 18%, RESPECTIVELY. IN CARBON COUNTY, 95.2% OF PEOPLE IDENTIFY AS NON-HISPANIC WHILE 4.8% IDENTIFY AS HISPANIC. IN SCHUYLKILL COUNTY, 95.6% OF IDENTIFY AS NON-HISPANIC AND 4.4% IDENTIFIES AS HISPANIC. THE MAJORITY OF RURAL WEST CHNA SURVEY RESPONDENTS IDENTIFY AS NON-HISPANIC (96%), WHILE 4% OF RESPONDENTS IDENTIFY AS HISPANIC. POVERTY ======= UNEMPLOYMENT AND UNDEREMPLOYMENT HAVE SERIOUS IMPACTS ON AN INDIVIDUAL'S HEALTH. INCOME IS A SOCIAL DETERMINANT OF HEALTH, AND IN ADDITION TO AFFECTING ONE'S INCOME, UNEMPLOYMENT AND UNDEREMPLOYMENT CAN LEAVE INDIVIDUALS WITHOUT HEALTH INSURANCE, PAID SICK LEAVE AND PARENTAL LEAVE-EXACERBATING NEGATIVE HEALTH OUTCOMES WHEN PEOPLE ARE AT THEIR MOST VULNERABLE. THE UNEMPLOYMENT RATE IS 4.4% IN PENNSYLVANIA, BUT RATES VARIED WIDELY DURING THE YEAR DUE TO THE COVID-19 PANDEMIC. IN JANUARY OF 2020, PENNSYLVANIA STARTED OFF THE YEAR WITH AN UNEMPLOYMENT RATE OF 4.7%. HOWEVER, THAT UNEMPLOYMENT RATE SKY-ROCKETED TO 16.1% BY APRIL OF 2020-THE HIGHEST OBSERVED SINCE THE U.S. GREAT DEPRESSION. PENNSYLVANIA REACHED UNEMPLOYMENT RATES BELOW 10% BY SEPTEMBER OF 2020, AND 5.4% OF RESIDENTS OF BOTH CARBON AND SCHUYLKILL COUNTIES ARE UNEMPLOYED. IN RECENT YEARS, SCHUYLKILL COUNTY FOLLOWS VERY CLOSELY THE UNEMPLOYMENT TRENDS OF BOTH PENNSYLVANIA AND THE UNITED STATES, WITH SLIGHTLY HIGHER RATES, INDICATING A NEED FOR MORE JOB OPPORTUNITIES IN THE COUNTY. THE MAJORITY OF CHNA SURVEY RESPONDENTS FROM THE RURAL WEST SERVICE AREA ARE EMPLOYED (42.5%) OR RETIRED (35.6%), WHILE 3.8% OF RESPONDENTS ARE SELF-EMPLOYED, 3.6% ARE HOMEMAKERS, AND 0.8% ARE STUDENTS. ADDITIONALLY, 13.7% OF RESPONDENTS ARE UNEMPLOYED, 1.7% HAVE BEEN OUT OF WORK LESS THAN 1 YEAR, 2.5% HAVE BEEN OUT OF WORK MORE THAN 1 YEAR, AND 9.5% ARE UNABLE TO WORK. SCHEDULE H, PART VI; QUESTION 5 THE ENTIRE ST. LUKE'S UNIVERSITY HEALTH NETWORK PROMOTES THE HEALTH OF THE COMMUNITY ON A DAILY BASIS THROUGHOUT THE YEAR. THE NETWORK COORDINATES AND OFFERS NUMEROUS COMMUNITY BENEFIT PROGRAMS, OUTCOMES BASED INITIATIVES AND SUPPORT GROUPS TO THE COMMUNITY, WITH A SPECIAL EMPHASIS ON OUR VULNERABLE POPULATIONS. PLEASE REFER TO SCHEDULE O FOR A DETAILED COMMUNITY BENEFIT STATEMENT. SCHEDULE H, PART VI; QUESTION 6 OUTLINED BELOW IS A SUMMARY OF THE ENTITIES WHICH COMPRISE THE ST. LUKE'S UNIVERSITY HEALTH NETWORK: ST. LUKE'S HEALTH NETWORK, INC. ------------------------------- ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT OF ST. LUKE'S UNIVERSITY HEALTH NETWORK ("ST. LUKE'S"). THIS INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTS OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THIS ORGANIZATION IS THE SOLE MEMBER OF EACH AFFILIATED ENTITY. ST. LUKE'S IS AN INTEGRATED NETWORK OF HEALTHCARE PROVIDERS THROUGHOUT THE STATES OF PENNSYLVANIA AND NEW JERSEY. ST. LUKE'S HEALTH NETWORK, INC. IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). AS THE PARENT ORGANIZATION, ST. LUKE'S HEALTH NETWORK, INC. STRIVES TO CONTINUALLY DEVELOP AND OPERATE A MULTI-HOSPITAL HEALTHCARE NETWORK WHICH PROVIDES SUBSTANTIAL COMMUNITY BENEFIT THROUGH THE PROVISION OF A COMPREHENSIVE SPECTRUM OF HEALTHCARE SERVICES TO THE RESIDENTS OF PENNSYLVANIA AND NEW JERSEY AND SURROUNDING COMMUNITIES. ST. LUKE'S HEALTH NETWORK, INC. ENSURES THAT ITS NETWORK PROVIDES EMERGENCY AND MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. THE NETWORK'S ACTIVE HOSPITALS INCLUDE: ST. LUKE'S ALLENTOWN CAMPUS, ST. LUKE'S ANDERSON CAMPUS, ST. LUKE'S BETHLEHEM CAMPUS, ST. LUKE'S CARBON CAMPUS, ST. LUKE'S EASTON CAMPUS, ST. LUKE'S LEHIGHTON CAMPUS, ST. LUKE'S MINERS CAMPUS, ST. LUKE'S MONROE CAMPUS, ST. LUKE'S SACRED HEART CAMPUS, ST. LUKE'S UPPER BUCKS CAMPUS AND ST. LUKE'S WARREN CAMPUS. EACH OF THESE HOSPITALS OPERATE CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN INTERNAL REVENUE SERVICE ("IRS") REVENUE RULING 69-545: 1) PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2) OPERATES AN ACTIVE EMERGENCY DEPARTMENT FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3) MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4) CONTROL RESTS WITH ITS BOARD OF TRUSTEES AND THE BOARD OF TRUSTEES OF ST. LUKE'S HEALTH NETWORK, INC. BOTH BOARDS ARE COMPRISED OF A MAJORITY OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND 5) SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE, PROGRAMS AND ACTIVITIES. ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA ---------------------------------------------- ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA IS COMPRISED OF FOUR ACUTE CARE NON-PROFIT HOSPITAL CAMPUSES: (1) ST. LUKE'S ALLENTOWN CAMPUS LOCATED IN ALLENTOWN, PENNSYLVANIA; (2) ST. LUKE'S BETHLEHEM CAMPUS LOCATED IN BETHLEHEM CAMPUS LOCATED IN BETHLEHEM, PENNSYLVANIA; (3) ST. LUKE'S SACRED HEART CAMPUS LOCATED IN ALLENTOWN, PENNSYLVANIA; AND (4) ST. LUKE'S LEHIGHTON CAMPUS LOCATED IN LEHIGHTON, PENNSYLVANIA. ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. ST. LUKE'S AIRMED, LLC ---------------------- A LIMITED LIABILITY COMPANY DISREGARDED FOR FEDERAL INCOME TAX PURPOSES OWNED BY ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA. THIS ENTITY IS CURRENTLY INACTIVE. ST. LUKE'S HOMESTAR SERVICES, LLC --------------------------------- A LIMITED LIABILITY COMPANY DISREGARDED FOR FEDERAL INCOME TAX PURPOSES OWNED BY ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA. THE ORGANIZATION SUPPORTS THE HEALTH CARE SYSTEM; PRIMARILY ITS TAX-EXEMPT ACUTE CARE HOSPITALS, WHICH PROVIDE MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. THIS ORGANIZATION ENGAGES IN HEALTHCARE SERVICES WHICH ARE HIGH QUALITY AND COST EFFECTIVE FOR THE BENEFIT OF THE COMMUNITY AND IN SUPPORT OF THE CHARITABLE PURPOSES OF THE HEALTH CARE SYSTEM. POCONO MRI IMAGING AND DIAGNOSTIC CENTER, LLC --------------------------------------------- A LIMITED LIABILITY COMPANY DISREGARDED FOR FEDERAL INCOME TAX PURPOSES OWNED BY ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA. THIS ENTITY IS CURRENTLY INACTIVE. EVANTAGE HEALTH, LLC -------------------- A LIMITED LIABILITY COMPANY DISREGARDED FOR FEDERAL INCOME TAX PURPOSES OWNED BY ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA. THIS ENTITY IS CURRENTLY INACTIVE. ST. LUKE'S CARE, LLC -------------------- A LIMITED LIABILITY COMPANY DISREGARDED FOR FEDERAL INCOME TAX PURPOSES OWNED BY ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA. THE ORGANIZATION SUPPORTS THE HEALTH CARE SYSTEM; PRIMARILY ITS TAX-EXEMPT ACUTE CARE HOSPITALS, WHICH PROVIDE MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. THIS ORGANIZATION ENGAGES IN HEALTHCARE SERVICES WHICH ARE HIGH QUALITY AND COST EFFECTIVE FOR THE BENEFIT OF THE COMMUNITY AND IN SUPPORT OF THE CHARITABLE PURPOSES OF THE HEALTH CARE SYSTEM. ST. LUKE'S SHARED SAVINGS PLAN, LLC ----------------------------------- A LIMITED LIABILITY COMPANY DISREGARDED FOR FEDERAL INCOME TAX PURPOSES OWNED BY ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA. THIS ENTITY IS LOCATED IN ALLENTOWN PENNSYLVANIA. THE ORGANIZATION IS CURRENTLY INACTIVE. QUALITY PATIENT CARE, LLC ------------------------- A LIMITED LIABILITY COMPANY DISREGARDED FOR FEDERAL INCOME TAX PURPOSES OWNED BY ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA. THE ORGANIZATION IS CURRENTLY INACTIVE. MAHONING SELF STORAGE, LLC -------------------------- A LIMITED LIABILITY COMPANY DISREGARDED FOR FEDERAL INCOME TAX PURPOSES OWNED BY ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA. THE ORGANIZATION SUPPORTS THE HEALTH CARE SYSTEM; PRIMARILY ITS TAX-EXEMPT ACUTE CARE HOSPITALS, WHICH PROVIDE MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. ST. LUKE'S HOSPITAL ANDERSON CAMPUS ----------------------------------- ST. LUKE'S HOSPITAL ANDERSON CAMPUS IS AN ACUTE CARE NON-PROFIT HOSPITAL LOCATED IN EASTON, PENNSYLVANIA. ST. LUKE'S HOSPITAL ANDERSON CAMPUS IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, ST. LUKE'S HOSPITAL ANDERSON CAMPUS OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. ST. LUKE'S HOSPITAL - CARBON CAMPUS ----------------------------------- ST. LUKE'S HOSPITAL - CARBON CAMPUS IS AN ACUTE CARE NON-PROFIT HOSPITAL RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, SACRED HEART HOSPITAL OF ALLENTOWN OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. ST. LUKE'S HOSPITAL - EASTON CAMPUS ----------------------------------- ST. LUKE'S HOSPITAL - EASTON CAMPUS IS AN ACUTE CARE NON-PROFIT HOSPITAL LOCATED IN EASTON, PENNSYLVANIA. ST. LUKE'S HOSPITAL - EASTON CAMPUS IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, SACRED HEART HOSPITAL OF ALLENTOWN OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. ST. LUKE'S HOSPITAL MONROE CAMPUS ---------------------------------- ST. LUKE'S HOSPITAL MONROE CAMPUS IS AN ACUTE CARE NON-PROFIT HOSPITAL LOCATED IN STROUDSBURG, PENNSYLVANIA. ST. LUKE'S HOSPITAL MONROE CAMPUS IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, ST. LUKE'S HOSPITAL MONROE CAMPUS OPERATES CONSISTENTLY WITH SCHEDULE H, PART VI; QUESTION 7 NOT APPLICABLE. THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN PENNSYLVANIA AND NEW JERSEY. NO COMMUNITY BENEFIT REPORT IS REQUIRED TO BE FILED WITH EITHER PENNSYLVANIA OR NEW JERSEY. true SCHOLARSHIPS 6 6725 SCHEDULE I, PART I; QUESTION 2 GRANTS ARE MONITORED BY THE NETWORK'S FINANCE PERSONNEL THROUGH THE UTILIZATION OF COST CENTERS AND OTHER INFORMATION; INCLUDING WRITTEN DOCUMENTATION AND RECEIPTS. X X X X X false true false false false true true true false Robert Grob DO Secretary/Treasurer-Trustee 0 706877 0 48060 0 690 0 7625 0 45235 0 808487 0 0 Francine M Botek Trustee 0 352765 0 94261 0 85998 0 64808 0 24880 0 622712 0 0 William M Markson MD Trustee- VP Medical Affairs 0 529527 0 0 0 1980 0 7625 0 22871 0 562003 0 0 Nicholas M Varvarelis DO Trustee 0 485592 0 7124 0 9953 0 7625 0 31495 0 541789 0 0 CORE FORM, PART VII AND SCHEDULE J TAXABLE COMPENSATION REPORTED HEREIN IS DERIVED FROM 2022 FORMS W-2. SCHEDULE J, PART I; QUESTION 3 COMPENSATION REVIEW ------------------- EXECUTIVE COMPENSATION FOR THE HEALTH NETWORK CONSISTS OF FIXED SALARY, AT-RISK COMPENSATION AND OTHER DEFERRED COMPENSATION ARRANGEMENTS. TOTAL COMPENSATION FOR NETWORK EXECUTIVES IS APPROVED ANNUALLY BY THE NETWORK'S BOARD OF TRUSTEES. THE RECOMMENDED COMPENSATION IS ESTABLISHED THROUGH A MULTI-FACETED APPROACH INCLUDING USE OF AN INDEPENDENT CONSULTANT ENGAGED ON AN ONGOING BASIS BY THE BOARD OF TRUSTEES AND WHO WORKS DIRECTLY WITH THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD. ALSO INCLUDED IS THE REVIEW OF FORMS 990 AND COMPENSATION SURVEYS OF OTHER COMPARABLE HEALTHCARE ORGANIZATIONS. BONUS/INCENTIVE --------------- THE AT-RISK COMPENSATION IS APPROVED BY THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD AND IS BASED ON SEVERAL QUALITATIVE AND QUANTITATIVE COMPONENTS, INCLUDING JOINT COMMISSION, PENNSYLVANIA DEPARTMENT OF HEALTH AND PENNSYLVANIA TRAUMA SYSTEMS FOUNDATION ACCREDITATIONS, EVIDENCE-BASED HOSPITAL PROCESS OF CARE MEASURES, OUTCOME MEASURES, SUCH AS PATIENT SATISFACTION, MORTALITY RATE, AND LENGTH OF STAY; EFFICIENCY MEASURES AS DEMONSTRATED BY COST-PER-ADJUSTED DISCHARGE AND NET INCOME. OTHER REPORTABLE COMPENSATION ----------------------------- OTHER BENEFITS INCLUDE DEFERRED COMPENSATION BENEFITS THAT HAD ACCUMULATED OVER YEARS OF SERVICE AND WAS REPORTED AND DISTRIBUTED IN ACCORDANCE WITH VESTING REQUIREMENTS AND INTERNAL REVENUE SERVICE RULES AND REGULATIONS. DEFERRED COMPENSATION --------------------- DEFERRED COMPENSATION REPRESENTS RETIREMENT BENEFITS EARNED DURING THE REPORTING PERIOD, NOT RECOGNIZED AS COMPENSATION ON THE EMPLOYEE'S 2022 FORM W-2. NONTAXABLE BENEFITS ------------------- NONTAXABLE BENEFITS REPRESENTS HEALTH AND WELFARE BENEFITS RECEIVED DURING THE REPORTING PERIOD, NOT RECOGNIZED AS COMPENSATION ON THE EMPLOYEE'S 2022 FORM W-2. COMPENSATION REPORTED ON PRIOR 990 ---------------------------------- TOTAL COMPENSATION REPORTED ON PRIOR FORMS 990 REPRESENTS RECOGNITION OF DEFERRED COMPENSATION BENEFITS THAT HAD ACCUMULATED OVER YEARS OF SERVICE AND WAS REPORTED AND DISTRIBUTED IN ACCORDANCE WITH VESTING REQUIREMENTS AND INTERNAL REVENUE SERVICE RULES AND REGULATIONS. THESE AMOUNTS WERE PREVIOUSLY REPORTED IN SCHEDULE J, COLUMN C - RETIREMENT AND OTHER DEFERRED COMPENSATION. SCHEDULE J, PART I; QUESTION 4B THE AMOUNT REFLECTED IN SCHEDULE J, PART II, COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL INCLUDES AMOUNTS RELATED TO VESTED CAPITAL ACCUMULATION FOR POST-RETIREMENT DEATH BENEFITS. THE AMOUNT OUTLINED HEREIN WAS INCLUDED IN HER 2022 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: FRANCINE M. BOTEK, $63,518. THE DEFERRED COMPENSATION AMOUNT REFLECTED IN SCHEDULE J, PART II, COLUMN C FOR THE FOLLOWING INDIVIDUAL INCLUDES UNVESTED BENEFITS IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") WHICH ARE SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUAL MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNT OUTLINED HEREIN WAS NOT INCLUDED IN HER 2022 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: FRANCINE M. BOTEK, $43,458. SCHEDULE J, PART I; QUESTIONS 6A AND 6B THE EXECUTIVE COMPENSATION PACKAGE FOR THE HEALTH NETWORK CONSISTS OF BOTH A FIXED SALARY AND ADDITIONAL AT-RISK COMPENSATION THAT IS BASED ON SEVERAL QUALITATIVE AND QUANTITATIVE COMPONENTS. THE COMPONENTS OF THE AT-RISK COMPENSATION PLAN INCLUDES JCAHO, DEPARTMENT OF HEALTH AND TRAUMA CENTER ACCREDITATIONS, EVIDENCE BASED HOSPITAL PROCESS OF CARE MEASURES, OUTCOME MEASURES SUCH AS PATIENT SATISFACTION, MORTALITY RATE, LENGTH OF STAY, EFFICIENCY MEASURES AS DEMONSTRATED BY COST PER ADJUSTED DISCHARGE AND FINALLY NET INCOME. SCHEDULE J, PART I; QUESTION 7 CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS COMPENSATION DURING CALENDAR YEAR 2022 WHICH WAS INCLUDED IN SCHEDULE J, PART II, COLUMN B(II) HEREIN AND IN THE INDIVIDUAL'S 2022 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT. CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS St. Luke's Carbon Hospital opened on Nov. 20, 2021. The three-story 52-patient-room, 160,000 square-feet facility is the largest campus of its kind in the history of Carbon County and the first new hospital built in the county in 65 years. It is the centerpiece of the network's new 108-acre technologically advanced, multipurpose, rural medical and wellness complex. The hospital is recognized by the internal revenue service (IRS) as an internal revenue code section 501(c)(3) tax-exempt organization. Pursuant to its charitable purposes, St. Luke's Carbon Campus provides medically necessary healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, religion or ability to pay. Moreover, St. Luke's Carbon Campus operates consistently with the following criteria outlined in the IRS revenue ruling 69-545: 1) St. Luke's Carbon Campus provides medically necessary healthcare services to all individuals regardless of ability to pay, including charity care, self-pay, Medicare and Medicaid patients; 2) St. Luke's Carbon Campus operates an active emergency room for all persons; which is open 24 hours a day, seven days a week, 365 days per year; 3) St. Luke's University Health Network maintains an open medical staff, with privileges available to all qualified physicians; 4) Control of St. Luke's Carbon Campus rests with its Board of Directors and the Board of Trustees of St. Luke's Health Network, Inc., D.B.A. St. Luke's University Health Network. All boards comprise a majority of independent civic leaders and other prominent members of the community, as well as physicians on the hospital/network medical staff; and 5) Surplus funds are used to improve the quality of patient care, expand and renovate facilities and advance medical care programs and activities. The operations of St. Luke's Carbon Campus, as shown through the factors outlined above and other information contained herein, clearly demonstrate that the use and control of St. Luke's Carbon Campus is for the benefit of the public and that no part of the income or net earnings of the organization inures to the benefit of any private individual, nor is any private interest being served other than incidentally. Mission ======= The mission of St. Luke's Carbon Campus is to care for the sick and injured and improve our community's health regardless of a patient's ability to pay. Vision ====== The vision of St. Luke's Carbon Campus is to be the preferred hospital in Carbon County for high-quality, cost-effective care and outstanding service. The mission will be accomplished by the following: - Making the patient our highest priority. - Promoting healthy lifestyles and continuously improving care provided to heal the sick and injured. - Coordinating and integrating services into a seamless, easily accessible system of care. - Improving the level of service provided throughout the network. - Ensuring all health care services are relevant to the needs of the community. - Striving to maximize the satisfaction of our patients, employees, medical staff and volunteers and, - Training allied health professionals, nursing and medical students and residents and fellows and attracting them to practice within our network's service area. Overview ======== St. Luke's Carbon Campus underscores St. Luke's commitment to the health and well-being of the community. The campus provides quality services that keep people healthy physically, emotionally and spiritually and ultimately enhance the health status of area residents. Located off Harrity Road in Franklin Township, Lehighton, the campus ensures that ill and injured patients can receive excellent care close to home. In FY 23, St. Luke's Carbon Campus provided care for 4,120 admissions and observations, 20,578 emergency department visits and 26,827 outpatient visits. St. Luke's Carbon Campus redefines healthcare access, convenience and quality. Onsite, there is a 30-bed emergency room, 24/7 critical care with 12 intensive care beds, with four step-down beds, state-of-the-art operating rooms and the region's most advanced radiology and diagnostic technology. Patient rooms are private and each is outfitted with a wall-mounted, 55-inch smart TV to facilitate two-way audio/visual communication between patients and their providers anywhere, as well as patients and their family members worldwide. Real-time computer system-linked digital whiteboards in the patient rooms display the names of the patient's caregivers, day of the week, scheduled activities and other useful safety information. First-of-its-kind life-aire air purification systems installed in the air ducts throughout the hospital's treatment areas kill air pathogens, including COVID-19 and anthrax, making it one of the few hospitals in the nation with this novel technology. To meet the high demand from area residents for quality emergency services. St. Luke's Carbon Campus broke ground in January 2022 to expand the number of beds in its emergency department (ed) to 30 rooms. The expanded ER opened in October 2022. Among the features of the state-of-the-art St. Luke's Carbon Campus ED, each room: - Is private - Has cardiac monitors - Is equipped with a bed that can weigh patients for calculating prescription dosages; and - Has a television to help patients pass the time while waiting for test results and treatment. From the day it opened, St. Luke's Carbon Campus has been embraced by the public. In the first year of operations, the hospital (1) became an accredited Chest Pain Center by the American College Of Cardiology; (2) was designated a Level IV Trauma Center by the Pennsylvania Trauma Systems Foundation; and (3) sustained top quartile performance in patient experience. In FY 23, St. Luke's Carbon Campus invested $7 million to expand its inpatient capacity to 52 rooms (previously 40) and to open a third operating room. These projects were due to increased demand and capacity needs at the campus. The FY 22 highlights include the first combined mastectomy and breast implant in March. St. Luke's University Health Network has continued to invest in St. Luke's Carbon Campus to improve both quality of and access to care. St. Luke's Carbon Campus works closely with St. Luke's Lehighton Campus in meeting the community's health care needs. St. Luke's Carbon Campus is home to outpatient services, the summit nursing facility and patient acute rehabilitation center (arc), along with additional physician offices. The campus is also home to The Adult and Older Adult Behavioral Health Units and St. Luke's Psychiatric Associates - Lehighton. In the summer of 2022, St. Luke's opened the region's first behavioral health walk-in outpatient center. Open every day, patients 14 and older can seek help with conditions such as anxiety, panic attacks, depression, grief, thoughts of self-harm, mood swings, anger and school phobia in a comfortable, non-intimidating environment. Patients must come willingly. In FY 2022, the Carbon County Veteran's Affairs Office opened a satellite office at St. Luke's Lehighton campus. Carbon County with approximately 5,000 veterans, has led the state in veteran suicides, according to Center for Rural Pennsylvania Data. Locating the office in a hospital facilitates and encourages veterans coping with behavioral health issues to seek help available at the campus. Community Outreach ================== St. Luke's University Health Network (SLUHN) conducts a Community Health Needs Assessment (CHNA) every three years as part of the Patient Protection and Affordable Care Act. Through our analysis of primary and secondary data, as well as the CHNA key informant interviews, forums, and surveys with community members, we see significant issues facing our communities that impede healthy lifestyles. Our efforts in prevention, care transformation, research, and partnerships help support our work to implement sustainable initiatives that focus on a wide range of health and quality of life outcomes. Through collaborations with community and Network partners, the Department of Community Health aims to promote a more equitable society with better health outcomes, especially within the Network's most vulnerable populations. Community Health Liaisons and Community Health Workers (CHW) help to build trust to improve access to care, services, and resources. Pathways have been established and strengthened to connect families to primary care, social services, food access, financial literacy, career mentoring and workforce development. St. Luke's Community Health's mission is to create pathways for equity toward measurable health outcomes through advocacy, access, and navigation of resources for partners and underserved communities. We envision a community where everyone has access to exceptional healthcare built on a foundation of trust and compassion. CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS St. Luke's partners with local schools, civic, and community organizations to improve the health of Carbon County residents and the surrounding area. St. Luke's Carbon and Lehighton Campuses supports the Community Health Needs Assessment (CHNA) priority areas that are identified within the campus service area by collecting and analyzing data and community input. The St. Luke's Lehighton and Carbon Campuses State of the Community CHNA findings meeting was held on November 16, 2022, and engaged 40 local partners. Partner input and feedback was integrated into the strategy and response for implementing evidence-based community health initiatives in the communities we serve. The overarching top priority that emerged from the results of the 2022 CHNA was access to care. This prioritizes access to primary care, mental health, dental care, and other services, with an emphasis on promoting connections to care for underserved communities. Strategies to target vulnerable populations include a comprehensive approach in our urban and rural communities and school-based efforts in high-need schools and school districts. Schools serve as a hub in the community and provide sustainable access points to connect with students, families, and the surrounding community. Overall assessment results highlight three main priority focus areas for our community health initiatives that include improving access to care, preventing chronic disease, and improving mental and behavioral health. Improving Access to Care ------------------------ St. Luke's partnership with findhelp, a free self-navigating online platform, that continues to expand its reach to provide community members in need with connections to care, education, and resources in their local community at low or no-cost. findhelp (sluhn.findhelp.com) is a social care network established to provide a comprehensive platform for people to find social services in their communities and for nonprofit and other community-based organizations to coordinate their service delivery and support services. St. Luke's University Health Network's Information Technology, Quality, Case Management, and Department of Community Health work collaboratively, especially with Star Community Health and more than 200 established (i.e., claimed) community-based partners in the communities we serve. The self-navigating online platform allows community members to search and connect to Social Determinants of Health (SDOH) support such as financial assistance, food pantries, medical care, transportation, among others. This platform, as well as United Way's 211, are tools to assist our community members, patients, and staff to connect to vital resources. Community Health continues to onboard priority partners to ensure accurate and up-to-date resources are available to our communities. St. Luke's promotes literacy in Carbon County through the evidence-based Reach Out and Read (ROR) program in partnership with Carbon County Community Foundation. ROR is integrated into our Carbon County pediatric and family medicine practices to engage families during each well patient visit. In addition, Brush, Book, Bed (BBB), an American Academy of Pediatrics initiative to engage families on the importance of a regular bedtime routine, is integrated to promote oral health, literacy, and healthy lifestyles and behaviors. The Dolly Parton Imagination Library initiative, also funded by the Carbon County Community Foundation, further supports literacy and provides age-appropriate books for all Carbon County children enrolled. During FY 23, participating St. Luke's Physician Group pediatrics and family medicine practices completed 1,520 well- visits for children ages 0-5 years in which trained providers and staff engaged families with messaging and resources vital for growth and development. The Dolly Parton Imagination Library initiative added 321 new children this past year. Since July 2021, when the program was launched, 1,274 Carbon County children have engaged and received age-appropriate books each month. Of those children, 355 have "graduated," meaning they aged-out of the program (i.e., reached age six). Additionally, literacy promotion through Read Across America was implemented at local schools along with the Veterans literacy imitative at the St. Luke's Lehighton Campus as well as Little Free Libraries. St. Luke's Community Health partners with the Carbon County Interagency Collaborative to provide consistent communications and support. More than 100 Carbon County social service organizations and nonprofit partners are represented, with over 35 regularly contributing to collaborative meetings. The committee identifies gaps, barriers, and opportunities and prioritizes how to best align existing services and strengthen connections to care, education, and resources. Additionally, several subcommittees and initiatives are established to build capacity for key community needs (e.g., transportation, literacy, early childhood education, prevention efforts). St. Luke's University Health Network (SLUHN) school-based staff provide services to students and families in the Panther Valley School District (PVSD) and our Community Health Workers (CHW) help support programs and initiatives at Carbon County School Districts. St. Luke's staff also help to implement a food pantry for PVSD families facing food insecurity. In collaboration with the St. Luke's Rural Health Centers and with support from CHWs, connections to care were established to improve access to school physicals, vaccinations, education, and resources. The Star Community Health Dental Van partnered with 10 local schools during FY 23 providing 1,936 visits, 3,170 sealants, and 478 restorations. The Carbon County schools the dental van visits are Panther Valley Elementary, Intermediate, and High School, SS Palmer Elementary School, Weatherly Elementary School, Behavioral Health Associates (BHA), and PathStone Lehighton Head Start. Priorities in Panther Valley School District (PVSD) aligned with the Community School Model to connect students and their families to a medical home, vision, dental, behavioral health services, and other social services. During FY 23, through the Mobile Youth Health Centers, 88 unique students were provided care and services through 95 encounters and consistent connection to care with school-based coordinators. St. Luke's Carbon Campus partners with PathStone Head Start to provide support connection to care services for young families in need. As the COVID-19 pandemic started to decline during FY 23, the Department of Community Health continued to provide updated information and guidelines as well as provide vaccine confidence for local communities. Preventing Chronic Disease -------------------------- St. Luke's Community Supported Agriculture (CSA) donated 86 shares of fresh fruits and vegetables from the St. Luke's Anderson Rodale Organic Farm to PathStone Head Start families. The Panther Valley Community Food Pantry was held monthly at Panther Valley Elementary and parent outreach services were provided at the pantry. The Rural Health Center food access partnership was implemented to improve patient intake of fresh produce to help support healthy eating habits. The VALOR Foundation Stand Down Lansford quarterly food access support service was another food access location. Get Your Tail on the Trail held events across the Network, with more than 14,000 individuals participating Network-wide. Improving Mental and Behavioral Health -------------------------------------- St. Luke's Substance Use Disorder (SUD) Response Warm Hand Off (WHO) initiative was implemented during FY 23 at the Carbon and Lehighton Campuses in collaboration with Carbon/Monroe Substance Use Task Force and Emergency Departments. The Department of Community Health worked with partners to deliver a Community Stigma Presentation for Carbon and Schuylkill Counties and 106 participants attended. Narcan Education and Distribution was provided during FY 23 to 169 community members in Carbon and Schuylkill Counties. Safe Medication Disposal boxes continued to provide a space to dispose of unwanted medicines at the St. Luke's Carbon Campus. During FY 23, 181.2 pounds of unused medication were safely disposed. St. Luke's Lehighton Campus provides access to mental health services through the walk-in behavioral health center as well as Veterans services through the County's Veterans Office. Weekly positive messaging and resource newsletters were distributed via school email blasts and social media. A Rural Health Center Social Worker provided support services and connections to mental and behavioral health services for students, families, and community members. Through our Community School partnerships, Your Emotional Strength Supported (YESS!) school-based mental health counseled 50 students at PVSD and 21 students at Weatherly School District. CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS - Partnership Collaboration: - Area Health Education Center (AHEC) - Blue Mountain Ski Resort Community partnership - Carbon County Area Agency on Aging - Carbon County KidZone for injury prevention and education - Carbon County Interagency Collaborative Council - Carbon County Technical Institute, Lehigh County Community - College and Carbon County CareerLink Career Mentoring Committee - Carbon County Veteran Affairs collaboration - Houser Newman Vision Vouchers at Panther Valley and Weatherly School Districts - Panther Valley, Lehighton, Palmerton, Jim Thorpe and Weatherly Community Partnerships for Health Education and Wellness Committee Support - PathStone Head Start partnership since 2014 for health education and wellness support including physical and mental and behavioral health resources - Pennsylvania State Police Collaborative Sponsorship =========== In FY 23, St. Luke's Carbon Campus provided community sponsorships to the following organizations serving our mutual community populations in need: - Blue Mountain Resort - Blue Mountain School District - Bo Thach Foundation - Carbon County Community Foundation - Bowmanstown Area Residents Connected (BARC) - Boyertown Area School District - Carbon County Community Foundation - City of Hazleton Parks & Rec - Dream Come True, Blue Ridge Chapter - Hippie 5K - Lehigh Carbon Community College - Lehighton Area School District - North Schuylkill School District - Northern Lehigh Area School District - Palmerton Area School District - Schuylkill Haven School District - Schuylkill League, In. - Tamaqua's Safer Streets for Little Feet Volunteers ========== In FY 23, St. Luke's Carbon Campus volunteers provided 2,260 volunteer hours. CORE FORM, PART V; QUESTIONS 1A & 1B AND CORE FORM, PART VII THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. THE ORGANIZATION'S FORM 990 REFLECTS NO TOP FIVE INDEPENDENT CONTRACTORS FOR SERVICES AND REPORTS THAT NO FORMS 1099 WERE FILED WITH THE INTERNAL REVENUE SERVICE ("IRS"). ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA, A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION PAYS ALL OUTSTANDING ACCOUNTS PAYABLE INVOICES ON BEHALF OF THIS ORGANIZATION. IN CONJUNCTION WITH THIS SERVICE, ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA ALSO PREPARES AND ISSUES FORMS 1099 TO THESE VENDORS RECEIVING PAYMENTS WHERE APPLICABLE AND FILES THESE FORMS 1099 WITH THE IRS. ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA ALLOCATES THESE PAYMENTS TO THE ORGANIZATION VIA AN INTERCOMPANY ACCOUNT. IN ADDITION, THIS ORGANIZATION'S FORM 990 REFLECTS NO COMPENSATED INDIVIDUALS FROM THIS ENTITY. ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA ISSUES FORMS W-2 TO INDIVIDUALS WHO PROVIDE SERVICES AT ST. LUKES HOSPITAL CARBON CAMPUS, AND FILES THE APPLICABLE FORMS WITH THE INTERNAL REVENUE SERVICE. ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA ALLOCATES THESE PAYMENTS TO THIS ORGANIZATION VIA AN INTERCOMPANY ACCOUNT. CORE FORM, PART VI, QUESTION 3 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. SERVES AS THE PARENT ORGANIZATION OF THE NETWORK. ST. LUKE'S HEALTH NETWORK, INC. AND ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA; BOTH RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATIONS WITHIN THE NETWORK, PROVIDE VARIOUS CORPORATE RELATED SERVICES AND/OR PROVIDE CLINICAL AND SUPPORT PERSONNEL TO VARIOUS NETWORK ENTITIES; INCLUDING THIS ORGANIZATION. THE SERVICES MAY INCLUDE, BUT ARE NOT LIMITED TO, EXECUTIVE, LEGAL AND RISK MANAGEMENT, COMPLIANCE AND GOVERNANCE, HUMAN RESOURCES AND FINANCE (ACCOUNTING, PAYROLL, ACCOUNTS PAYABLE) AS WELL AS CLINICAL AND SUPPORT PERSONNEL. THE COSTS ASSOCIATED WITH THESE SERVICES ARE PAID FOR BY ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA ALLOCATES A PORTION OF THE COSTS FOR THESE CORPORATE SERVICES TO VARIOUS NETWORK ENTITIES SUBJECT TO APPROVAL BY ST. LUKE'S HEALTH NETWORK. IN ADDITION, THE ST. LUKE'S HEALTH NETWORK, INC. SENIOR MANAGEMENT PERSONNEL REPORTED ON THEIR RESPECTIVE PARENT FORM 990 ARE ISSUED FORMS W-2 FROM ST. LUKE'S HOSPITAL OF BETHLEHEM, PENNSYLVANIA. CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7 ST. LUKE'S HEALTH NETWORK, INC. IS THE SOLE MEMBER OF THIS ORGANIZATION. ST. LUKE'S HEALTH NETWORK, INC. HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF TRUSTEES AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. CORE FORM, PART VI, SECTION B; QUESTION 11B THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY (ITS BOARD OF TRUSTEES) PRIOR TO THE FILING WITH THE INTERNAL REVENUE SERVICE ("IRS"). IN ADDITION, THE ST. LUKE'S UNIVERSITY HEALTH NETWORK FINANCE COMMITTEE WAS UPDATED AS TO THIS ORGANIZATION'S CURRENT YEAR FORM 990 PRIOR TO FILING. ST. LUKE'S HEALTH NETWORK, INC. BOARD OF TRUSTEES DELEGATED TO THE FINANCE COMMITTEE THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION AND FILING PROCESS FOR THE TAX-EXEMPT AFFILIATES OF THE NETWORK. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CERTIFIED PUBLIC ACCOUNTING ("CPA") FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE NETWORK'S FINANCE PERSONNEL AND VARIOUS OTHER NETWORK INDIVIDUALS ("INTERNAL WORKING GROUP") TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE NETWORK'S INTERNAL WORKING GROUP FOR THEIR REVIEW. THE NETWORK'S INTERNAL WORKING GROUP REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE NETWORK'S INTERNAL WORKING GROUP FOR FINAL REVIEW AND APPROVAL PRIOR TO PRESENTATION OF THE FEDERAL FORM 990 TO THE MEMBERS OF THE ST. LUKE'S HEALTH NETWORK, INC. FINANCE COMMITTEE. THEREAFTER, THE FINAL FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO FILING WITH THE IRS. CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. THE NETWORK HAS A WRITTEN CONFLICT OF INTEREST POLICY AND REGULARLY MONITORS AND ENFORCES COMPLIANCE WITH THAT POLICY. THE POLICY REQUIRES THAT A CONFLICT OF INTEREST DISCLOSURE FORM CONSISTENT WITH BEST GOVERNANCE PRACTICES AND INTERNAL REVENUE SERVICE GUIDELINES BE CIRCULATED TO OFFICERS, TRUSTEES, BOARD COMMITTEE MEMBERS AND SENIOR MANAGEMENT ANNUALLY. THE NETWORK'S COMPLIANCE DEPARTMENT, INCLUDING ITS CORPORATE COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT/GENERAL COUNSEL, ASSUME RESPONSIBILITY FOR THE COMPLETION OF THE CONFLICT OF INTEREST QUESTIONNAIRES AND ENFORCEMENT WITH THE POLICY. IF A TRUSTEE DISCLOSES AN INTEREST THAT COULD GIVE RISE TO A CONFLICT, THE TRUSTEE'S POTENTIAL CONFLICT MAY BE DISCLOSED TO THE ORGANIZATION'S GOVERNING BODY, WHICH EVALUATES THE CONFLICT AND ITS POTENTIAL IMPACT ON THE TRUSTEE'S PARTICIPATION ON THE BOARD. AFTER CONSULTATION AND DISCUSSION THE BOARD OF TRUSTEES MAY TAKE ACTION, IF APPROPRIATE AND NECESSARY, TO ADDRESS ANY SUCH CONFLICT IN A MANNER CONSISTENT WITH THE NETWORK'S CONFLICT OF INTEREST POLICY. CORE FORM, PART VI, SECTION B; QUESTION 15 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. COMPENSATION REVIEW EXECUTIVE COMPENSATION FOR THE NETWORK CONSISTS OF FIXED SALARY, AT-RISK COMPENSATION AND OTHER DEFERRED COMPENSATION ARRANGEMENTS. TOTAL COMPENSATION FOR NETWORK EXECUTIVES IS APPROVED ANNUALLY BY THE NETWORK'S BOARD OF TRUSTEES. THE RECOMMENDED COMPENSATION IS ESTABLISHED THROUGH A MULTI-FACETED APPROACH INCLUDING USE OF AN INDEPENDENT CONSULTANT ENGAGED ON AN ONGOING BASIS BY THE BOARD OF TRUSTEES AND WHO WORKS DIRECTLY WITH THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD. ALSO INCLUDED IS THE REVIEW OF FORMS 990 AND COMPENSATION SURVEYS OF OTHER COMPARABLE HEALTHCARE ORGANIZATIONS. PLEASE REFER TO THE SCHEDULE J, PART III RESPONSE TO SCHEDULE J, PART I, QUESTION 3 FOR ADDITIONAL INFORMATION. CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE COMMONWEALTH OF PENNSYLVANIA. CORE FORM, PART VII AND SCHEDULE J CORE FORM, PART VII AND SCHEDULE J REFLECT CERTAIN INDIVIDUALS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM A RELATED ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THIS ORGANIZATION OR A RELATED ORGANIZATION AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF TRUSTEES. CORE FORM, PART VII AND SCHEDULE J ROBERT GROB, D.O., FRANCINE M. BOTEK, WILLIAM M. MARKSON, M.D., NICK M. VARVARELIS, D.O. AND ALDO CARMONA, M.D. ARE VOTING MEMBERS OF THIS ORGANIZATION'S BOARD OF TRUSTEES; AN UNCOMPENSATED POSITION. THESE INDIVIDUALS ARE NOT COMPENSATED FOR SERVING AS VOTING MEMBERS OF THE ORGANIZATION'S GOVERNING BODY. SCOTT R. WOLFE IS THE SENIOR VICE PRESIDENT OF FINANCE/CHIEF FINANCIAL OFFICER OF THE NETWORK. MR. WOLFE IS INCLUDED ON THIS FORM 990 BECAUSE DURING THE FISCAL YEAR ENDED JUNE 30, 2023 HE SERVED AS THE TOP FINANCIAL OFFICIAL OF ST. LUKE'S UNIVERSITY HEALTH NETWORK. DR. GROB, DR. MARKSON AND MR. VARVARELIS RECEIVE A FEDERAL FORM W-2 FROM ST. LUKE'S PHYSICIAN GROUP, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. MS. BOTEK, DR. CARMONA and Mr. Wolfe all receive a federal form w-2 from St. Luke's hospital of Bethlehem Pennsylvania; a related internal revenue code section 501(c)(3) tax-exempt organization. DR. CARMONA and Mr. Wolfe's reportable compensation, retirement/other deferred compensation and non-taxable benefits are reported within Core Form, Part VII and Schedule J of the St. Luke's Health Network, Inc. (EIN: 23-2384282) Federal Form 990. Please refer to the St. Luke's Health Network, Inc. Federal form 990 for this information. JOHN L. NESPOLI, PRESIDENT OF St. Luke's Carbon and Lehighton Campus, IS INCLUDED AS AN OFFICER WITHIN THIS ORGANIZATION'S FEDERAL FORM 990. MR. NESPOLI RECEIVES A FEDERAL FORM W-2 FROM ST. LUKE'S HOSPITAL OF BETHLEHEM PENNSYLVANIA. MR. NESPOLI'S REPORTABLE COMPENSATION, RETIREMENT/OTHER DEFERRED COMPENSATION AND NON-TAXABLE BENEFITS ARE REPORTED WITHIN CORE FORM, PART VII AND SCHEDULE J OF ST. LUKE'S HOSPITAL OF BETHLEHEM PENNSYLVANIA (EIN: 23-1352213) FEDERAL FORM 990. PLEASE REFER TO THE ST. LUKE'S HOSPITAL OF BETHLEHEM PENNSYLVANIA FORM 990 FOR THIS INFORMATION. CORE FORM, PART VII, SECTION A, COLUMN B THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. CERTAIN BOARD OF TRUSTEE MEMBERS AND OFFICERS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES WITHIN THE NETWORK. THE HOURS SHOWN ON THIS FORM 990 FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENTS THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF TRUSTEES OF OTHER RELATED ORGANIZATIONS WITHIN THE NETWORK, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE APPROXIMATELY THE SAME AS REFLECTED ON CORE FORM, PART VII OF THIS FORM 990. THE HOURS REFLECTED ON CORE FORM, PART VII OF THIS FORM 990, FOR INDIVIDUALS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, PAID OFFICERS AND KEY EMPLOYEES, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF THE NETWORK; NOT SOLELY THIS ORGANIZATION. CORE FORM, PART XI; QUESTION 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES INCLUDE: - RESTRUCTURING COSTS - ($11,194); - NET ASSETS RELEASED FROM RESTRICTIONS FOR PPE - $785,000; - NEW PLEDGES - $184,997; - PLEDGES RECEIVED - ($116,349); - LOSS ON RETIREMENT/PURCHASE OF BONDS - ($640,817); - NET ASSETS RELEASED FROM RESTRICTIONS FOR OPERATIONS - ($88,126); AND - ALLOWANCE FOR PLEDGES WRITTEN OFF - ($2,059). CORE FORM, PART XII; QUESTION 2 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF THE TAXPAYER AND ITS CONTROLLED AFFILIATES FOR THE YEARS ENDED JUNE 30, 2023 AND JUNE 30, 2022; RESPECTIVELY AND ISSUED A CONSOLIDATED FINANCIAL STATEMENT. AN UNMODIFIED OPINION WAS ISSUED EACH YEAR BY THE INDEPENDENT CPA FIRM. THE NETWORK'S FINANCE COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE NETWORK'S CONSOLIDATED FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT AUDITOR. ST LUKE'S HEALTH NETWORK INC 1110 ST LUKES WAY ALLENTOWN PA 18109 232384282 HEALTH SVCS. PA 501(C)(3) 12A NA false ST LUKE'S HOSPITAL OF BETHLEHEM PA 1110 ST LUKES WAY ALLENTOWN PA 18109 231352213 HEALTH SVCS. PA 501(C)(3) 3 SLHN false ST LUKE'S HOSPITAL MONROE CAMPUS 1110 ST LUKES WAY ALLENTOWN PA 18109 465143606 HEALTH SVCS. PA 501(C)(3) 3 SLHN false ST LUKE'S QUAKERTOWN HOSPITAL 1110 ST LUKES WAY ALLENTOWN PA 18109 231352203 HEALTH SVCS. PA 501(C)(3) 3 SLHN false CARBON-SCHUYLKILL COMMUNITY HOSPITAL 1110 ST LUKES WAY ALLENTOWN PA 18109 251550350 HEALTH SVCS. PA 501(C)(3) 3 SLHN false ST LUKE'S PHYSICIAN GROUP INC 1110 ST LUKES WAY ALLENTOWN PA 18109 232380812 HEALTH SVCS. PA 501(C)(3) 12A SLHN false ST LUKE'S EMERGENCY & TRANSPORT SVCS 1110 ST LUKES WAY ALLENTOWN PA 18109 232179542 HEALTH SVCS. 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NJ NA C CORP. false TWO RIVERS ENTERPRISES INC 185 ROSEBERRY STREET PHILLIPSBURG NJ 08865 521552606 REAL ESTATE NJ NA C CORP. false ST LUKE'S WARREN PHYSICIAN GROUP PC 865 MEMORIAL PARKWAY PHILLIPSBURG NJ 08865 223837316 HEALTHCARE SVCS. NJ NA C CORP. false SACRED HEART ANCILLARY SERVICES INC 421 W CHEW STREET ALLENTOWN PA 18102 232384987 HEALTHCARE SVCS. PA NA C CORP. false false false false false true false false false false false false false false true true true false true true SCHEDULE R, PART V THIS ORGANIZATION IS A MEMBER OF ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. FUNDS ARE ROUTINELY TRANSFERRED BETWEEN AFFILIATES AND BUSINESS ACTIVITIES ARE COMMON ON BEHALF OF THE SYSTEM'S AFFILIATES, INCLUDING THIS ORGANIZATION. THESE TRANSACTIONS MAY BE RECORDED ON THE REVENUE/EXPENSE AND BALANCE SHEET STATEMENTS OF THIS ORGANIZATION AND OTHER AFFILIATES. THESE ENTITIES WORK TOGETHER TO DELIVER HIGH QUALITY COST EFFECTIVE HEALTHCARE AND WELLNESS SERVICES TO THEIR COMMUNITIES REGARDLESS OF ABILITY TO PAY AND IN FURTHERANCE OF CHARITABLE TAX-EXEMPT PURPOSES.