2024-05-15T15:21:30-05:00 2023-06-30 882730877 CHERRY BEKAERT ADVISORY LLC 101 SOUTH 5TH STREET STE 2100 LOUISVILLE KY 40202 990 2022-07-01 452696517 ARH MARY BRECKINRIDGE HEALTH SERVICE INC ARHM 8592262440 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 BYRON GABBARD CFO 8592262440 2024-05-14 1 BYRON GABBARD 999009999 0 AMY DOSIK P00890743 8885871719 3 AAL1 IAL1 2022 2023-04-26 12:10:37Z HOLLIE HARRIS 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 122570471 0 X WWW.ARH.ORG X 2011 KY TO PROVIDE LESLIE, KNOX, MARTIN, AND SURROUNDING COUNTIES AN ABUNDANCE OF HEALTHCARE AND COMMUNITY-ORIENTED SERVICES THROUGH ITS HOSPITALS, CLINICS, AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES. 4 1 704 20 487186 96960 5648932 348 94497198 120439911 1807121 885887 350716 786085 102303967 122112231 167918 9228 0 0 39209021 44422648 0 0 0 42740549 44453356 82117488 88885232 20186479 33226999 86715083 136035450 28558961 39410673 58156122 96624777 X TO IMPROVE HEALTH AND PROMOTE WELL-BEING OF ALL THE PEOPLE IN CENTRAL APPALACHIA IN PARTNERSHIP WITH OUR COMMUNITIES. TO EARN THE CONFIDENCE AND TRUST OF THE DIVERSE COMMUNITIES WE SERVE BY OFFERING HEALTHCARE EXCELLENCE, DELIVERED WITH COMPASSION IN A TIMELY MANNER. 0 0 77335872 9228 119952725 ARH MARY BRECKINRIDGE HEALTH SERVICES PROVIDES LESLIE, KNOX, MARTIN, AND SURROUNDING COUNTIES AN ABUNDANCE OF HEALTHCARE AND COMMUNITY-ORIENTED SERVICES THROUGH ITS HOSPITALS, CLINICS, AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES. MARY BRECKINRIDGE ARH HOSPITAL HAS PROVIDED OUTSTANDING COMMUNITY EDUCATION IN STROKE PREVENTION AND WAS AWARDED THE "SERVICE AWARD" BY THE NORTON HEALTHCARE/UNIVERSITY OF KENTUCKY HEALTHCARE - STROKE CARE NETWORK.THE ANNUAL SERVICE AWARD IS EARNED FOR OUTSTANDING COMMUNITY EDUCATION AND PUBLIC AWARENESS EFFORTS. DESPITE THE CONTINUING CHALLENGES EXPERIENCED DURING THE PANDEMIC, MARY BRECKINRIDGE ARH HOSPITAL UTILIZED THE STROKE CARE NETWORK'S STROKE COMMUNITY OUTREACH, PREVENTION, AND EDUCATION (SCOPE) PROGRAM TO CONTINUE VITAL COMMUNITY EDUCATION AND SPREAD THE WORD ABOUT STROKE PREVENTION.AS ONE OF THE 37 AFFILIATE HOSPITALS IN THE STROKE CARE NETWORK, MARY BRECKINRIDGE ARH HOSPITAL HAS ACCESS TO NETWORKING WITH OTHER STROKE CARE CENTERS IN THE TRI-STATE AREA, AN ABUNDANCE OF EDUCATIONAL OFFERINGS AND RESOURCES, AND SUPPORT FROM HIGHER-LEVEL STROKE-CERTIFIED ORGANIZATIONS. MARY BRECKINRIDGE ARH HOSPITAL'S AFFILIATION AND PARTICIPATION WITHIN THE STROKE CARE NETWORK CONTRIBUTE TO THE NETWORK'S OVERALL MISSION OF STRENGTHENING THE STROKE SYSTEM OF CARE THROUGHOUT OUR REGION AS PART OF THE COMPANY'S EFFORT TO PROMOTE THE BENEFITS OF PREVENTATIVE CARE TOWARD GOOD HEALTH. ONE MAJOR EVENT THAT IS HELD EACH YEAR IS THE HOSPITAL'S ANNUAL CHILDREN'S CHRISTMAS PARTY, WHERE EACH CHILD IN THE COMMUNITY IS INVITED AND RECEIVES A GIFT AND A TREAT BAG. THIS YEAR THEY RECEIVED HOT CHOCOLATE, COOKIES, CAKE POP AND A TOBOGGIN AND GLOVES. WE ALSO HAD A VERY SUCCESSFUL TRUNK AND TREAT PARTY FOR THE CHILDREN IN THE FRONT PARKING LOT AT THE HOSPITAL WHICH WAS A HUGE SUCCESS IN OUR COMMUNITY.MARY BRECKINRIDGE ARH HAS REOPENED ITS SENIOR CARE UNIT WHICH PROVIDES MENTAL HEALTH COUNSELING AND INDIVIDUAL AND GROUP THERAPY FOR OUR SENIOR POPULATION THAT HAS LOST LOVED ONES, OR SPOUSE OR HAVE HAD TO DOWNSIZE IN ORDER STAY INDEPENDENT IN A SMALLER HOME. ANOTHER ADDITION IS THE RECRUITMENT OF KRISTEN FUGATE, BH APRN TO THE HYDEN ARH RURAL HEALTH CLINIC WHERE SHE OFFERS MENTAL HEALTH SERVICES FOR PATIENTS IN ALL AGE GROUPS. THIS IS ONE OF THE SERVICES THAT OUR COMMUNITY BENEFIT NEEDS ASSESSMENT RECOMMENDED THAT OUR COMMUNITY MEMBERS NEEDED. WE ARE HAPPY TO BE ABLE TO OFFER THIS SERVICE TO OUR COMMUNITY. MARY BRECKINRIDGE ARH WILL ALSO SOON OPEN ITS OUTPATIENT PULMONARY REHAB SERVICE WHICH IS GREATLY NEEDED IN OUR COMMUNITY AND OUR PATIENTS WILL BE ABLE TO ATTEND THE REHAB SERVICE OFFERED IN THEIR COMMUNITY WITHOUT HAVING TO DRIVE OUT OF OUR COUNTY TO OBTAIN THIS SERVICE.MARY BRECKINRIDGE ARH WAS ABLE TO CONTINUE WITH ITS COMMUNITY WIDE PICNIC WHICH IS HELD THE FIRST WEEKEND IN OCTOBER IN CONJUNCTION WITH THE MARY BRECKINRIDGE FESTIVAL. DESPITE RAINY CONDITIONS, THE HOSPITAL, WITH THE HELP OF THE LOCAL SHRINER'S CHAPTER WHO HELPED COOK, WAS ABLE TO PROVIDE MORE THAN 800 DINNERS TO COMMUNITY MEMBERS WHO ATTENDED. ADDITIONALLY, THE HOSPITAL CONTINUED ITS MAJOR HOLIDAY EVENT THAT IS HELD EACH YEAR - THE HOSPITAL'S ANNUAL CHILDREN'S CHRISTMAS PARTY, WHERE EACH CHILD IN THE COMMUNITY IS INVITED AND RECEIVES A GIFT AND A TREAT BAG.THE HOSPITAL CONTINUES ITS COMMUNITY OUTREACH EFFORTS BY WORKING WITH THE COMMUNITY'S YOUTH TO EDUCATE ABOUT THE EFFECTS OF TOBACCO AND TOBACCO PRODUCTS IN PARTNERSHIP WITH THE KENTUCKY RIVER HEALTH DEPARTMENT IN LESLIE COUNTY. 77335872 1 0 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 113 0 1 704 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 4 1 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 KY X BYRON GABBARD 8592262440 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 ANDREA MASSEY TRUSTEE 3.00 0.00 X 0 0 0 CHRISTI LEE CHIEF LEGAL COUNCIL 4.00 0.00 X 0 414126 16688 DANNY HARRIS TREASURER 4.00 36.00 X X 0 590197 28708 HOLLIE P HARRIS PRESIDENT/CEO 4.00 43.00 X X 0 1074400 35340 MARIA BRAMAN CHIEF MEDICAL OFFICER 3.00 37.00 X 0 551198 28428 BYRON GABBARD EXECUTIVE VP OF FINANCE 3.00 37.00 X 0 505015 27300 JAMES WEST HOSPITALIST 40.00 0.00 X 433832 0 0 JERRY WOOLUM FAMILY PHYSICIAN 40.00 0.00 X 370045 0 0 THOMAS MOORE GASTROENTEROLOGIST 40.00 0.00 X 578048 0 0 LARRY E WARREN FAMILY PHYSICIAN 40.00 0.00 X 408959 0 0 PETER KUMMANT GENERAL SURGEON 40.00 0.00 X 309417 0 0 2100301 3134936 136464 34 0 1 0 CARDIOSOLUTION LLC 4675 CORNELL ROAD CINCINNATI OH 45241 GENERAL INVASIVE SERVICES 2646199 SOUTHERN MEDICAL PARTNERS 101 AIRPORT GARDENS RD 129 HAZARD KY 41701 PHYSICIAN SERVICES 1299503 BEAVER CREEK EMERGENCY GROUP 11203 MAIN ST MARTIN KY 416497999 PHYSICIAN SERVICES 1246171 HYDEN EMERGENCY PHYSICIANS 130 KATE IRELAND DR HYDEN KY 41749 PHYSICIAN SERVICES 988976 TRIMEDX INC 5451 LAKEVIEW PW S DR INDIANAPOLIS IN 46268 EQUIPMENT MANAGEMENT 578447 14 348 348 LABORATORY REVENUE 621500 53098470 53083912 14558 PATIENT REVENUE 621110 51145955 51145955 HOSPITAL RATE IMPROVEMENT PROGRAM 900099 11502068 11502068 RETAIL PHARMACY REVENUE 456110 4693418 4220790 472628 120439911 1337633 1337633 6494 -6494 -6494 -6494 451746 -451746 -451746 -451746 MISCELLANEOUS 900099 578962 578962 CAFETERIA INCOME 900099 213617 213617 792579 122112231 119952725 487186 1671972 X 9228 9228 32994987 32938081 56906 1001402 997769 3633 8218861 8217817 1044 2207398 2202172 5226 8403541 7995279 408262 826290 826026 264 2698137 2698137 58157 58157 1288866 1288518 348 1598950 1598526 424 UBI TAXES 10062 10062 SUPPLIES 16655657 15140930 1514727 EQUIP RENTAL AND MAINTE 1345860 1345860 PROVIDER TAX 930585 930585 10637251 2019372 8617879 88885232 77335872 11549360 0 44269 554142 1579031 12276206 2003642 2050530 849777 765425 24782813 9622043 13821168 15160770 68417196 105228377 86715083 136035450 2509354 2564190 264168 263821 25785439 36582662 28558961 39410673 X 58156122 96624777 58156122 96624777 86715083 136035450 33226999 5241656 0 X X 0 1 X 1 0 X 0 0 0 0 0 0 0 0 1 3461 3461 0 PART II-B, LINE 1: MARY BRECKENRIDGE IS A MEMBER OF THE KENTUCKY HOSPITAL ASSOCIATION. THE AMOUNT REPORTED REPRESENTS THE PORTION OF DUES ATTRIBUTABLE TO LOBBYING EXPENSES. 237331 237331 8044437 2017608 6026829 8469459 7453918 1015541 8031586 150517 7881069 15160770 SECURITY DEPOSITS 42359 OPERATING LEASE RIGHT-OF-USE ASSETS 13382236 DUE FROM RELATED ORGANIZATIONS 91803782 105228377 REFUNDS DUE PATIENTS 1903584 SELF INSURANCE RESERVE 5736872 CAPITAL LEASE OBLIGATIONS 42407 MEDICARE AND MEDICAID ESTIMATED SETTLEMENTS 11350982 OTHER LIABILITIES 115775 OPERATING LEASE LIABILITY 13382236 MISCELLANEOUS NON-PATIENT LIABILITIES 3340263 HEALTH INSURANCE ACCRUAL 710543 36582662 X PART X, LINE 2: THE CORPORATION IS A NOT-FOR-PROFIT CORPORATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC) AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE IRC. HOWEVER, THE CORPORATION IS SUBJECT TO FEDERAL INCOME TAX ON ANY UNRELATED BUSINESS TAXABLE INCOME. GAAP REQUIRES THE CORPORATION TO EVALUATE ITS TAX POSITIONS AND RECOGNIZE A TAX LIABILITY (OR ASSET) IF IT HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS). THE CORPORATION HAS EVALUATED ITS TAX POSITIONS AND HAS CONCLUDED THAT THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY (OR ASSET) OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. THE CORPORATION IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS. 1 1 X 1 X 0 0 1 0 1 1 1467410 339751 1127659 0.01270 29482845 37914202 0 0.00000 30950255 38253953 1127659 0.01270 239 4201 73705 73705 0.00080 288 371 166598 166598 0.00190 40 0 0.00000 527 4572 240303 40 240303 0.00270 527 4572 31190558 38253993 1367962 0.01540 152 801 36156 36156 0.00040 16 159 661 661 0.00000 33 1016 7696 7696 0.00010 201 1976 44513 44513 0.00050 1 7653917 10116559 13555414 -3438855 X 1 1 3 1 ARH MARY BRECKINRIDGE HEALTH SERVICES INC 130 KATE IRELAND DRIVE HYDEN KY 41749 X X X X A 2 BARBOURVILLE ARH HOSPITAL 80 HOSPITAL DR BARBOURVILLE KY 40906 X X X X A 3 ARH OUR LADY OF THE WAY 11203 MAIN STREET MARTIN KY 41649 X X X X A FACILITY REPORTING GROUP - A 0 0 1 X X X X X X X X X 21 1 0 0 1 X HTTPS://WWW.ARH.ORG/CHNA/ X 1 21 1 HTTPS://WWW.ARH.ORG/CHNA/ 0 1 X 100.000000000000 200.000000000000 X 1 1 X X X X 1 X HTTPS://WWW.ARH.ORG/FINANCIAL-ASSISTANCE/ X HTTPS://WWW.ARH.ORG/FINANCIAL-ASSISTANCE/ X HTTPS://WWW.ARH.ORG/FINANCIAL-ASSISTANCE/ X X X X X 1 0 X X 1 X 0 0 PART V, SECTION B FACILITY REPORTING GROUP A FACILITY REPORTING GROUP A CONSISTS OF: - FACILITY 1: ARH MARY BRECKINRIDGE HEALTH SERVICES, INC, - FACILITY 2: BARBOURVILLE ARH HOSPITAL, - FACILITY 3: ARH OUR LADY OF THE WAY FACILITY REPORTING GROUP - A PART V, SECTION B, LINE 5: A COMMUNITY STEERING COMMITTEE PROVIDED GUIDANCE OVER THE COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS IN EACH OF ARH'S COMMUNITIES. THIS STEERING COMMITTEE WAS MADE UP OF REPRESENTATIVES FROM VARIOUS ORGANIZATIONS AND AGENCIES THROUGHOUT EACH HOSPITAL'S SERVICE AREA. IN PARTICULAR, SOME OF THE COMMITTEE MEMBERS REPRESENTED THE LOCAL HEALTH DEPARTMENT, SENIOR SERVICES, SCHOOL SYSTEM, SOCIAL SERVICE ORGANIZATIONS, AND EMERGENCY MANAGEMENT. THESE INDIVIDUALS ASSISTED WITH DISTRIBUTING SURVEYS AND ORGANIZING FOCUS GROUPS THROUGHOUT THE COMMUNITY ENSURING THAT VARIED COMMUNITY INTERESTS AND EXPERTISE WERE REPRESENTED. SPECIAL ATTENTION WAS PAID TO ENSURING THAT REPRESENTATION FROM THE PUBLIC HEALTH SECTOR WAS INCLUDED IN THIS ASSESSMENT PROCESS AND THAT THE SENIOR CITIZEN AND UNDERSERVED POPULATION WERE REPRESENTED. A COMPLETE LIST OF THE COMMUNITY STEERING COMMITTEE MEMBERS FOR EACH ARH FACILITY IS INCLUDED IN EACH ASSESSMENT'S FINAL REPORT. FACILITY REPORTING GROUP - A PART V, SECTION B, LINE 11: THE MOST RECENT COMMUNITY HEALTH NEEDS ASSESSMENT WAS COMPLETED BY ARH IN 2021-2022. THIS OFFERED A GOOD OPPORTUNITY TO EXAMINE PROGRESS MADE SINCE THE PREVIOUS CHNA PROCESS WHILE OUTLINING NEW STRATEGIES TO GUIDE ACTIVITIES, OUTREACH, AND AREAS OF IMPROVEMENT FOR RECENTLY IDENTIFIED NEEDS. ALL OF THE NEEDS IDENTIFIED DURING THIS PROCESS WERE REVIEWED AND PRIORITIZED BY EACH FACILITY. SOME NEEDS MAY NOT HAVE BEEN SELECTED AS A HIGH PRIORITY SINCE ANOTHER COMMUNITY AGENCY MAY ALREADY BE ADDRESSING THAT NEED AND REFERRALS JUST NEED TO BE MADE TO THAT PARTNER AGENCY. MEASURES WERE TAKEN TO ENSURE THAT EACH IDENTIFIED NEED WAS EITHER ADDRESSED TO SOME DEGREE BY ARH OR REFERRED TO OTHER APPROPRIATE COMMUNITY ENTITIES. BELOW ARE THE MAIN SYSTEM-WIDE NEEDS IDENTIFIED DURING ARH'S MOST RECENT CHNA. THESE AREAS ARE THE MAIN FOCUS OF THE HOSPITALS' ACTIVITIES:SUBSTANCE ABUSE (DRUGS, ALCOHOL, TOBACCO, VAPING)MENTAL HEALTH (SERVICES AND REDUCING STIGMA)OBESITY/DIABETES/PHYSICAL ACTIVITYCOMMUNICATION AND EDUCATIONTHE RESULTS FROM THE MOST RECENT CHNA IDENTIFIED THE NEED FOR ARH'S FACILITIES TO FOCUS ON PROVIDING MORE PREVENTIVE AND EDUCATIONAL SERVICES. FOR SOME COMMUNITIES, THIS ALSO MEANT FURTHER PUBLICIZING THE PREVENTIVE AND EDUCATIONAL SERVICES THAT THEY WERE ALREADY OFFERING TO FURTHER INCREASE COMMUNITY PARTNERSHIPS AND AWARENESS. CHNA RESPONDENTS ALSO REQUESTED INCREASED EDUCATIONAL TOPICS INCLUDING MORE OF A FOCUS ON TOPICS SUCH AS VAPING AND MENTAL HEALTH ALONG WITH THE CHRONIC DISEASE ISSUES OF DIABETES AND HEART DISEASE. AN INCREASE IN THE AVAILABILITY OF SERVICES AND PROVIDERS TO ADDRESS THESE IDENTIFIED HEALTH ISSUES IS ALSO A PROMINENT NEED IN THE REGION, ESPECIALLY THE NEED TO ADD MORE MENTAL HEALTH PROVIDERS. ANOTHER NEED THAT WAS ALSO APPARENT WITH THE MOST RECENT CHNA RESULTS WAS THE NEED TO IMPROVE COMMUNICATIONS. THIS NEED RANGES FROM ENSURING THAT THERE IS FASTER COMMUNICATION REGARDING TEST RESULTS, IMPROVING COMMUNICATION TO THE PUBLIC ON ARH SERVICES AND ACTIVITIES VIA SOCIAL MEDIA, AND PROVIDING MORE PATIENT NAVIGATORS/ADVOCATES TO ASSIST PATIENTS WITH NEGOTIATING THE HEALTHCARE PROCESS. 14 1 - HYDEN ARH CLINIC 130 KATE IRELAND DRIVE HYDEN KY 41749 CLINIC 2 - MB ARH HOME HEALTH AGENCY 166 KATE IRELAND DRIVE HYDEN KY 41749 HOME HEALTH 3 - BIG CREEK ARH CLINIC 17644 SOUTH HWY 421 BIG CREEK KY 40914 CLINIC 4 - CUMBERLAND VALLEY MEDICAL SURGICAL ASSOC 80 HOSPITAL DRIVE BARBOURVILLE KY 40906 CLINIC 5 - ARH CUMBERLAND VALLEY MEDICAL & SURGICAL 3504 W CUMBERLAND AVE MIDDLESBORO KY 40965 CLINIC 6 - ARH PRIMARY CARE ASSOC NI - MARTIN 11087 MAIN STREET MARTIN KY 41649 CLINIC 7 - ARH PRIMARY CARE ASSOC NJ - BETSY LANE 12579 MAIN STREET STE 101 MARTIN KY 41649 CLINIC 8 - ARH CUMBERLAND VALLEY MEDICAL & SURGICAL 302 WALNUT ST PINEVILLE KY 40977 CLINIC 9 - OUR LADY OF THE WAY PHARMACY 12579 MAIN STREET MARTIN KY 41649 PHARMACY 10 - ARH SPECIALTY PHARMACY- BARBOURVILLE 80 HOSPITAL DRIVE BARBOURVILLE KY 40906 PHARMACY 11 - ARH MEDICAL & SPECIALTY ASSOC - HAROLD 24 LEFT PENHOOK ROAD HAROLD KY 41635 CLINIC 12 - ARH CUMBERLAND VALLEY PHARMACY 3504 W CUMBERLAND AVE MIDDLESBORO KY 40965 PHARMACY 13 - ARH PRIMARY CARE ASSOC - SETON 11088 MAIN STREET SUITE 101 MARTIN KY 41649 CLINIC 14 - ARH PRIMARY CARE ASSOC - CORBIN 1317 CUMBERLAND FALLS HWY SUITE B CORBIN KY 40701 CLINIC PART I, LINE 3C: THE DISCOUNTS ARE BASED ON A SLIDING FEE SCHEDULE STARTING AT 100% OF FPG QUALIFYING FOR FREE CARE, RANGING UP TO UNLIMITED INCOME LEVELS FOR A 40% DISCOUNT ON ALL UNINSURED CARE PROVIDED. PART I, LINE 7: THE COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2. PART II, COMMUNITY BUILDING ACTIVITIES: THE RURAL SERVICE AREA COVERED BY ARH IN EASTERN KENTUCKY AND SOUTHERN WEST VIRGINIA INCLUDES MORE THAN 4 COUNTIES. THIS REGION IS FRAUGHT WITH SOME OF THE HIGHEST CHRONIC HEALTH PREVALENCE RATES IN THE COUNTRY FOR LUNG CANCER, DIABETES, AND HEART DISEASE. TO COMPOUND THESE PROBLEMS, MOST OF ARH'S FACILITIES ARE LOCATED IN AREAS THAT ARE AT LEAST PARTIALLY CLASSIFIED AS MEDICALLY UNDERSERVED AREAS AND HEALTH PROFESSIONAL SHORTAGE AREAS BY THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES. IN ADDITION, THE AREAS SERVED BY ARH ALSO FACE UNEMPLOYMENT RATES THAT ARE SUBSTANTIALLY HIGHER THAN STATE AND NATIONAL AVERAGES AND A HIGHER NUMBER OF CITIZENS IN THESE AREAS RANK BELOW THE NATIONAL POVERTY LEVEL. FOR MORE THAN 60 YEARS, ARH HAS CARRIED A HEAVY LOAD IN CARING FOR THIS POPULATION. IN FISCAL YEAR 2023 APPROXIMATELY 92 PERCENT OF ARH'S INPATIENTS WERE MEDICARE OR MEDICAID BENEFICIARIES. PART III, LINE 2: COSTING METHODOLOGY: TO DETERMINE THE BAD DEBT EXPENSE ON LINE 2, THE BAD DEBT EXPENSE PER THE FINANCIAL STATEMENTS, WHICH CONSISTS OF GROSS CHARGES LESS DISCOUNTS, WAS CONVERTED TO COST USING THE GLOBAL COST-TO-CHARGE RATIO DEVELOPED IN WORKSHEET 2. PATIENT DISCOUNTS ARE NOT REFLECTED IN BAD DEBT. ANY PAYMENTS ON AN ACCOUNT AFTER IT IS WRITTEN OFF TO BAD DEBT RESULT IN A REVERSAL OF THE ENTIRE ACCOUNT OUT OF BAD DEBT, REINSTATEMENT OF THE PATIENT ACCOUNT RECEIVABLE, AND ANY NEGOTIATED DIFFERENCE IN THE FULL AMOUNT OF THE ACCOUNT AND THE PAYMENT MADE IS WRITTEN OFF TO CONTRACTUAL ALLOWANCE. PATIENTS WHO MAY QUALIFY FOR CHARITY CARE BUT DO NOT APPLY CANNOT BE ESTIMATES. ALL PATIENTS ARE EDUCATED ABOUT AND GIVEN EVERY OPPORTUNITY TO APPLY FOR CHARITY CARE AND, THEREFORE, ARH HAS NO INFORMATION FOR THOSE WHO CHOOSE NOT TO APPLY. PART III, LINE 3: MANAGEMENT CONTINUALLY MONITORS AND ADJUSTS THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS ASSOCIATED WITH CREDIT RISK.THE CORPORATION'S ABILITY TO COLLECT OUTSTANDING RECEIVABLES IS CRITICAL TO ITS RESULTS OF OPERATIONS AND CASH FLOWS. TO PROVIDE FOR ACCOUNTS RECEIVABLE THAT COULD BECOME UNCOLLECTIBLE IN THE FUTURE, THE CORPORATION ESTABLISHES AN ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS TO REDUCE THE CARRYING VALUE OF SUCH RECEIVABLES TO THEIR ESTIMATED NET REALIZABLE VALUE. THE PRIMARY UNCERTAINTY OF SUCH ALLOWANCES LIES WITH UNINSURED PATIENT RECEIVABLES AND DEDUCTIBLES, CO-PAYMENTS OR OTHER AMOUNTS DUE FROM INDIVIDUAL PATIENTS. THE CORPORATION HAS AN ESTABLISHED PROCESS TO DETERMINE THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS THAT RELIES ON A NUMBER OF ANALYTICAL TOOLS AND BENCHMARKS TO ARRIVE AT A REASONABLE ALLOWANCE. NO SINGLE STATISTIC OR MEASUREMENT DETERMINES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. SOME OF THE ANALYTICAL TOOLS THAT THE CORPORATION UTILIZES INCLUDE, BUT ARE NOT LIMITED TO, HISTORICAL CASH COLLECTION EXPERIENCE BY PAYOR, REVENUE TRENDS BY PAYOR CLASSIFICATION AND AGED ACCOUNTS FROM DATE OF SERVICE BY PAYOR. ACCOUNTS RECEIVABLE ARE WRITTEN OFF AFTER COLLECTION EFFORTS HAVE BEEN FOLLOWED IN ACCORDANCE WITH THE CORPORATION'S POLICIES. PART III, LINE 4: THE CORPORATION HAS AN ESTABLISHED PROCESS TO DETERMINE THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS THAT RELIES ON A NUMBER OF ANALYTICAL TOOLS AND BENCHMARKS TO ARRIVE AT A REASONABLE ALLOWANCE. NO SINGLE STATISTIC OR MEASUREMENT DETERMINES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. SOME OF THE ANALYTICAL TOOLS THAT THE CORPORATION UTILIZES INCLUDE, BUT ARE NOT LIMITED TO, HISTORICAL CASH COLLECTION EXPERIENCE BY PAYOR, REVENUE TRENDS BY PAYOR CLASSIFICATION AND AGED ACCOUNTS FROM DATE OF SERVICE BY PAYOR. ACCOUNTS RECEIVABLE ARE WRITTEN OFF AFTER COLLECTION EFFORTS HAVE BEEN FOLLOWED IN ACCORDANCE WITH THE CORPORATION'S POLICIES. PART III, LINE 8: NEARLY ONE HALF OF THE CORPORATION'S PATIENT REVENUES ARE DERIVED FROM SERVICES PROVIDED TO MEDICARE BENEFICIARIES. IN TURN, PAYMENTS RECEIVED FROM THE FEDERAL GOVERNMENT FELL SHORT OF THE COST TO PROVIDE SUCH SERVICES BY NEARLY $3.5 MILLION. MEDICARE RECIPIENTS RELY HEAVILY ON ARH FOR CARE. IN MANY OF THE COMMUNITIES IT SERVES, ARH IS THE LONE PROVIDER OF ACUTE HOSPITAL CARE. THE CORPORATION CONSIDERS ITS PARTICIPATION IN THE MEDICARE PROGRAM AND THE ASSOCIATED LOSSES RESULTING THEREOF AS AN ESSENTIAL COMPONENT OF COMMUNITY BENEFIT. ACCORDINGLY, WE DEEM THAT $3,438,855 (OR 100%) OF THE AMOUNT REPORTED ON SCHEDULE H, PART III, LINE 7 BE TREATED AS A COMMUNITY BENEFIT. PART III, LINE 9B: THE PROVISIONS IN THE WRITTEN DEBT COLLECTION POLICY ARE THAT CHARITY AND FINANCIAL ASSISTANCE APPLICATIONS ARE VALID FOR 6 MONTHS. AFTER THAT TIME, THE PATIENT MUST REAPPLY AND PRESENT CURRENT FINANCIAL DOCUMENTS AS NECESSARY. PART VI, LINE 2: IN ADDITION TO THE COMMUNITY HEALTH NEEDS ASSESSMENT THAT IS CONDUCTED BY ARH EVERY THREE YEARS AND REPORTED ELSEWHERE IN THIS DOCUMENT, ARH ALSO CONTINALLY ASSESSES COMMUNITY NEEDS IN OTHER FORMS AS WELL. THE NEEDS OF THE COMMUNITIES THAT MARY BRECKINRIDGE SERVES THROUGHOUT EASTERN KENTUCKY ARE ASSESSED BY FOLLOWING EMERGING MEDICAL PRACTICE NEEDS AS A WHOLE ACROSS THE NATION AND SPECIFICALLY IN THE APPALACHIAN REGION. THE HEALTH NEEDS ARE EXAMINED BY LOOKING AT HEALTH STATISTICS AND DISEASE PREVALENCE COMPARED TO SERVICE/PHYSICIAN AVAILABILITY. PATIENT AND COMMUNITY SURVEYS ARE ALSO REGULARLY CONDUCTED TO ASSESS CONSUMER PERCEIVED NEEDS. LOCAL ADVISORY COUNCILS (LACS) ALSO EXIST IN EACH OF ARH'S HOSPITAL COMMUNITIES. THE COUNCILS ARE COMPRISED OF LOCAL CITIZENS WHO VOLUNTEER TO HELP ARH IMPROVE THE HEALTH OF ITS COMMUNITIES THROUGH REGULAR MEETINGS THAT DISCUSS COMMUNITY HEALTH ISSUES AND HELP ARH IDENTIFY AND ADDRESS THEM. MEMBERS ALSO ADVISE ARH ABOUT IMPROVEMENTS NEEDED AND COMMUNITY PERCEPTIONS OF ARH FACILITIES AND THESE INDIVIDUALS SERVE AS EXCELLENT AMBASSADORS FOR ARH AND ITS SERVICES. THESE INDIVIDUALS HAVE DEMONSTRATED THEIR LEADERSHIP IN LOCAL CIVIC AFFAIRS AND REFLECT A CROSS SECTION OF THE COMMUNITY. PART VI, LINE 3: MARY BRECKINRIDGE HEALTH SERVICES OBSERVES THE FINANCIAL ASSISTANCE POLICY OF ITS SYSTEM AFFILIATE APPALACHIAN REGIONAL HEALTHCARE (ARH). UNDER ARH'S FINANCIAL ASSISTANCE PROGRAM AND POLICY, EACH PATIENT WITHOUT MEDICAL COVERAGE FOR RENDERED SERVICES IS OFFERED A 40% DISCOUNT OF GROSS CHARGES AT TIME OF SERVICE. IF THE PATIENT EXTENDS PAYMENT AT TIME OF SERVICE, THEY ARE GIVEN ANOTHER 10% DISCOUNT, MAKING THEIR LIABILITY 50% OF GROSS CHARGES. ALL OF THESE DISCOUNTS ARE APPLIED AT TIME OF CHARGE AND BILLED AFTER THE DISCOUNT IS TAKEN. IF SAID PATIENT IS UNABLE TO MEET THE FINANCIAL OBLIGATIONS FOR SERVICE, THEY ARE EDUCATED AND SCREENED FOR POTENTIAL FEDERAL AND/OR STATE ASSISTANCE PROGRAMS. BY DOING THIS, THE PATIENT IS REVIEWED AND EDUCATED BY ON-SITE FINANCIAL COUNSELORS AND/OR ELIGIBILITY AGENCY TO GET THE INDIVIDUAL PLACED IN AN ASSISTANCE PROGRAM. BASED ON INCOME AND FAMILY STATUS THE PATIENT IS SCREENED IN CONJUNCTION WITH THE FEDERAL AND STATE POVERTY GUIDELINES. AT THIS TIME, ALL APPLICATIONS ARE COMPLETED WITH THE ASSISTANCE OF ARH PERSONNEL AND SUBMITTED FOR APPROVAL. IN THE EVENT AN AGENCY REQUIRES THE PATIENT/GUARANTOR TO APPLY IN PERSON, THE INDIVIDUAL IS ASKED TO MAKE AN APPOINTMENT WITH THAT AGENCY AND FILE THEIR COMPLETED DOCUMENTS. IF THE RESPONSIBLE PARTY IS NOT ELIGIBLE FOR FEDERAL OR STATE ASSISTANCE, THEY ARE ADDITIONALLY SCREENED BY ARH FOR ELIGIBILITY INTO OUR INTERNAL SLIDING FEE SCHEDULE CHARITY PROGRAM FOR ADDITIONAL DISCOUNTS UP TO 100% OF GROSS CHARGES. IF THE PATIENT IS HELD RESPONSIBLE, ADDITIONAL EFFORTS TO ASSIST THE PATIENT ARE MADE BY OFFERING REASONABLE PAYMENT PLANS AND DEFERRED PAYMENTS. IN THE EVENT THE PATIENT/GUARANTOR DOES NOT MAKE A REASONABLE EFFORT TO COMPLETE NECESSARY DOCUMENTATION TO APPLY OR BECOME ELIGIBLE FOR A FINANCIAL ASSISTANCE PROGRAM THEY ARE THEN STILL GIVEN THE INITIAL 40% DISCOUNT AND MOVED THROUGH THE NORMAL COLLECTION PROCESS. PART VI, LINE 4: THE RURAL SERVICE AREA COVERED BY ARH IN EASTERN KENTUCKY AND SOUTHERN WEST VIRGINIA INCLUDES MORE THAN 4 COUNTIES. THIS REGION IS FRAUGHT WITH SOME OF THE HIGHEST CHRONIC HEALTH PREVALENCE RATES IN THE COUNTRY FOR LUNG CANCER, DIABETES, AND HEART DISEASE. TO COMPOUND THESE PROBLEMS, MOST OF ARH'S FACILITIES ARE LOCATED IN AREAS THAT ARE AT LEAST PARTIALLY CLASSIFIED AS MEDICALLY UNDERSERVED AREAS AND HEALTH PROFESSIONAL SHORTAGE AREAS BY THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES. IN ADDITION, THE AREAS SERVED BY ARH ALSO FACE UNEMPLOYMENT RATES THAT ARE SUBSTANTIALLY HIGHER THAN STATE AND NATIONAL AVERAGES AND A HIGHER NUMBER OF CITIZENS IN THESE AREAS RANK BELOW THE NATIONAL POVERTY LEVEL. FOR MORE THAN 60 YEARS, ARH HAS CARRIED A HEAVY LOAD IN CARING FOR THIS POPULATION. IN FISCAL YEAR 2023 APPROXIMATELY 92 PERCENT OF ARH'S INPATIENTS WERE MEDICARE OR MEDICAID BENEFICIARIES. PART VI, LINE 5: MARY BRECKINRIDGE HEALTH SERVICES (MBHS) PROVIDES LESLIE, FLOYD, KNOX AND SURROUNDING COUNTIES AN ABUNDANCE OF HEALTHCARE AND COMMUNITY ORIENTED SERVICES THROUGH ITS MEDICAL FACILITIES AS WELL AS COMMUNITY OUTREACH SERVICES. TODAY, MBHS CONTINUES ITS MISSION IN THE MOUNTAINS BY OFFERING RESIDENTS OF EASTERN KENTUCKY A LOCAL OPTION FOR QUALITY HEALTHCARE SERVICES. MBHS HOLDS STEADFAST TO THE MISSION TO IMPROVE HEALTH AND PROMOTE WELL-BEING OF ALL THE PEOPLE IN CENTRAL APPALACHIA IN PARTNERSHIP WITH OUR COMMUNITIES. MBHS CONSISTS OF THREE CRITICAL ACCESS HOSPITALS AND RELATED CLINIC, PHARMACY, HOME HEALTH AGENCY, AND HOME CARE STORE SERVICES. ALONG WITH THEIR SYSTEM AFFILIATE, APPALACHIAN REGIONAL HEALTHCARE (ARH), MBHS HAS EVOLVED INTO AN INTEGRATED HEALTHCARE DELIVERY SYSTEM SERVING MORE THAN 60,000 RESIDENTS ACROSS EASTERN KENTUCKY. WHILE PROVIDING THIS REGION WITH QUALITY HEALTHCARE, MBHS REINVESTS ANY EARNINGS BACK INTO OPERATIONS TO FURTHER THE SYSTEM'S EFFORTS IN IMPROVING AND ACCESSING HEALTHCARE SERVICES FOR THE REGION. CREATED TO ADDRESS THE UNMET HEALTH NEEDS OF AN UNDERSERVED REGION, MBHS LEADERSHIP AND STAFF MEMBERS REALIZE THAT SERVING THIS POPULATION IS ABOUT MORE THAN JUST ADDRESSING THE HEALTH NEEDS, IT IS ALSO ABOUT PREVENTING CHRONIC DISEASES. THROUGH PARTNERSHIPS WITH AREA SCHOOLS, BUSINESSES, ORGANIZATIONS AND HEALTH DEPARTMENTS, MBHS IS ONE OF THE PRIMARY SOURCES FOR HEALTH EDUCATION AND DISEASE PREVENTION IN EACH COMMUNITY AND PARTNERS WITH ALL OF THESE VARIOUS COMMUNITY ENTITIES TO FURTHER THESE EFFORTS. MBHS SPONSORS MANY COMMUNITY-WIDE WELLNESS EVENTS THROUGHOUT ITS SERVICE AREAS, INCLUDING HEALTH FAIRS AND VARIOUS SUPPORT GROUPS. EACH YEAR, MBHS PROVIDES FREE OR DISCOUNTED HEALTH SCREENINGS FOR COLORECTAL, BREAST, AND PROSTATE CANCERS AS WELL AS ROUTINE BLOOD PRESSURE, CHOLESTEROL, GLUCOSE, AND BODY MASS INDEX (BMI) SCREENINGS IN EFFORTS TO PREVENT THE ONSET OF ILLNESSES OR CATCH MEDICAL CONDITIONS BEFORE THEY BECOME LIFE THREATENING. MBHS ALSO ACTIVELY UTILIZES ALL FORMS OF MEDIA TO PROMOTE WELLNESS AND EDUCATE THE PUBLIC ON THE SIGNS AND SYMPTOMS OF MANY COMMON HEALTH CONDITIONS. THIS INCLUDES HEALTH EDUCATION NEWSLETTERS THAT ARE MAILED DIRECTLY TO RESIDENTS' HOMES. PART VI, LINE 6: DURING FISCAL YEAR 2023, MARY BRECKINRIDGE HEALTH SERVICES (MBHS) EFFORTS WERE MAINLY ORGANIZED AROUND ITS THREE HOSPITAL SPECIFIC COMMUNITIES ACROSS EASTERN KENTUCKY. IN EACH OF THESE COMMUNITIES, A HOSPITAL EXISTS ALONG WITH A COMPLIMENTARY ARRANGEMENT OF OTHER MBHS SERVICES, WHICH MAY INCLUDE CLINICS, HOME HEALTH AGENCIES, PHARMACIES, AND/OR HOME DURABLE MEDICAL EQUIPMENT STORES. IN CONJUNCTION WITH OUR SYSTEM AFFILIATE APPALACHIAN REGIONAL HEALTHCARE (ARH), VARIOUS HEALTH PROMOTION ACTIVITIES ARE ORGANIZED AND PROMOTED ACROSS THE FACILITIES, INCLUDING THE INTRODUCTION OF NEW SERVICE LINES AND NEW TECHNOLOGY. IN EACH OF MBHS'S/ARH'S SERVICE AREAS, VARIOUS COMMUNITY OUTREACH PROGRAMS ARE ALSO UNDERWAY AND AGGRESSIVELY ADDRESSING THE HEALTH CONCERNS OF THAT PARTICULAR AREA, WHILE STRONG COMMUNITY COLLABORATION IS BEING DEVELOPED. FROM SENIOR CITIZEN WELLNESS PROGRAMS TO PATIENT ASSISTANCE VIA A CANCER NAVIGATOR, ARH'S COMMUNITIES ARE REAPING THE BENEFITS OF SUCCESSFUL COMMUNITY OUTREACH. 0 FLOYD COUNTY BOARD OF EDUCATION 442 KY ROUTE 550 EASTERN KY 41622 616001347 GOVERNMENT 9228 0 SUPPORT ONGOING OPERATIONS 1 0 X X X X X 0 1 0 0 0 0 1 0 0 HOLLIE P HARRIS PRESIDENT/CEO 0 836960 0 237440 0 0 0 20500 0 14840 0 1109740 0 0 DANNY HARRIS TREASURER 0 458877 0 131320 0 0 0 20500 0 8208 0 618905 0 0 MARIA BRAMAN CHIEF MEDICAL OFFICER 0 424358 0 126840 0 0 0 20500 0 7928 0 579626 0 0 THOMAS MOORE GASTROENTEROLOGIST 578048 0 0 0 0 0 0 0 0 0 578048 0 0 0 BYRON GABBARD EXECUTIVE VP OF FINANCE 0 393015 0 112000 0 0 0 20500 0 6800 0 532315 0 0 JAMES WEST HOSPITALIST 433832 0 0 0 0 0 0 0 0 0 433832 0 0 0 CHRISTI LEE CHIEF LEGAL COUNCIL 0 317526 0 96600 0 0 0 15575 0 1113 0 430814 0 0 LARRY E WARREN FAMILY PHYSICIAN 408959 0 0 0 0 0 0 0 0 0 408959 0 0 0 JERRY WOOLUM FAMILY PHYSICIAN 370045 0 0 0 0 0 0 0 0 0 370045 0 0 0 PETER KUMMANT GENERAL SURGEON 309417 0 0 0 0 0 0 0 0 0 309417 0 0 0 PART I, LINE 3 THE RELATED ORGANIZATION USES THE FOLLOWING METHODS TO DETERMINE COMPENSATION FOR ITS CEO: - COMPENSATION COMMITTEE - INDEPENDENT COMPENSATION CONSULTANT - WRITTEN EMPLOYMENT CONTRACT - COMPENSATION SURVEY OR STUDY - APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE PART I, LINE 4B THE RELATED ORGANIZATION, ARH, PROVIDES SENIOR EXECUTIVES A CONTRIBUTION 3, 5,OR 7 PERCENT OF PAY (SUBJECT TO DOLLAR CAP), DEPENDING ON JOB TITLE, INTO THE TOP HAT 457(B) RETIREMENT PLAN. THE CONTRIBUTION AND EARNINGS ARE TAX DEFERRED UNTIL ASSETS ARE DISTRIBUTED OR WITHDRAWN. THE MAXIMUM CONTRIBUTION IS SUBJECT TO THE IRS COMPENSATION CAP, WHICH ALLOWS A CONTRIBUTION OF UP TO $20,500 IN 2022. THIS CONTRIBUTION TOTAL IS AN AGGREGATE TOTAL REGARDLESS OF WHETHER ARH OR THE EXECUTIVE MAKES THE CONTRIBUTION. CONTRIBUTION TO THE 457(B) DOES NOT AFFECT THE AMOUNTS THE EXECUTIVE MIGHT CONTRIBUTE TO THE 403(B) THRIFT PLAN. THE EXECUTIVE MAY CONTRIBUTE HIS/HER OWN MONEY TO THE PLAN PRE-TAX, TO THE EXTENT THE IRS CAPS ALLOW ROOM AFTER ARH'S CONTRIBUTION. CATCH UP CONTRIBUTIONS ARE ALLOWED WITHIN IRS LIMITS IN THE LAST THREE YEARS PRIOR TO RETIREMENT (AND, IF THE 3,5 OR 7 PERCENT OF PAY EXCEEDS THE REGULAR DOLLAR CAP, ARH MAY USE THE BALANCE OF THE PERCENTAGE TO FUND UP THE CATCH UP LIMIT). BENEFITS ARE SUBJECT TO SOCIAL SECURITY AND MEDICARE TAXES AS THEY ACCRUE. THE FUNDS ARE INVESTED AS DIRECTED BY THE EXECUTIVE, BUT THE ACCOUNT REMAINS A GENERAL ASSET OF ARH. IF ARH BECOMES INSOLVENT, THE EXECUTIVE WILL BE AN UNSECURED CREDITOR AND WILL HAVE NO PREFERRED CLAIM TO ANY ASSETS. IF THE FUNDING OF THE 457(B), INCLUDING ANY CATCH UP PROVISIONS, IS LESS THAN THE 3,5 OR 7 PERCENT OF BASE PAY, THEN ARH WILL CONTRIBUTE THE REMAINDER TO A 457(F) PLAN. INDIVIDUALS PARTICIPATING IN THE 457(F) PLAN AND THE RESPECTIVE EMPLOYER CONTRIBUTIONS FOR EACH INCLUDE: HOLLIE HARRIS - $14,840; DANNY HARRIS - $8,207.50; MARIA BRAMAN - $7,927.50; BYRON GABBARD - $6,800; CHRISTI LEE - $1,112.50 PART I, LINE 6 THE COMPENSATION AND CONTRACTS COMMITTEE OF THE RELATED ORGANIZATION (ARH) BOARD OF TRUSTEES ADOPTED A SHORT-TERM INCENTIVE COMPENSATION PROGRAM FOR EXECUTIVES IN SEPTEMBER 2002. THE PROGRAM ESTABLISHED INCENTIVES FOR ACHIEVING SYSTEM AND COMMUNITY OBJECTIVES FOR EXECUTIVE LEADERSHIP BY INTEGRATING THE PERFORMANCE MANAGEMENT AND EXECUTIVE COMPENSATION SYSTEMS. THE INCENTIVE THRESHOLDS HAVE BEEN MODIFIED ACROSS TIME TO REFLECT INCREASED PERFORMANCE EXPECTATIONS AS IDENTIFIED IN THE SYSTEM'S STRATEGIC, BUDGET AND OPERATIONS PLAN. THE INCENTIVE AWARDS PROVIDE ADDITIONAL CASH COMPENSATION AS A PERCENTAGE OF BASE SALARY IN RELATION TO LEVELS OF ACHIEVEMENT. THESE ACHIEVEMENT LEVELS RANGE FROM THRESHOLD (LOWEST), TO TARGET (10% ABOVE THE THRESHOLD), AND MAXIMUM (HIGHEST AND 20% ABOVE THE THRESHOLD) AND VARY BASED UPON EXECUTIVE LEVEL. THE EXECUTIVE INCENTIVE PLAN WILL BE ADMINISTERED IN ACCORDANCE WITH THE FOLLOWING GUIDELINES: A OBJECTIVES AND TARGETS ARE SET THROUGH THE STRATEGIC PLANNING, BUDGETING AND PERFORMANCE MANAGEMENT PROCESSES. B. SYSTEM MARGIN AND CASH BUDGET THRESHOLDS MUST BE MET BEFORE INDIVIDUAL AWARDS WILL BE CONSIDERED. C. AWARDS WILL BE CONSIDERED AS HAVING BEEN EARNED UPON AFFIRMATION BASED ON AUDITED FINANCIAL RESULTS AND ACTUAL OPERATING PERFORMANCE. D. THE PRESIDENT AND CEO WILL RECOMMEND PAYMENT OF INDIVIDUAL AWARDS, IF ANY, TO THE COMPENSATION AND CONTRACTS COMMITTEE FOR CONSIDERATION. E. THE COMPENSATION AND CONTRACTS COMMITTEE MAY ACCEPT, REJECT, OR MODIFY THE PRESIDENT AND CEO'S RECOMMENDATION. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION'S SOLE MEMBER IS APPALACHIAN REGIONAL HEALTHCARE, INC. FORM 990, PART VI, SECTION A, LINE 7A APPALACHIAN REGIONAL HEALTHCARE, INC. APPOINTS THE BOARD OF DIRECTORS OF THE ARH MARY BRECKINRIDGE. FORM 990, PART VI, SECTION A, LINE 7B APPALACHIAN REGIONAL HEALTHCARE, INC. HAS THE POWER TO APPROVE AMENDMENTS TO THE ARTICLES OF INCORPORATION OF ARH MARY BRECKINRIDGE. FORM 990, PART VI, SECTION B, LINE 11B APPALACHIAN REGIONAL HEALTHCARE'S (ARH) DIRECTOR OF ACCOUNTING AND CFO BOTH REVIEW THE 990 PRIOR TO THE ARH BOARD REVIEW. THE ARH BOARD THEN REVIEWS THE 990 PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ARH MARY BRECKINRIDGE FOLLOWS ARH'S CONFLICT OF INTEREST POLICY AND ONGOING MONITORING. ARH'S MONITORING PROCESS IS: A SECURE WEBSITE IS PROVIDED TO OFFICERS AND TRUSTEES FOR ANNUAL DISCLOSURES, AND IS MONITORED REGULARLY BY THE VICE PRESIDENT OF LEGAL AFFAIRS AND THE CORPORATE COMPLIANCE OFFICERS. POTENTIAL CONFLICTS OF INTEREST ARE REPORTED DIRECTLY TO THE CHAIRMAN OF THE BOARD. TRUSTEES IDENTIFIED AS HAVING A CONFLICT OF INTEREST IN A PARTICULAR MATTER BEFORE THE BOARD MAY NOT PARTICIPATE IN THE BOARD'S DECISION-MAKING PROCESS. FAILURE TO DISCLOSE IS SUBJECT TO DISCIPLINE, INCLUDING CENSURE, AND IN SOME CASES, REMOVAL FROM THE BOARD. EMPLOYEE OFFICERS ARE SUBJECT TO DISCIPLINE IN ACCORDANCE WITH THE CORPORATION'S HUMAN RESOURCE POLICIES AND THE ARH CODE OF BUSINESS AND PROFESSIONAL CONDUCT. FORM 990, PART VI, SECTION B, LINE 15 THE RELATED ORGANIZATION, APPALACHIAN REGIONAL HEALTHCARE, INC.'S (ARH) BOARD SETS COMPENSATION LEVELS FOR PRESIDENT/CEO AND OTHER ARH EXECUTIVES AND KEY EMPLOYEES. THE BOARD CONTRACTS WITH A CONSULTING FIRM TO REVIEW THE MARKET FOR THE POSITIONS ON THE SYSTEM OPERATING COUNCIL WHO MAKES RECOMMENDATIONS ON THE SALARY RANGES AND ASSESSES THE COMPETITIVENESS OF THE SALARIES. WITH THAT INFORMATION, THE COMPENSATION AND CONTRACTS COMMITTEE SET THE RANGES AND THE PRESIDENT'S COMPENSATION. THE BOARD REVIEWS AND FINALIZES COMPENSATION AMOUNTS. THE CONSULTING FIRM FOLLOWS UP WITH A LETTER ATTESTING TO THE REASONABLENESS OF COMPENSATION. APPALACHIAN REGIONAL HEALTHCARE HAS DEVELOPED A PARTNERSHIP WITH MERCER GROUP TO EVALUATE EXECUTIVE COMPENSATION PLANS. FORM 990, PART VI, SECTION C, LINE 19 WHILE ARH MARY BRECKINRIDGE HAS NOT YET ADOPTED A POLICY OF SHARING ITS FINANCIAL STATEMENTS WITH THE PUBLIC, IT DOES PROVIDE FINANCIAL INFORMATION THROUGH THE FORM 990 AND ALSO PROVIDES CERTAIN FINANCIAL INFORMATION IN OTHER PUBLIC DOCUMENTS, INCLUDING ITS PERIODIC REPORTS TO THE COMMUNITIES IT SERVES. FORM 990, PART IX, LINE 24E BAD DEBT EXPENSE: 528,712 PROGRAM SERVICES PORTION: 528,712 SECURITY SERVICES EXPENSE: 390,809 PROGRAM SERVICES PORTION: 390,809 PATIENT TRANSPORT EXPENSE: 119,942 PROGRAM SERVICES PORTION: 119,942 RECRUITMENT EXPENSE: 52,133 PROGRAM SERVICES PORTION: 52,133 SALES TAX EXPENSE: 2,744 PROGRAM SERVICES PORTION: 2,744 MISCELLANEOUS OTHER EXPENSE: 9,542,911 PROGRAM SERVICES PORTION: 925,032 MANAGEMENT & GENERAL PORTION: 8,617,879 TOTAL OTHER MISC EXPENSES: 10,637,251 PROGRAM SERVICES PORTION: 2,019,372 MANAGEMENT & GENERAL PORTION: 8,617,879 FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR. PRIOR TO THE START OF THE AUDIT, THE VICE PRESIDENT OF FINANCE MEETS WITH THE INDEPENDENT AUDITORS. AT THE CONCLUSION OF THE AUDIT, THE FINANCE COMMITTEE MEETS WITH THE INDEPENDENT AUDITORS FOR PRESENTATION OF THE FINANCIAL STATEMENTS. THE INDEPENDENT AUDITORS ARE SELECTED WHEN DEEMED NECESSARY BY MANAGEMENT THROUGH A FORMAL "REQUEST FOR PROPOSAL" (RFP) PROCESS. THE ARH FOUNDATION FOR HEALTHIER COMMUNITIES INC 100 AIRPORT GARDENS RD HAZARD KY 41701 204840007 CARRYING OUT FUNDRAISING AND CHARITABLE ACTIVITIES FOR ARH KY 501(C)(3) LINE 7 APPALACHIAN REGIONAL HEALTHCARE INC 0 APPALACHIAN REGIONAL HEALTHCARE INC 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 520795508 HEALTH CARE KY 501(C)(3) LINE 3 N/A 0 ARH TUG VALLEY HEALTH SERVICES INC 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 822577178 HEALTH CARE KY 501(C)(3) LINE 3 APPALACHIAN REGIONAL HEALTHCARE INC 0 ARH ADVANCED CARE INC 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 872421892 HEALTH CARE KY 501(C)(3) LINE 3 APPALACHIAN REGIONAL HEALTHCARE INC 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 0