2024-08-09T13:00:41-05:00 2023-09-30 990 2022-10-01 232532377 LEHIGH VALLEY HEALTH NETWORK EMERGENCY MEDICAL SERVICES LEHI 4842241876 PO BOX 4000 ALLENTOWN PA 18105 ROBERT THOMAS TREASURER 4842241876 2024-08-09 0 2022 2024-08-08 14:25:15Z LVHN EMS ROBERT THOMAS PO BOX 4000 ALLENTOWN PA 18105 12488595 0 X WWW.LVHN.ORG X 1955 PA EMERGENCY RESPONSE AND AMBULANCE TRANSPORT. 7 1 139 0 0 0 0 0 7792278 12487795 8281 800 246 0 7800805 12488595 0 0 0 0 7023394 8738455 0 0 0 1782060 2554255 8805454 11292710 -1004649 1195885 4956794 15228675 10670062 18872281 -5713268 -3643606 X LEHIGH VALLEY HEALTH NETWORK EMERGENCY MEDICAL SERVICES (LVHN EMS) MISSION IS TO BE THE AUTHORITY FOR ALL EMS ACTIVITIES WITHIN THE NETWORK OVERSEEING A DIVISION WHICH PROVIDES SUPERIOR-COLLABORATIVE, EVIDENCE-BASED, AND COST-EFFECTIVE EDUCATION AND CARE TO MEET THE MEDICAL TRANSPORT NEEDS OF THE COMMUNITIES WE SERVE ALL THE WHILE PROVIDING AN EXCEPTIONAL PATIENT AND PROVIDER EXPERIENCE. 0 0 10648117 12488595 LEHIGH VALLEY HEALTH NETWORK EMERGENCY MEDICAL SERVICES (LVHN EMS) IS A NON-PROFIT EMS BUSINESS SUBSIDIARY OF LEHIGH VALLEY HEALTH NETWORK.LEHIGH VALLEY HEALTH NETWORK EMS CONTINUES TO HAVE TWO PRE-HOSPITAL BRANCHES, WEST END OPERATIONS (FORMERLY WEST END COMMUNITY AMBULANCE ASSOCIATION) WHICH HAS BEEN DESIGNATED AS THE PRIMARY EMERGENCY MEDICAL SERVICES AGENCY IN THE FOLLOWING TOWNSHIPS: CHESTNUTHILL, POLK, ELDRED, AND TUNKHANNOCK, WITH A TOTAL OF OVER 35,000 RESIDENTS ANNUALLY AND INCREASES TO OVER 75,000 DURING PEAK VACATION PERIODS IN THE SUMMER AND WITH MAJOR EVENTS IN MONROE COUNTY. OUR WEST END OPERATIONS PROVIDE SERVICES TO HAMILTON, AND ROSS TOWNSHIPS, WITH A TOTAL OF 15,023 RESIDENTS. WEST END COVERS 154 SQUARE MILES ON A PRIMARY AND FIRST DUE BASIS. WEST END CONTINUES TO PROVIDE MUTUAL AID SERVICES TO STROUD TOWNSHIP, STROUDSBURG BOROUGH, EAST STROUDSBURG BOROUGH AND AT TIMES MIDDLE SMITHFIELD TOWNSHIP, LEHMAN, AND PIKE COUNTY. THE WEST END CALL VOLUME FOR FY23 WAS OVER 4,500 CALLS FOR EMERGENCY MEDICAL SERVICES AND PATIENT MOVEMENT. THE OTHER PRE-HOSPITAL LOCATION IS THE HAZLETON OPERATIONS (AMERICAN PATIENT TRANSPORT SYSTEMS) WHICH IS THE PRIMARY AMBULANCE SERVICE FOR THE CITY OF HAZLETON AND HAZLE TOWNSHIP IN LUZERNE COUNTY AS WELL AS BEAVER MEADOWS AND THE BOROUGH OF WEATHERLY IN CARBON COUNTY. OUR HAZLETON OPERATIONS ARE ALSO THE PRIMARY ALS PROVIDER FOR MCADOO, RUSH TWP, RYAN TWP, AND SHEPPTON/ONEIDA IN SCHUYLKILL COUNTY, AND PACKER TOWNSHIP IN CARBON COUNTY, AND WEST HAZLETON BOROUGH IN LUZERNE COUNTY.THE HAZLETON OPERATIONS SERVE LOWER LUZERNE COUNTY AND PORTIONS OF CARBON AND SCHUYLKILL COUNTIES ENCOMPASSING A 100-MILE RADIUS OF COVERAGE AREA AS PRIMARY AND FIRST DUE BASIS FOR OVER 100,000 RESIDENTS ANNUALLY. IN FY23 THE HAZLETON OPERATIONS RESPONDED TO OVER 8,500 CALLS FOR EMERGENCY MEDICAL SERVICES AND PATIENT MOVEMENT.OUR MEDEVAC CRITICAL CARE GROUND TRANSPORT SERVICE HANDLES ALL CRITICAL CARE PATIENT MOVEMENT THROUGHOUT THE LEHIGH VALLEY HEALTH NETWORK AND TO OUTSIDE HEALTHCARE ORGANIZATIONS AS REQUESTED. IN ADDITION TO THE 24/7 EMERGENCY MEDICAL SERVICES LVHN EMS PROVIDES THROUGH OUR PRE-HOSPITAL LOCATIONS, LVHN EMS ALSO SUPPORTS OUR AREA EMS PARTNERS AND ALL LVH CAMPUSES WITH TRANSPORTS OF BOTH CRITICALLY ILL PATIENTS TO A HIGHER LEVEL OF CARE, AND DISCHARGED HOME PATIENTS WITH ALL AREAS OF THE EMS BUSINESS. LVHN EMS WEST END OPERATIONS HAS SERVED AS THE PRIMARY EVENT MEDICAL TEAM FOR THE WEST END FAIR FOR OVER TWENTY-FIVE YEARS. IN 2023, AN ESTIMATED 100,000 PLUS PEOPLE ATTENDED THE 101ST ANNUAL WEST END FAIR. LVHN EMS WEST END OPERATIONS EMPLOYS 24 FULLTIME ADVANCED AND BASIC LIFE SUPPORT PROVIDERS AND 9 PER DIEM PROVIDERS; THE HAZLETON OPERATIONS EMPLOYS 36 FULLTIME AND 12 PER DIEM ADVANCED AND BASIC LIFE SUPPORT PROVIDERS, 4 FULL TIME DISPATCHERS AND 1 PER DIEM OFFICE PERSONNEL; THE MEDEVAC CRITICAL CARE GROUND SERVICE EMPLOYS 35 FULL AND PART TIME ALS LEVEL PERSONNEL. OUR PRE-HOSPITAL FLEET IS COMPRISED OF SIXTEEN AMBULANCES AND FOUR EMS SQUADS THAT ARE UTILIZED AT OUR FOUR STATIONS. OUR EMS LICENSURE OF OUR ENTIRE BUSINESS IS CURRENT THROUGH 12/31/2025. THIS PAST YEAR OUR PRE-HOSPITAL SERVICE TOOK DELIVERY OF 6 NEW AMBULANCES AND 1 ADDITIONAL SQUAD TO ENHANCE OUR RESPONSE TO 911 CALLS AND PROVIDE BETTER, MORE EFFICIENT AND SAFE CARE AND TRANSPORT. IN ADDITION, WE ALSO OFFER OUR PRIMARY TOWNSHIPS THE FOLLOWING SERVICES: - PROVIDE CPR AND FIRST AID TRAINING FOR ALL OUR COMMUNITIES AND THEIR STAFF.- PROVIDE RE-CERTIFICATION TO CURRENT CPR HOLDERS.- PROVIDE AN ADDITIONAL FIRST AID AND BLEEDING CONTROL COURSE FOR OUR COMMUNITIES ROAD CREWS AND STAFF.- PARTNERED WITH THE EASTERN PA EMS COUNCIL IN HANDS ONLY CPR AND STOP THE BLEED TRAINING PROGRAMS AT ALL SCHOOL DISTRICTS IN MONROE, CARBON, SCHUYLKILL, NORTHAMPTON, LEHIGH AND LUZERNE COUNTIES. - PROVIDE PREVENTIVE MAINTENANCE CHECKS AND CHANGE THE SMOKE ALARM BATTERIES AND PROVIDE SERVICE AND REPLACEMENT PADS FOR AED'S.- LVHN EMS WEST END OPERATIONS PROVIDES ALS/BLS STANDBY SERVICES FOR THE PLEASANT VALLEY AREA SCHOOL DISTRICT FOR FOOTBALL, CROSS COUNTRY, AND COMMUNITY EVENTS INCLUDING 5K'S, AND SMALL FAIRS WITHIN THE WEST END COVERAGE AREA. - LVHN EMS HAZLETON OPERATIONS PROVIDES ALS/BLS STANDBY SERVICES FOR THE HAZLETON AREA SCHOOL DISTRICT ATHLETIC EVENTS, COMMUNITY EVENTS AND EDUCATION TO ELEMENTARY SCHOOLS AS REQUESTED. 10648117 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 8 0 1 139 1 0 0 0 0 0 0 0 0 0 0 0 0 X 7 1 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X X THE ORGANIZATION 4842241876 PO BOX 4000 ALLENTOWN PA 18105 WILLIAM J REPPY PRESIDENT/DIRECTOR 2.00 38.00 X 0 395770 0 DAVID B BURMEISTER DO DIRECTOR 2.00 38.00 X 0 840583 35071 LYNN A COURTRIGHT SECRETARY/DIRECTOR 2.00 0.00 X X 0 0 0 LEIGH R EHRLICH TREASURER/DIRECTOR 2.00 38.00 X X 0 452774 13044 KEITH D MICUCCI VICE PRESIDENT/DIRECTOR 2.00 38.00 X X 0 242205 11228 JOHN M PIERRO MBA DIRECTOR 2.00 38.00 X 0 1269553 31107 LUIS PUENTES DIRECTOR 2.00 38.00 X 0 322127 32494 ROBERT A BEGLIOMINI PHARMD MBA FORMER PRESIDENT/DIRECTOR 0.00 40.00 X 0 713484 30611 ELIZABETH M WISE FORMER PRESIDENT/DIRECTOR 0.00 0.00 X 0 37387 802 MATTHEW P MEADE REGISTERED NURSE 40.00 0.00 X 178190 0 31382 PATRICIA E OVERTON PARAMEDIC 40.00 0.00 X 149597 0 10266 ROBERT D CONDE PARAMEDIC 40.00 0.00 X 127657 0 31107 DENNIS P GANC JR DIRECTOR OF EMS 40.00 0.00 X 123473 0 10411 MARK A DIUBALDO REGISTERED NURSE 40.00 0.00 X 119582 0 0 698499 4273883 237523 13 1 1 0 0 OUTPATIENT REVENUE 621910 11206767 11206767 SUBSIDIES FROM AFFILIATE 621910 1043744 1043744 MEMBERSHIP REVENUE 621910 237284 237284 12487795 800 0 800 800 800 12488595 12488595 0 0 5695950 5522532 173418 313198 313198 2271447 2264937 6510 457860 456655 1205 299088 299088 20864 20864 47087 47087 361537 243604 117933 111478 111478 8015 8015 -3893 -3893 481804 399551 82253 BAD DEBT EXPENSE 815600 807315 8285 PURCHASED SERVICES 153833 133085 20748 MEDICAL SUPPLIES 125053 119880 5173 SUBSCRIPTIONS & FEES 20 20 133769 -99192 232961 11292710 10648117 644593 0 3153858 10896619 13010 -13010 7002214 3510427 1148764 3491787 407136 853279 234026 0 4956794 15228675 2270865 13290582 88822 63286 415827 862207 7894548 4656206 10670062 18872281 X -5713268 -3643606 -5713268 -3643606 4956794 15228675 1195885 873777 0 X X 0 1 X 1 0 X 6474 17865 0 0 0 24339 1895545 1981614 1512999 7793797 12488595 25672550 37848 0 0 0 0 37848 1939867 1999479 1512999 7793797 12488595 25734737 0 0 0 25734737 2240 0 0 7878 0 10118 2240 7878 10118 1942107 1999479 1512999 7801675 12488595 25744855 0.99960 0.99800 0.00040 0.00080 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: MISCELLANEOUS - 2018 AMOUNT: $ 0. 2019 AMOUNT: $ 0. 2020 AMOUNT: $ 0. 2021 AMOUNT: $ 0. 2022 AMOUNT: $ 0. 30048 30048 387161 230747 156414 6337159 3023175 3313984 247846 256505 -8659 3491787 DUE TO RELATED PARTIES 4545168 CAPITAL LEASES -24261 ACCRUED PENSION 135299 4656206 X PART X, LINE 2: LEHIGH VALLEY HEALTH NETWORK (LVHN), ITS HOSPITALS, AND OTHER SUBSIDIARIES ARE GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, EXCEPT FOR TAX IMPOSED ON UNRELATED BUSINESS INCOME. THE MOST RECENT DETERMINATION LETTER, RECEIVED BY THE ORGANIZATION, IS DATED MAY 1, 2014. LVHN AND ITS SUBSIDIARIES ACCOUNT FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH ACCOUNTING STANDARDS CODIFICATION (ASC) TOPIC 740. THE ORGANIZATION'S FOR-PROFIT COMPONENTS RECOGNIZE DEFERRED TAX ASSETS AND LIABILITIES FOR THE FUTURE TAX IMPACT OF TEMPORARY DIFFERENCES BETWEEN AMOUNTS RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND THEIR RESPECTIVE TAX BASES AND THE FUTURE BENEFIT OF UTILIZATION NET OPERATING LOSS CARRYFORWARDS. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING ENACTED TAX RATES EXPECTED TO APPLY TO TAXABLE INCOME IN THE YEARS IN WHICH THOSE TEMPORARY DIFFERENCES ARE EXPECTED TO BE RECOVERED OR SETTLED. INCOME TAXES OF THE ORGANIZATION'S TAX-EXEMPT AND FOR-PROFIT COMPONENTS ARE NOT MATERIAL TO THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. X X X X X 0 1 0 0 0 0 0 0 0 WILLIAM J REPPY PRESIDENT/DIRECTOR 0 347280 0 0 0 48490 0 0 0 0 0 395770 0 0 DAVID B BURMEISTER DO DIRECTOR 0 590716 0 211397 0 38470 0 0 0 35071 0 875654 0 0 LEIGH R EHRLICH TREASURER/DIRECTOR 0 364039 0 90344 0 -1609 0 0 0 13044 0 465818 0 0 KEITH D MICUCCI VICE PRESIDENT/DIRECTOR 0 205130 0 39171 0 -2096 0 0 0 11228 0 253433 0 0 JOHN M PIERRO MBA DIRECTOR 0 873146 0 402560 0 -6153 0 0 0 31107 0 1300660 0 0 LUIS PUENTES DIRECTOR 0 271646 0 57456 0 -6975 0 0 0 32494 0 354621 0 0 ROBERT A BEGLIOMINI PHARMD MBA FORMER PRESIDENT/DIRECTOR 0 523957 0 129585 0 59942 0 0 0 30611 0 744095 0 0 ELIZABETH M WISE FORMER PRESIDENT/DIRECTOR 0 34812 0 0 0 2575 0 0 0 802 0 38189 0 0 MATTHEW P MEADE REGISTERED NURSE 174278 0 9500 0 -5588 0 0 0 31382 0 209572 0 0 0 PATRICIA E OVERTON PARAMEDIC 141270 0 9500 0 -1173 0 0 0 10266 0 159863 0 0 0 ROBERT D CONDE PARAMEDIC 124141 0 8500 0 -4984 0 0 0 31107 0 158764 0 0 0 PART I, LINE 4B THE FOLLOWING INDIVIDUAL PARTICIPATED IN THE 457(F) SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN OF LEHIGH VALLEY HOSPITAL, A RELATED ORGANIZATION, IN CALENDAR YEAR 2022: ROBERT A. BEGLIOMINI, PHARMD MBA, FORMER PRESIDENT/DIRECTOR - $61,469 THE FOLLOWING INDIVIDUAL PARTICIPATED IN THE 457(F) SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN OF LEHIGH VALLEY PHYSICIAN GROUP, A RELATED ORGANIZATION, IN CALENDAR YEAR 2022: DAVID B. BURMEISTER, DO, DIRECTOR - $45,808 THE FOLLOWING INDIVIDUAL PARTICIPATED IN THE 457(F) SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN OF LEHIGH VALLEY HOSPITAL - SCHUYLKILL, A RELATED ORGANIZATION, IN CALENDAR YEAR 2022: WILLIAM J. REPPY, PRESIDENT/DIRECTOR - $34,728 THE FOLLOWING INDIVIDUAL PARTICIPATED IN THE 457(F) SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN OF LEHIGH VALLEY HOSPITAL - POCONO, A RELATED ORGANIZATION, IN CALENDAR YEAR 2022: ELIZABETH M. WISE, FORMER PRESIDENT/DIRECTOR - $1,741 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION'S SOLE CORPORATE MEMBER IS LEHIGH VALLEY HEALTH NETWORK, INC. AS OF JANUARY 1, 2022, WEST END COMMUNITY AMBULANCE MERGED WITH AMERICAN PATIENT TRANSPORT SYSTEMS, INC., AND MEDEVAC CRITICAL CARE GROUND TO CREATE LEHIGH VALLEY HEALTH NETWORK EMERGENCY MEDICAL SERVICES (LVHN EMS). THIS MERGER DEVELOPED AN EMS BUSINESS SUBSIDIARY OF LEHIGH VALLEY HEALTH NETWORK AND CONTINUES TO FALL UNDER THE NON-PROFIT STATUS OF THE WEST END COMMUNITY AMBULANCE. FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION'S SOLE CORPORATE MEMBER, LEHIGH VALLEY HEALTH NETWORK, INC., HAS THE POWER TO ELECT, APPOINT, APPROVE, OR REJECT MEMBER'S OF THE ORGANIZATION'S GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B THE ORGANIZATION'S SOLE CORPORATE MEMBER, LEHIGH VALLEY HEALTH NETWORK, INC., HAS THE POWER TO APPROVE OR REJECT CERTAIN MAJOR OPERATING DECISIONS MADE BY THE ORGANIZATION'S GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE PROCESS TO REVIEW THE FORM 990 INCLUDES PREPARATION AND A THOROUGH REVIEW BY THE TAX DEPARTMENT. FORM 990, PART VI, SECTION B, LINE 12C IN JANUARY 2016, LVHN IMPLEMENTED AN ELECTRONIC TOOL DESIGNED TO SEND NOTIFICATIONS AND TRACK DISCLOSURES REPORTED ON CONFLICT OF INTEREST QUESTIONNAIRES. THE NETWORK ALSO EXPANDED THE SCOPE OF THE CONFLICT OF INTEREST OR COMMITMENT POLICY, SUCH THAT ADDITIONAL COLLEAGUES ARE NOW REQUIRED TO COMPLETE A QUESTIONNAIRE EACH YEAR. PRIOR TO JANUARY, THE VP, INTERNAL AUDIT AND COMPLIANCE SERVICES ISSUED A NOTICE TO BOARD MEMBERS AND MEMBERS OF THE SENIOR MANAGEMENT COUNCIL WHEN IT WAS TIME FOR THEM TO SUBMIT THEIR CONFLICT OF INTEREST QUESTIONNAIRES. THE VP ALSO INSTRUCTED MEMBERS OF THE SENIOR MANAGEMENT COUNCIL TO IDENTIFY AND REQUEST COMPLETED CONFLICT OF INTEREST QUESTIONNAIRES FROM INDIVIDUALS WHO HAD POTENTIAL CONFLICTS OF INTEREST AND TO PROVIDE HER WITH THE IDENTITY OF THOSE INDIVIDUALS. COMPLIANCE SERVICES TRACKED COMPLETION OF THE QUESTIONNAIRES. ALL PHYSICIANS ON LVHN'S MEDICAL STAFF ARE ALSO REQUIRED TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE ANNUALLY. MEDICAL STAFF SERVICES MONITORS THIS PROCESS TO ENSURE THAT ALL PHYSICIANS COMPLY. POTENTIAL CONFLICTS ARE MANAGED BY THE LVHN CONFLICT OF INTEREST COMMITTEE AND/OR BY THE BOARD OF TRUSTEES, DEPENDING ON WHOSE INTEREST(S) POSE THE CONFLICT AND THE NATURE OF THE CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 LEHIGH VALLEY HEALTH NETWORK 2023 EXECUTIVE COMPENSATION REVIEW IN COMPLIANCE WITH THE REBUTTABLE PRESUMPTION OF REASONABLENESS PROCESS OUTLINED IN THE INTERMEDIATE SANCTIONS REGULATIONS (ISSUED UNDER SECTION 4958 OF THE INTERNAL REVENUE CODE); SULLIVAN COTTER AND ASSOCIATES, INC. (SULLIVAN COTTER) QUALIFIES AS AN INDEPENDENT EXECUTIVE COMPENSATION EXPERT, SPECIALIZING IN THE HEALTH CARE INDUSTRY. SULLIVAN COTTER PROVIDES ADVICE TO THE LEHIGH VALLEY HEALTH NETWORK EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES TO SUPPORT ITS ATTAINMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTIONS REGULATIONS. THEY ALSO SUPPORT THE COMMITTEE IN ENSURING THAT THE LVHN EXECUTIVE COMPENSATION PROGRAM IS COMPETITIVE AND ALIGNED WITH THE ORGANIZATION'S EXECUTIVE COMPENSATION PHILOSOPHY. CHIEF EXECUTIVE OFFICER TOTAL COMPENSATION REVIEW: PROGRAM ANALYSIS: ANALYZE THE MARKET POSITION OF TOTAL COMPENSATION (BASE SALARY, INCENTIVE, BENEFITS, AND PERQUISITES) FOR LVHN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER (CEO) IN RELATION TO CEO MARKET DATA OBTAINED FOR A DEFINED PEER GROUP OF COMPARABLE HEALTH SYSTEMS. THIS INCLUDES THE PREPARATION OF TALLY SHEETS FOR THE PRESIDENT AND CEO AS WELL AS AN ANALYSIS OF FORM 990 COMPENSATION DATA. THEY ASSESS THE ALIGNMENT OF THE PRESIDENT AND CEO'S COMPENSATION WITH LVHN'S COMPENSATION PHILOSOPHY AND NOTE THE IMPLICATIONS OF THE REVIEW. SULLIVAN COTTER'S ANALYSES AND FINDINGS ARE SUMMARIZED IN A REPORT TO THE COMMITTEE THAT PROVIDES A REASONABLENESS OPINION FOR THE INTERMEDIATE SANCTIONS COMPLIANCE. THE REPORT WAS PROVIDED BY SULLIVAN COTTER AT THE AUGUST 16, 2022 EXECUTIVE COMPENSATION COMMITTEE MEETING. CEO COUNCIL EXECUTIVE TOTAL COMPENSATION REVIEW: PROGRAM ANALYSIS: ANALYZE THE MARKET POSITION OF TOTAL COMPENSATION (SALARIES, INCENTIVES, BENEFITS, AND PERQUISITES) FOR LVHN'S CEO COUNCIL EXECUTIVES (APPROXIMATELY 10 TOTAL POSITIONS) IN RELATION TO COMPARABLE POSITIONS IN PEER ORGANIZATIONS. THIS INCLUDES THE PREPARATION OF TALLY SHEETS FOR EACH INDIVIDUAL. SULLIVAN COTTER'S ANALYSES AND FINDINGS ARE SUMMARIZED IN A REPORT TO THE COMMITTEE THAT ALSO PROVIDES AN OPINION OF REASONABLENESS FOR INTERMEDIATE SANCTIONS COMPLIANCE. THE REPORT WAS PROVIDED BY SULLIVAN COTTER AT THE AUGUST 16, 2022 EXECUTIVE COMPENSATION COMMITTEE MEETING. SUMMARY OF METHODOLOGY TO CONDUCT THIS ANALYSIS, SULLIVAN COTTER: COLLECTED BACKGROUND INFORMATION REGARDING LVHN'S OPERATIONS, STRUCTURE, SIZE AND SCOPE, AS WELL AS EACH POSITION'S DUTIES. COMPILED MARKET DATA FOR CEO COUNCIL EXECUTIVES CONSISTENT WITH THE EXECUTIVE COMPENSATION PHILOSOPHY APPROVED BY THE COMMITTEE DURING ITS SEPTEMBER 22, 2022 MEETING: THE MARKET DATA USED FOR LVHN SYSTEM EXECUTIVES IN THIS ASSESSMENT ARE AN EQUALLY WEIGHTED BLEND OF: (1) LVHN'S COMMITTEE-APPROVED PEER GROUP OF 25 NOT-FOR-PROFIT HEALTH SYSTEMS LOCATED IN THE NORTHEAST (EXCLUDING NEW YORK CITY) WITH NET OPERATING REVENUES BETWEEN $2.0 BILLION AND $9.0 BILLION (MEDIAN OF $3.2 BILLION); AND (2) NATIONAL DATA REFLECTING ORGANIZATIONS OF SIMILAR SCOPE AND SIZE TO LVHN. PEER GROUP AND NATIONAL MARKET DATA WERE ABSTRACTED FROM SULLIVAN COTTER'S 2022 SURVEY OF MANAGER AND EXECUTIVE COMPENSATION IN HOSPITALS AND HEALTH SYSTEMS, AS WELL AS OTHER PUBLISHED COMPENSATION SURVEYS REFLECTING PAY AT COMPARABLY SIZED ORGANIZATIONS, WHICH INCLUDED NATIONAL HOSPITALS AND NATIONAL MEDICAL GROUPS. COMPILED MARKET DATA FOR THE LVHN CLINICAL CHAIRS PREPARED BY THE ASSOCIATION OF AMERICAN MEDICAL COLLEGES (AAMC) FOR THE CHAIRS OF CLINICAL DEPARTMENTS IN MEDICAL SCHOOLS, LVHN'S TRADITIONAL COMPARATOR GROUP FOR THESE JOBS. ADJUSTED THE MARKET DATA TO AN EFFECTIVE DATE OF JANUARY 1, 2023 AT AN ANNUALIZED RATE OF 3.0% BASED ON SALARY INCREASE TRENDS. COMPARED EACH COMPONENT OF LVHN'S BENEFIT PROGRAM AGAINST TYPICAL MARKET BENEFIT PRACTICES IN HEALTH SYSTEMS AND HOSPITALS BASED ON MULTIPLE PUBLISHED SURVEYS, SUPPLEMENTED BY SULLIVAN COTTER'S PROPRIETARY DATA AND EXPERIENCE. DEVELOPED MARKET TOTAL COMPENSATION DATA BY COMBINING MARKET TCC WITH TYPICAL MARKET BENEFIT COSTS. COMPARED LVHN'S TC TO MARKET RATES AND ASSESSED OVERALL POSITIONING. FOR PHYSICIAN EXECUTIVES HAVING BOTH CLINICAL AND ADMINISTRATIVE ROLES, RELEVANT MARKET DATA WERE COLLECTED BASED ON FTE ALLOCATION. SULLIVAN COTTER HAS NOT COMPLETED AN ASSESSMENT OF THE PHYSICIANS' PRODUCTIVITY OR THE FAIR MARKET VALUE (FMV) OF THEIR CLINICAL COMPENSATION, AS LVHN HAS ADVISED THAT SUCH AMOUNTS ARE APPROPRIATE AND WITHIN FMV. SULLIVAN COTTER USED THE FOLLOWING METHODOLOGY TO ASSESS THE COMPETITIVENESS AND REASONABLENESS OF LVHN'S EXECUTIVE TOTAL COMPENSATION LEVELS: COLLECTED BACKGROUND INFORMATION REGARDING LVHN'S OPERATIONS, STRUCTURE, SIZE AND SCOPE. COLLECTED INFORMATION ON EACH CEO COUNCIL EXECUTIVE MEMBER'S CURRENT COMPENSATION. DATA COLLECTED INCLUDE BASE SALARIES, ANNUAL INCENTIVE OPPORTUNITY LEVELS (TARGET AND MAXIMUM), ACTUAL ANNUAL INCENTIVE PAYOUT AMOUNTS, ANNUAL COSTS OF ALL STANDARD AND SUPPLEMENTAL BENEFITS AND ANNUAL COST AND DESCRIPTION OF EXECUTIVE PERQUISITES. REVIEWED JOB DESCRIPTIONS AND ORGANIZATIONAL CHARTS TO IDENTIFY EACH POSITION'S FUNCTIONAL RESPONSIBILITIES AND REPORTING RELATIONSHIPS. SELECTED THE APPROPRIATE BENCHMARK POSITION MATCH FOR EACH POSITION AND APPLIED PREMIUMS/DISCOUNTS TO THE MARKET DATA IN INSTANCES WHERE LVHN'S JOB DUTIES DIFFER MATERIALLY FROM BENCHMARK POSITION MATCHES. POSITION MATCHES AND MARKET ADJUSTMENTS WERE REVIEWED WITH LVHN'S SENIOR VICE PRESIDENT, HUMAN RESOURCES AND COMPENSATION STAFF. LVHN'S PROJECTED FY2022 NET REVENUES AND PHYSICIAN FTE'S WERE USED AS THE SCOPE SIZE FOR EACH ENTITY. FORM 990, PART VI, SECTION C, LINE 18 ANOTHER'S WEBSITE - GUIDESTAR. UPON REQUEST - HARD COPIES WITH SENIOR MANAGEMENT AND MARKETING DEPARTMENT. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC THROUGH ITS ANNUAL REPORT TO THE COMMUNITY. THE ANNUAL REPORT IS DISTRIBUTED TO ALL ATTENDEES AT THE ORGANIZATIONS ANNUAL PUBLIC MEETING. THE ANNUAL REPORT IS AVAILABLE ON THE ORGANIZATION'S WEBSITE - WWW.LVHN.ORG. IN ADDITION, IT IS DISTRIBUTED VIA MAIL TO MEMBERS OF THE COMMUNITY. THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART XII, LINE 2C: THE SOLE CORPORATE MEMBER OF THE ORGANIZATION, LEHIGH VALLEY HEALTH NETWORK, ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. FAMILY CARE CENTERS INC PO BOX 4000 ALLENTOWN PA 181054000 232349341 PHYSICIAN PRACTICE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY PHYSICIAN GROUP 0 HAZLETON HEALTH & WELLNESS CENTER PO BOX 4000 ALLENTOWN PA 181054000 232580968 STAFFING SERVICES PA 501(C)(3) LINE 12B, II LEHIGH VALLEY HOSPITAL - HAZLETON 0 HAZLETON PROFESSIONAL SERVICES PO BOX 4000 ALLENTOWN PA 181054000 205880364 PHYSICIAN PRACTICE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY PHYSICIAN GROUP 0 HAZLETON SURGICAL ALLIANCE PO BOX 4000 ALLENTOWN PA 181054000 202038456 SURGICAL SERVICES PA 501(C)(3) LINE 3 LEHIGH VALLEY HOSPITAL - HAZLETON 0 LEHIGH VALLEY HEALTH NETWORK PO BOX 4000 ALLENTOWN PA 181054000 222458317 PARENT COMPANY PA 501(C)(3) LINE 12C, III-FI N/A 0 LEHIGH VALLEY HEALTH NETWORK REALTY HOLDING CO PO BOX 4000 ALLENTOWN PA 181054000 232586770 REAL ESTATE HOLDING CO. PA 501(C)(2) LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY HOSPITAL PO BOX 4000 ALLENTOWN PA 181054000 231689692 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY HOSPITAL - COORDINATED HEALTH ALLENTOWN (FINAL 8-9-2022) PO BOX 4000 ALLENTOWN PA 181054000 843843850 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY HOSPITAL - HAZLETON PO BOX 4000 ALLENTOWN PA 181054000 232421970 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY HOSPITAL - POCONO PO BOX 4000 ALLENTOWN PA 181054000 240795623 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 POCONO HEALTH SYSTEM 0 LEHIGH VALLEY HOSPITAL - SCHUYLKILL PO BOX 4000 ALLENTOWN PA 181054000 231352202 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 LEHIGH VALLEY PHYSICIAN GROUP PO BOX 4000 ALLENTOWN PA 181054000 232700908 PHYSICIAN PRACTICE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 LEONARD PARKER POOL INSTITUTE FOR HEALTH PO BOX 4000 ALLENTOWN PA 181054000 851211082 SUPPORT RELATED ORGANIZATIONS PA 501(C)(3) LINE 3 LEHIGH VALLEY HOSPITAL 0 LVHN AMBULATORY SURGERY CENTER OF LOPATCONG INC PO BOX 4000 ALLENTOWN PA 181054000 844004771 HEALTH CARE ORGANIZATION NJ 501(C)(3) LINE 3 LEHIGH VALLEY HOSPITAL 0 LVHN COORDINATED PROFESSIONAL PRACTICE (FINAL 11-14-2022) PO BOX 4000 ALLENTOWN PA 181054000 843878831 PHYSICIAN PRACTICE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HOSPITAL 0 LVHN SCRANTON ORTHOPEDIC SPECIALISTS (FINAL 11-14-2022) PO BOX 4000 ALLENTOWN PA 181054000 843987128 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY HEALTH NETWORK 0 MUHLENBERG REALTY CORPORATION PO BOX 4000 ALLENTOWN PA 181054000 232245513 REAL ESTATE RENTALS PA 501(C)(3) LINE 12C, III-FI LEHIGH VALLEY HEALTH NETWORK 0 POCONO AMBULATORY SERVICES INC PO BOX 4000 ALLENTOWN PA 181054000 232611474 HEALTH CARE ORGANIZATION PA 501(C)(3) LINE 3 POCONO HEALTH SYSTEM 0 POCONO HEALTH 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