2025-05-08T09:29:21-05:00 2024-06-30 990 2023-10-01 232532377 LEHIGH VALLEY HEALTH NETWORK EMERGENCY MEDICAL SERVICES LEHI 4842241876 PO BOX 4000 ALLENTOWN PA 18105 ROBERT THOMAS TREASURER 4842241876 2025-05-08 0 2023 2025-03-06 01:10:19Z LVHN EMS ROBERT THOMAS PO BOX 4000 ALLENTOWN PA 18105 9792492 0 X WWW.LVHN.ORG X 1955 PA EMERGENCY RESPONSE AND AMBULANCE TRANSPORT. 7 1 146 0 0 0 0 30405 12487795 9729612 800 32475 0 0 12488595 9792492 0 0 0 0 8738455 6624233 0 0 0 2554255 1861310 11292710 8485543 1195885 1306949 15228675 15521871 18872281 18966333 -3643606 -3444462 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 8088769 9762087 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 FY24 WAS OVER 4,700 CALLS FOR EMERGENCY MEDICAL SERVICES AND PATIENT MOVEMENT. THE OTHER PRE-HOSPITAL LOCATION IS THE HAZLETON OPERATIONS WHICH IS THE PRIMARY AMBULANCE SERVICE FOR THE CITY OF HAZLETON, HAZLE TOWNSHIP AND BOROUGH OF WEST HAZLETON IN LUZERNE COUNTY, BEAVER MEADOWS, AND THE BOROUGH OF WEATHERLY IN CARBON COUNTY AND SHEPPTON-ONIEDA AND EAST UNION TOWNSHIP IN SCHUYLKILL COUNTY. OUR HAZLETON OPERATIONS ARE ALSO THE PRIMARY ALS PROVIDER FOR MCADOO, RUSH TWP, RYAN TWP, IN SCHUYLKILL COUNTY, AND BANKS TOWNSHIP IN CARBON COUNTY.THE HAZLETON OPERATIONS SERVES 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 FY24 THE HAZLETON OPERATIONS RESPONDED TO OVER 8,800 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. THE MEDEVAC CRITICAL CARE GROUND VOLUME FOR FY24 WAS 1,449 TRANSPORTS FOR EMERGENCY MEDICAL SERVICES AND PATIENT MOVEMENT FOR HIGHER LEVEL OF CARE. LVHN EMS WEST END OPERATIONS HAS SERVED AS THE PRIMARY EVENT MEDICAL TEAM FOR THE WEST END FAIR FOR OVER TWENTY-FIVE YEARS. IN 2024, AN ESTIMATED 100,000 PLUS PEOPLE AGAIN ATTENDED THE 102ND ANNUAL WEST END FAIR. LVHN EMS WEST END OPERATIONS EMPLOYS 23 FULLTIME ADVANCED AND BASIC LIFE SUPPORT PROVIDERS AND 15 PER DIEM PROVIDERS; THE HAZLETON OPERATIONS EMPLOYS 36 FULLTIME AND 11 PER DIEM ADVANCED AND BASIC LIFE SUPPORT PROVIDERS, 4 FULL TIME DISPATCHERS, 1 PER DIEM DISPATCHER, 1 FULL TIME ADMINISTRATIVE COORDINATOR 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. IN THIS PAST YEAR OUR PRE-HOSPITAL SERVICE HAS ORDERED 4 ADDITIONAL AMBULANCES THAT ARE AWAITING DELIVERY IN DECEMBER 2024 TO IMPROVE OUR FLEET DEPENDABILITY AND SAFETY FOR CREWS AND PATIENTS. THE PURPOSE OF A VEHICLE REPLACEMENT PLAN IS TO ENSURE THAT WE HAVE THE LATEST AND BEST EQUIPMENT TO KEEP OUR CREWS AND PATIENTS SAFE WHEN RESPONDING AND TRANSPORTING TO HOSPITAL. WE ALSO PURCHASED AND PUT INTO SERVICE IN THE PAST YEAR 10 SAPPHIRE INFUSION PUMPS TO ALLOW OUR ALS PROVIDERS TO SAFELY MOVE PATIENTS FROM HOSPITAL TO HOSPITAL AND PROVIDE NEEDED ANTIBIOTIC MEDICATION IN PRE-HOSPITAL EMERGENCY SITUATIONS THAT INVOLVE TRAUMA PATIENTS. WE HAVE ALSO ADDED BLOOD VIALS TO ALL UNITS IN THE HAZLETON OPERATIONS TO PROVIDE PRE-HOSPITAL BLOOD DRAWS TO EXPEDITE PATIENT LABS ONCE THEY ARRIVE AT THE EMERGENCY DEPARTMENT DOORS TO HELP THE HOSPITAL TEAM DIAGNOSE AND PROVIDE FASTER CARE FOR THE PATIENTS. 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. -- THIS PAST YEAR WE ALSO PROVIDED ALS/BLS SERVICES FOR POCONO RACEWAY FOR THE NASCAR EVENTS AND ELEMENTS EVENTS. IN THE CITY OF HAZLETON, WE PROVIDED THESE SAME SERVICES FOR MULTIPLE SUMMER CONCERTS AND FIREWORKS EVENTS ON A WEEKLY BASIS. 8088769 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 1 146 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 X DAVID B BURMEISTER DO DIRECTOR 2.00 38.00 X 0 731100 24845 LYNN A COURTRIGHT SECRETARY/DIRECTOR 2.00 0.00 X X 0 0 0 PATRICK MACMILLAN TREASURER/DIRECTOR 2.00 38.00 X X 0 313767 732 KEITH D MICUCCI VICE PRESIDENT/VICE CHAIRPERSON/DIRECTOR 2.00 38.00 X X 0 263055 8592 JOHN M PIERRO MBA DIRECTOR 2.00 38.00 X 0 1436806 25459 JOSEPH L PINTO PRESIDENT/CHAIRPERSON/DIRECTOR 2.00 38.00 X 0 164984 10375 LUIS PUENTES DIRECTOR 2.00 38.00 X 0 348579 26641 MATTHEW P MEADE CRITICAL CARE TRANSPORT TEAM LEAD 40.00 0.00 X 173541 0 25687 PATRICIA E OVERTON PARAMEDIC 40.00 0.00 X 140192 0 9114 DENNIS P GANC JR DIRECTOR, PRE-HOSPITAL EMS 40.00 0.00 X 117059 0 8674 MARK A DIUBALDO CRITICAL CARE TRANSPORT TEAM LEAD 40.00 0.00 X 115022 0 344 MICHAEL P PRIBILA MANAGER, EMS OPERATIONS 40.00 0.00 X 112957 0 339 ROBERT A BEGLIOMINI PHARMD MBA FORMER PRESIDENT/DIRECTOR 0.00 40.00 X 0 828521 26473 LEIGH R EHRLICH FORMER TREASURER/DIRECTOR 0.00 40.00 X 0 452160 10471 WILLIAM J REPPY FORMER PRESIDENT/DIRECTOR 0.00 40.00 X 0 443800 498 658771 4982772 178244 10 1 1 0 0 30405 30405 OUTPATIENT REVENUE 621910 9572190 9572190 MEMBERSHIP REVENUE 621910 135599 135599 SUBSIDIES FROM AFFILIA 621910 21823 21823 9729612 32475 0 32475 32475 32475 9792492 9762087 0 0 4883813 4718924 164889 214865 214014 851 1139836 1139806 30 385719 378676 7043 222468 221326 1142 26464 26464 70908 70158 750 265230 148787 116443 63773 63773 7064 7064 394 394 389290 328317 60973 BAD DEBT EXPENSE 566364 525847 40517 MEDICAL SUPPLIES 92207 92046 161 PURCHASED SERVICES 71378 67143 4235 85770 86030 -260 8485543 8088769 396774 0 0 1231948 10896619 11037462 -13010 8627 6123826 3390457 3491787 2733369 853279 510465 15228675 15521871 13290582 462309 63286 92226 862207 518741 4656206 17893057 18872281 18966333 X -3643606 -3444462 -3643606 -3444462 15228675 15521871 1306949 -1107805 0 X X 0 1 X 1 0 X 17865 30405 48270 1981614 1512999 7793797 12488595 9762087 33539092 1999479 1512999 7793797 12488595 9792492 33587362 0 0 0 33587362 7878 7878 7878 7878 1999479 1512999 7801675 12488595 9792492 33595240 0.99980 0.99960 0.00020 0.00040 X 30048 30048 542938 245760 297178 5204255 2909036 2295219 346585 235661 110924 2733369 DUE TO/FROM AFFILIATES 17824264 ACCRUED PENSION 68793 17893057 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 1 1 0 0 0 0 0 0 0 DAVID B BURMEISTER DO DIRECTOR 0 608437 0 87738 0 34925 0 0 0 24845 0 755945 0 0 PATRICK MACMILLAN TREASURER/DIRECTOR 0 278144 0 35056 0 567 0 0 0 732 0 314499 0 0 KEITH D MICUCCI VICE PRESIDENT/VICE CHAIRPERSON/DIRE 0 215165 0 44966 0 2924 0 0 0 8592 0 271647 0 0 JOHN M PIERRO MBA DIRECTOR 0 956879 0 280529 0 199398 0 0 0 25459 0 1462265 0 0 JOSEPH L PINTO PRESIDENT/CHAIRPERSON/DIRECTOR 0 133269 0 35000 0 -3285 0 0 0 10375 0 175359 0 0 LUIS PUENTES DIRECTOR 0 324692 0 31994 0 -8107 0 0 0 26641 0 375220 0 0 MATTHEW P MEADE CRITICAL CARE TRANSPORT TEAM LEAD 178844 0 1700 0 -7003 0 0 0 25687 0 199228 0 0 0 ROBERT A BEGLIOMINI PHARMD MBA FORMER PRESIDENT/DIRECTOR 0 651504 0 103320 0 73697 0 0 0 26473 0 854994 0 0 LEIGH R EHRLICH FORMER TREASURER/DIRECTOR 0 388817 0 65197 0 -1854 0 0 0 10471 0 462631 0 0 WILLIAM J REPPY FORMER PRESIDENT/DIRECTOR 0 316426 0 38756 0 88618 0 0 0 498 0 444298 0 0 PART I, LINES 4A-B THE FOLLOWING INDIVIDUAL PARTICIPATED IN THE 457(F) SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN OF LEHIGH VALLEY HOSPITAL, A RELATED ORGANIZATION, IN CALENDAR YEAR 2023: ROBERT A. BEGLIOMINI, PHARMD MBA, FORMER PRESIDENT/DIRECTOR - $75,482 THE FOLLOWING INDIVIDUAL PARTICIPATED IN THE 457(F) SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN OF LEHIGH VALLEY PHYSICIAN GROUP, A RELATED ORGANIZATION, IN CALENDAR YEAR 2023: DAVID B. BURMEISTER, DO, DIRECTOR - $43,859 THE FOLLOWING INDIVIDUAL PARTICIPATED IN THE 457(F) SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN OF LEHIGH VALLEY HOSPITAL - SCHUYLKILL, A RELATED ORGANIZATION, IN CALENDAR YEAR 2023: WILLIAM J. REPPY, FORMER PRESIDENT/DIRECTOR - $36,066 THE FOLLOWING INDIVIDUAL RECEIVED A SEVERANCE PAYMENT FROM LEHIGH VALLEY HOSPITAL - SCHUYLKILL, A RELATED ORGANIZATION, IN CALENDAR YEAR 2023: WILLIAM J. REPPY, FORMER PRESIDENT/DIRECTOR - $41,878 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'S INCLUDES: DRAFT 1 OF THE RETURNS IS REVIEWED IN DETAIL WITH A FOCUS ON ACCURACY, COMPLETENESS, AND PERSPECTIVE BY THE LVHN VICE-PRESIDENT, FINANCE & CONTROLLER. DRAFT 2 OF THE RETURNS IS REVIEWED BY THE EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER. ALL COMPENSATION DISCLOSURES ARE REVIEWED BY THE DIRECTOR, COMPENSATION - HUMAN RESOURCES. DRAFT 3 OF THE RETURNS IS REVIEWED TOGETHER WITH THE PRESIDENT & CEO, THE EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER, THE VICE-PRESIDENT, FINANCE & CONTROLLER, AND THE ADMINISTRATOR, TAX. FINAL RETURNS ARE PROVIDED TO THE FULL BOARD PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C IN JANUARY 2016, LVHN IMPLEMENTED AN ELECTRONIC TOOL DESIGNED TO SEND NOTIFICATIONS AND TRACK DISCLOSURES REPORTED ON CONFLICT OF INTEREST QUESTIONNAIRES. THE NETWORK ALSO EXPANDED THE SCOPE OF THE CONFLICT OF INTEREST OR COMMITMENT POLICY, SUCH THAT ADDITIONAL COLLEAGUES ARE NOW REQUIRED TO COMPLETE A QUESTIONNAIRE EACH YEAR. PRIOR TO JANUARY, THE VP, INTERNAL AUDIT AND COMPLIANCE SERVICES ISSUED A NOTICE TO BOARD MEMBERS AND MEMBERS OF THE SENIOR MANAGEMENT COUNCIL WHEN IT WAS TIME FOR THEM TO SUBMIT THEIR CONFLICT OF INTEREST QUESTIONNAIRES. THE VP ALSO INSTRUCTED MEMBERS OF THE SENIOR MANAGEMENT COUNCIL TO IDENTIFY AND REQUEST COMPLETED CONFLICT OF INTEREST QUESTIONNAIRES FROM INDIVIDUALS WHO HAD POTENTIAL CONFLICTS OF INTEREST AND TO PROVIDE HER WITH THE IDENTITY OF THOSE INDIVIDUALS. COMPLIANCE SERVICES TRACKED COMPLETION OF THE QUESTIONNAIRES. ALL PHYSICIANS ON LVHN'S MEDICAL STAFF ARE ALSO REQUIRED TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE ANNUALLY. MEDICAL STAFF SERVICES MONITORS THIS PROCESS TO ENSURE THAT ALL PHYSICIANS COMPLY. POTENTIAL CONFLICTS ARE MANAGED BY THE LVHN CONFLICT OF INTEREST COMMITTEE AND/OR BY THE BOARD OF TRUSTEES, DEPENDING ON WHOSE INTEREST(S) POSE THE CONFLICT AND THE NATURE OF THE CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 LEHIGH VALLEY HEALTH NETWORK 2024 EXECUTIVE COMPENSATION REVIEW IN COMPLIANCE WITH THE REBUTTABLE PRESUMPTION OF REASONABLENESS PROCESS OUTLINED IN THE INTERMEDIATE SANCTIONS REGULATIONS (ISSUED UNDER SECTION 4958 OF THE INTERNAL REVENUE CODE); SULLIVAN COTTER AND ASSOCIATES, INC. (SULLIVAN COTTER) QUALIFIES AS AN INDEPENDENT EXECUTIVE COMPENSATION EXPERT, SPECIALIZING IN THE HEALTH CARE INDUSTRY. SULLIVAN COTTER PROVIDES ADVICE TO THE LEHIGH VALLEY HEALTH NETWORK EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES TO SUPPORT ITS ATTAINMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTIONS REGULATIONS. THEY ALSO SUPPORT THE COMMITTEE IN ENSURING THAT THE LVHN EXECUTIVE COMPENSATION PROGRAM IS COMPETITIVE AND ALIGNED WITH THE ORGANIZATION'S EXECUTIVE COMPENSATION PHILOSOPHY. CHIEF EXECUTIVE OFFICER TOTAL COMPENSATION REVIEW: PROGRAM ANALYSIS: ANALYZE THE MARKET POSITION OF TOTAL COMPENSATION (BASE SALARY, INCENTIVE, BENEFITS, AND PERQUISITES) FOR LVHN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER (CEO) IN RELATION TO CEO MARKET DATA OBTAINED FOR A DEFINED PEER GROUP OF COMPARABLE HEALTH SYSTEMS. THIS INCLUDES THE PREPARATION OF TALLY SHEETS FOR THE PRESIDENT AND CEO AS WELL AS AN ANALYSIS OF FORM 990 COMPENSATION DATA. THEY ASSESS THE ALIGNMENT OF THE PRESIDENT AND CEO'S COMPENSATION WITH LVHN'S COMPENSATION PHILOSOPHY AND NOTE THE IMPLICATIONS OF THE REVIEW. SULLIVAN COTTER'S ANALYSES AND FINDINGS ARE SUMMARIZED IN A REPORT TO THE COMMITTEE THAT PROVIDES A REASONABLENESS OPINION FOR THE INTERMEDIATE SANCTIONS COMPLIANCE. THE REPORT WAS PROVIDED BY SULLIVAN COTTER AT THE JULY 19, 2023 EXECUTIVE COMPENSATION COMMITTEE MEETING. CEO COUNCIL EXECUTIVE TOTAL COMPENSATION REVIEW: PROGRAM ANALYSIS: ANALYZE THE MARKET POSITION OF TOTAL COMPENSATION (SALARIES, INCENTIVES, BENEFITS, AND PERQUISITES) FOR LVHN'S CEO COUNCIL EXECUTIVES (APPROXIMATELY 10 TOTAL POSITIONS) IN RELATION TO COMPARABLE POSITIONS IN PEER ORGANIZATIONS. THIS INCLUDES THE PREPARATION OF TALLY SHEETS FOR EACH INDIVIDUAL. SULLIVAN COTTER'S ANALYSES AND FINDINGS ARE SUMMARIZED IN A REPORT TO THE COMMITTEE THAT ALSO PROVIDES AN OPINION OF REASONABLENESS FOR INTERMEDIATE SANCTIONS COMPLIANCE. THE REPORT WAS PROVIDED BY SULLIVAN COTTER AT THE JULY 19, 2023 EXECUTIVE COMPENSATION COMMITTEE MEETING. SUMMARY OF METHODOLOGY TO CONDUCT THIS ANALYSIS, SULLIVAN COTTER: COLLECTED BACKGROUND INFORMATION REGARDING LVHN'S OPERATIONS, STRUCTURE, SIZE AND SCOPE, AS WELL AS EACH POSITION'S DUTIES. COMPILED MARKET DATA FOR CEO COUNCIL EXECUTIVES CONSISTENT WITH THE EXECUTIVE COMPENSATION PHILOSOPHY APPROVED BY THE COMMITTEE DURING ITS SEPTEMBER 18, 2023 MEETING: THE MARKET DATA USED FOR LVHN SYSTEM EXECUTIVES IN THIS ASSESSMENT ARE AN EQUALLY WEIGHTED BLEND OF: (1) LVHN'S COMMITTEE-APPROVED PEER GROUP OF 25 NOT-FOR-PROFIT HEALTH SYSTEMS LOCATED IN THE NORTHEAST (EXCLUDING NEW YORK CITY) WITH NET OPERATING REVENUES BETWEEN $2.1 BILLION AND $9.3 BILLION (MEDIAN OF $3.8 BILLION); AND (2) NATIONAL DATA REFLECTING ORGANIZATIONS OF SIMILAR SCOPE AND SIZE TO LVHN. PEER GROUP AND NATIONAL MARKET DATA WERE ABSTRACTED FROM SULLIVAN COTTER'S 2022 SURVEY OF MANAGER AND EXECUTIVE COMPENSATION IN HOSPITALS AND HEALTH SYSTEMS, AS WELL AS OTHER PUBLISHED COMPENSATION SURVEYS REFLECTING PAY AT COMPARABLY SIZED ORGANIZATIONS, WHICH INCLUDED NATIONAL HOSPITALS AND NATIONAL MEDICAL GROUPS. COMPILED MARKET DATA FOR THE LVHN CLINICAL CHAIRS PREPARED BY THE ASSOCIATION OF AMERICAN MEDICAL COLLEGES (AAMC) FOR THE CHAIRS OF CLINICAL DEPARTMENTS IN MEDICAL SCHOOLS, LVHN'S TRADITIONAL COMPARATOR GROUP FOR THESE JOBS. ADJUSTED THE MARKET DATA TO AN EFFECTIVE DATE OF JANUARY 1, 2024 AT AN ANNUALIZED RATE OF 3.0% BASED ON SALARY INCREASE TRENDS. COMPARED EACH COMPONENT OF LVHN'S BENEFIT PROGRAM AGAINST TYPICAL MARKET BENEFIT PRACTICES IN HEALTH SYSTEMS AND HOSPITALS BASED ON MULTIPLE PUBLISHED SURVEYS, SUPPLEMENTED BY SULLIVAN COTTER'S PROPRIETARY DATA AND EXPERIENCE. DEVELOPED MARKET TOTAL COMPENSATION DATA BY COMBINING MARKET TCC WITH TYPICAL MARKET BENEFIT COSTS. COMPARED LVHN'S TC TO MARKET RATES AND ASSESSED OVERALL POSITIONING. FOR PHYSICIAN EXECUTIVES HAVING BOTH CLINICAL AND ADMINISTRATIVE ROLES, RELEVANT MARKET DATA WERE COLLECTED BASED ON FTE ALLOCATION. SULLIVAN COTTER HAS NOT COMPLETED AN ASSESSMENT OF THE PHYSICIANS' PRODUCTIVITY OR THE FAIR MARKET VALUE (FMV) OF THEIR CLINICAL COMPENSATION, AS LVHN HAS ADVISED THAT SUCH AMOUNTS ARE APPROPRIATE AND WITHIN FMV. SULLIVAN COTTER USED THE FOLLOWING METHODOLOGY TO ASSESS THE COMPETITIVENESS AND REASONABLENESS OF LVHN'S EXECUTIVE TOTAL COMPENSATION LEVELS: COLLECTED BACKGROUND INFORMATION REGARDING LVHN'S OPERATIONS, STRUCTURE, SIZE AND SCOPE. COLLECTED INFORMATION ON EACH CEO COUNCIL EXECUTIVE MEMBER'S CURRENT COMPENSATION. DATA COLLECTED INCLUDE BASE SALARIES, ANNUAL INCENTIVE OPPORTUNITY LEVELS (TARGET AND MAXIMUM), ACTUAL ANNUAL INCENTIVE PAYOUT AMOUNTS, ANNUAL COSTS OF ALL STANDARD AND SUPPLEMENTAL BENEFITS AND ANNUAL COST AND DESCRIPTION OF EXECUTIVE PERQUISITES. REVIEWED JOB DESCRIPTIONS AND ORGANIZATIONAL CHARTS TO IDENTIFY EACH POSITION'S FUNCTIONAL RESPONSIBILITIES AND REPORTING RELATIONSHIPS. SELECTED THE APPROPRIATE BENCHMARK POSITION MATCH FOR EACH POSITION AND APPLIED PREMIUMS/DISCOUNTS TO THE MARKET DATA IN INSTANCES WHERE LVHN'S JOB DUTIES DIFFER MATERIALLY FROM BENCHMARK POSITION MATCHES. POSITION MATCHES AND MARKET ADJUSTMENTS WERE REVIEWED WITH LVHN'S SENIOR VICE PRESIDENT, HUMAN RESOURCES AND COMPENSATION STAFF. LVHN'S PROJECTED FY2023 NET REVENUES AND PHYSICIAN FTE'S WERE USED AS THE SCOPE SIZE FOR EACH ENTITY. FORM 990, PART VI, SECTION C, LINE 18 ANOTHER'S WEBSITE - GUIDESTAR. UPON REQUEST - HARD COPIES WITH SENIOR MANAGEMENT AND MARKETING DEPARTMENT. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC THROUGH ITS ANNUAL REPORT TO THE COMMUNITY. THE ANNUAL REPORT IS DISTRIBUTED TO ALL ATTENDEES AT THE 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 VII, SECTION A: THE COMPENSATION REPORTED FOR INDIVIDUALS ON THIS FORM 990 REFLECTS RENUMERATION FOR THEIR DUTIES AS EMPLOYEES OF THE ORGANIZATION AND/OR RELATED ORGANIZATIONS. THESE EMPLOYEES DO NOT RECEIVE COMPENSATION PERTAINING TO THEIR ROLES AS TRUSTEES AND/OR OFFICERS. 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 HEALTH NETWORK 0 HAZLETON PROFESSIONAL SERVICES PO BOX 4000 ALLENTOWN PA 181054000 205880364 PHYSICIAN PRACTICE ORGANIZATION PA 501(C)(3) LINE 3 LEHIGH VALLEY PHYSICIAN GROUP 0 HAZLETON SURGICAL ALLIANCE (FINAL 12-31-2023) PO BOX 4000 ALLENTOWN PA 181054000 202038456 SURGICAL SERVICES PA 501(C)(3) LINE 3 LEHIGH VALLEY HOSPITAL - HAZLETON 0 LEHIGH VALLEY HEALTH NETWORK PO BOX 4000 ALLENTOWN PA 181054000 222458317 PARENT COMPANY PA 501(C)(3) LINE 12C, III-FI N/A 0 LEHIGH VALLEY HEALTH NETWORK REALTY HOLDING COMPANY (FINAL 03-31-2024) PO BOX 4000 ALLENTOWN PA 181054000 232586770 REAL ESTATE HOLDING CO. 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