Sacred Heart Hospital of Allentown

“Prior to its statutory merger on january 31, 2021, the organization was 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 sacred heart hospital of allentown, 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.”

“Prior to its statutory merger on january 31, 2021, the organization was 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. This organization outsourced all of its finance functions including but not limited to, accounting, finance, payroll, accounts payable and tax, to st. Luke's health network, inc.; a related internal revenue code section 501(c)(3) tax-exempt organization. Thomas p. Lichtenwalner was the senior vice president of finance/chief financial officer of the network. Mr. Lichtenwalner received 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. However, his common law employer/employee relationship is with st. Luke's health network, inc. Mr. Lichtenwalner'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. Form 990 for this information.”

“Effective with the close of business on january 31, 2021, this organization was statutorily merged into st. Luke's hospital of bethlehem, pennsylvania; a related internal revenue code section 501(c)(3) tax-exempt organization. The organization's governing documents have been updated accordingly.”

“Prior to its statutory merger on january 31, 2021, st. Luke's health network, inc. ("slhn") was the sole member of this organization. Slhn had the right to elect the members of this organization's board of directors and had certain reserved powers as defined in this organization's bylaws.”

“Prior to its statutory merger on january 31, 2021, the organization was 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 directors) 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 directors 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.”

“Prior to its statutory merger on january 31, 2021, the organization was 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, directors, board committee members and senior managers 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 director discloses an interest that could give rise to a conflict, the director's potential conflict may be disclosed to the organization's governing body, which evaluates the conflict and its potential impact on the director's participation on the board. After consultation and discussion the board of directors may take action, if appropriate and necessary, to address any such conflict in a manner consistent with the network's conflict of interest policy.”

“Prior to its statutory merger on january 31, 2021, the organization was 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.”

“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 reflect certain board members 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.”

“Prior to its statutory merger on january 31, 2021, the organization was 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. Frank ford is a voting member of this organization's board of trustees and the president of sacred heart hospital of allentown. Mr. Ford receives 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. Mr. Ford'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. Form 990 for this information. Jeffrey a. Jahre, m.d. Is a voting member of this organization's board of trustees and receives 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. Jahre'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. Form 990 for this information.”

“John l. Nespoli is a former officer of this organization. Mr. Nespoli is the president of blue mountain hospital, inc. And receives a federal form w-2 from st. Luke's hospital of bethlehem pennsylvania; both related internal revenue code section 501(c)(3) tax-exempt organizations. Accordingly, his respective reportable compensation, retirement/other deferred compensation and non-taxable benefits are reported within core form, part vii and schedule j of the blue mountain hospital, inc. (ein: 24-0795436) federal form 990. Please refer to the blue mountain hospital, inc. Form 990 for this information. Daniel c. Confalone is a former officer of this organization. Mr. Confalone is a trustee of st. Luke's warren hospital and receives a federal form w-2 from st. Luke's hospital of bethlehem pennsylvania; both related internal revenue code section 501(c)(3) tax-exempt organizations. Accordingly, his respective 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 warren hospital, inc. (ein: 22-1494454) federal form 990. Please refer to the st. Luke's warren hospital, inc. Form 990 for this information. Stephen a. Lanshe, esq., former officer of the organization, is still employed within the st. Luke's university health network as associate general counsel.”

“Thomas p. Lichtenwalner is included on this form 990 because during fy21 he was the top financial official of st. Luke's university health network. Mr. Lichtenwalner was not employed by this organization; rather he received a form w-2 from st. Luke's hospital of bethlehem pennsylvania; a related internal revenue code section 501(c)(3) tax-exempt hospital organization. His common law employer/employee relationship was with st. Luke's health network, inc. (ein: 23-2384282). Accordingly, st. Luke's health network, inc. Filed a 2020 federal form 4720 which included a remittance of excise tax related to mr. Lichtenwalner in excess of $1m.”

“Prior to its statutory merger on january 31, 2021, the organization was an affiliate within st. Luke's university health network ("network"); a tax-exempt integrated healthcare delivery network. The network includes both for-profit and not for-profit organizations. Certain board of director 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 directors 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 board members who receive compensation for services rendered in a non-board capacity, paid officers, reflect total hours worked per week on behalf of the network; not solely this organization.”

“St. Luke's sacred heart campus (slsh) is a 211-bed, general medical, surgical and teaching hospital recognized by the internal revenue services (irs) as an internal revenue code section 501(c)(3) tax-exempt organization in center city allentown, pennsylvania. St. Luke's sacred heart campus is the lehigh valley's only catholic hospital which features advanced inpatient and outpatient services along with specialty services in the hospital, medical office building and at the sigal center for family medicine. Patients benefit from emergency room services, surgical services, behavioral health services, radiology & lab services and more. Pursuant to its charitable purposes, slsh provides medically necessary health care services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin or ability to pay. Moreover, slsh operates consistently with the following criteria outlined in irs revenue ruling 69-545: 1) slsh provides medically necessary health care services to all individuals regardless of ability to pay, including charity care, self-pay, medicare and medicaid patients; 2) slsh operates an active emergency department for all persons, which is open 24 hours a day, seven days a week, 365 days per year; 3) slsh maintains an open medical staff, with privileges available to all qualified physicians; 4) control of slsh rests with its board of directors and the board of directors of st. Luke's health network, inc., d.b.a. St. Luke's university health network. Both 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 slsh, as shown through the factors outlined above and other information contained herein, clearly demonstrate that the use and control of slsh 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 sacred heart 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. 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. Background ========== before joining st. Luke's university health network, sacred heart hospital was a catholic medical center located in center city allentown, pennsylvania. It was founded in 1912 during a diphtheria epidemic by monsignor masson and the missionary sisters of the most sacred heart. St. Luke's sacred heart campus, as a faith-based acute care medical center, offered a wide range of advanced medical services including vascular surgery, cardiology, endocrinology, physical rehabilitation and behavioral health services. Its physicians represented nearly every medical and surgical specialty ranging from women's health services to senior services to rehabilitation and behavioral health services. A network of physician practices throughout lehigh and northampton counties provided complete primary, pediatric and geriatric medical care to the region's res”

“Health care services ==================== behavioral health: slsh's behavioral health units provide inpatient hospitalization programs for adults (aged 18-54) and older adults (55 and older). Patients typically remain in an inpatient hospitalization program for five-10 days based upon the multidisciplinary plan of care and the behavioral health services team can help arrange for appropriate outpatient care and treatment once patients are discharged. Patients receive care from a team that includes medical doctors, psychiatrists, psychiatric nurses, physician extenders, neurologists, mental health technicians, licensed clinical social workers, case managers, occupational therapists and more. Sacred heart's extended acute care provides mental health services with the primary goal of empowering individuals to manage their illnesses, find their own goals for recovery and make informed decisions about their treatment by teaching them necessary knowledge and skills. It focuses on conveying respect, dignity, individuality, clear communication, support, encouragement and a positive attitude, all within a therapeutic environment. At sacred heart, the goal is to assist individuals in recovery, enabling them to live a meaningful life in a community of their choice, while striving to achieve their full potential. Emergency services: the slhs emergency department designed for patients with acute illnesses or injuries. The physicians, nurses and staff in the emergency department are specially trained to care for emergency conditions. The department is open 24 hours a day, seven days a week and accepts all patients. Case management: sacred heart's team works with patients, providers and insurers to coordinate all services deemed necessary to provide the patient with a plan of medically necessary and appropriate health care. An important case management function is correspondence with insurance companies to help ensure coverage for the hospital and post-hospitalization needs of each patient. Another important function is to assist in coordinating more clinically complex discharge needs such as follow-up outpatient testing, wound care or home medication infusion. The case manager will meet with the patient, along with the patient's family and caregivers, to develop a personalized plan of care to best help them adjust to after hospital care. Social services: the department works in conjunction with case management to assess and coordinate comprehensive discharge planning to meet the clinical and psychosocial needs of each patient. The staff coordinates after hospital resources for patients based on what their needs will be when they are discharged. The services a patient will need are unique to his or her specific situation, therefore meetings are conducted with the patient, the family and/or significant others to obtain information regarding home environment, family and community supports, as well as past and current medical needs. Together they collaborate on a discharge plan to assist the patient. Stroke care: the stroke team is made up of members of the nursing, social services, speech pathology, physical therapy, dietary, occupational therapy and pastoral care departments to design a plan of care to assist with recovery. Rehabilitation services - inpatient therapy: when admitted to the hospital, a patient may need physical, occupational or speech therapy to return to the previous level of function. Inpatient rehabilitation services can provide treatment to patients during their stays. A team of experienced rehabilitation professionals customize an individual program that fits the patient's unique needs. Acute rehabilitation center: slsh's 14-bed acute rehab center, we offer physical, occupational, and speech therapies. Our interdisciplinary team approach ensures that we provide the highest quality of evidence-based care to meet resident and family needs. Transitional care facility ("tcf"): st. Luke's sacred heart campus' transitional care f”

“Effective with the close of business on january 31, 2021, this organization was statutorily merged into st. Luke's hospital of bethlehem, pennsylvania; a related internal revenue code section 501(c)(3) tax-exempt organization.”

“Other changes in net assets or fund balances include: - final accounting reconciliation regarding negative net assets - $42,858,729; - restructuring costs - ($188,166); and - other changes in net assets with donor restrictions - ($179,563).”

“Prior to its statutory merger on january 31, 2021, the organization was 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, 2021 and june 30, 2020; 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.”

“Prior to its statutory merger on january 31, 2021, the organization was 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 finance committee engaged an independent accounting firm to prepare and issue a network wide consolidated audit under the single audit act and omb circular a-133.”