Sacred Heart Foundation

“Prior to its statutory merger on september 12, 2018, this 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.”

“Prior to its statutory merger on september 12, 2018, this organization was an affiliate within st. Lukes university health network ("network"); a tax-exempt integrated healthcare delivery network. St. Lukes 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. Lukes health network, inc.; a related internal revenue code section 501(c)(3) tax-exempt organization. Thomas p. Lichtenwalner is the senior vice president of finance/chief financial officer of the network. Mr. Lichtenwalner receives a federal form w-2 from st. Lukes hospital of bethlehem pennsylvania, a related internal revenue code section 501(c)(3) tax-exempt organization. Mr. Lichtenwalners reportable compensation, retirement/other deferred compensation and non-taxable benefits are reported within core form, part vii and schedule j of the st. Lukes health network, inc. (ein: 23-2384282) federal form 990. Please refer to the st. Lukes health network, inc. Form 990 for this information.”

“Effective with the close of business on september 12, 2018, for tax purposes, this organization was statutorily merged into sacred heart hospital of allentown; a related internal revenue code section 501(c)(3) tax-exempt hospital.”

“Prior to its statutory merger on september 12, 2018, sacred heart hospital ("shh") was the sole member of this organization. St. Luke's health network, inc. ("slhn") is the sole member of shh. Slhn had the ultimate authority and 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 september 12, 2018, this 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 has 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, including its senior vice president of finance, vice president of finance, director of accounting 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 september 12, 2018, this 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 september 12, 2018, this 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.”

“Prior to its statutory merger on september 12, 2018, this 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. John l. Nespoli and h. Donald wills, m.d. Are voting members of this organizations board of trustees. Neither of these individuals are compensated for serving as voting members of the organizations governing body. Mr. Nespoli served as the president/ceo of sacred heart hospital of allentown; a related internal revenue code section 501(c)(3) tax-exempt organization, for the period july 1, 2018 through december 15, 2018. Thereafter, effective december 16, 2018, mr. Nespoli became the president of blue mountain hospital, inc.; a related internal revenue code section 501(c)(3) tax-exempt hospital organization. Mr. Nespoli 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. Nespoli's 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. Dr. Wills is an employed physician of st. Lukes physician group, inc., a related internal revenue code section 501(c)(3) tax-exempt organization. Dr. Willss reportable compensation, retirement/other deferred compensation and non-taxable benefits are reported within core form, part vii and schedule j of the sacred heart hospital of allentown (ein: 23-1352208) federal form 990. Please refer to the sacred heart hospital of allentown form 990 for this information. Frank ford served as the networks chief integration officer for the period july 1, 2018 through december 15, 2018. Thereafter, effective december 16, 2018, mr. Ford became the president of sacred heart hospital of allentown; a related internal revenue code section 501(c)(3) tax-exempt organization. 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 is reported as an officer on this organization's form 990. 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 the senior vice president, medical affairs & academic affaris of the network 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 is reported as an officer on this organization's form 990. 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 health network, inc. (ein: 23-2384282) federal form 990. Please refer to the st. Luke's health network, inc. Form 990 for this information.”

“Daniel c. Confalone, former officer of the organization, is still employed within the st. Luke's university health network as the vice president of finance. Mr. Confalone 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. Confalone's reportable compensation, retirement/other deferred compensation and non-taxable benefits are reported within core form, part vii and schedule j of the scared heart hospital of allentown (ein: 23-1352208) federal form 990. Please refer to the scared heart hospital of allentown form 990 for this information.”

“Prior to its statutory merger on september 12, 2018, this 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.”

“Please refer to the organization's response to schedule n; part i.”

“In august 2016, the financial accounting standards board ("fasb") issued accounting standards update ("asu") 2016-14, "presentation of financial statements for not-for-profit entities". The new guidance requires improved presentation and disclosures to help not-for-profits provide more relevant information about their resources to donors, grantors, creditors and other users. The network adopted this new accounting standard in fiscal year 2019. The primary changes affecting the network include: presentation of two classes of net assets versus the previously required three; enhanced disclosures for board designated amounts, composition of net assets without donor restrictions, and liquidity and availability; and disclosure of expenses by both their natural and functional classification in a matrix format.”

“Other changes in net assets or fund balances include: - statutory merger and transfer of net assets of entity into sacred heart hospital of allentown; a related internal revenue code section 501(c)(3) tax-exempt organization - ($1,233,156); - net assets released from restrictions used for operations - ($17,106); - other changes in net assets with donor restricted specific purpose and capital campaign fund - ($307,687); and - other changes in net assets with donor restricted endowment fund - ($879,763).”

“Prior to its statutory merger on september 12, 2018, this 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 network and its controlled affiliates for the years ended june 30, 2019 and june 30, 2018; respectively, and issued a consolidated financial statement with consolidating schedules by entity. 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.”