Sacred Heart Foundation

“The organization is 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.”

“On september 15, 2017, st. Luke's university health network ("network") entered into a definitive agreement (the "affiliation agreement") with sacred heart healthcare system ("system"), sacred heart hospital of allentown ("shh"), sh realty corporation ("shrc"), sacred heart ancillary services, inc. ("shas"), quality patient care, llc ("qpc"), and sacred heart foundation ("shf"). On march 1, 2018, subsequent to the satisfaction of all conditions precedent, the affiliation was completed and consummated. Accordingly, pursuant to the terms of the affiliation agreement: (i) the networks parent entity, st. Luke's health network, inc. ("slhn") became the sole member of shhs and shh; (ii) shh is the sole member of each of shrc, shf and qpc; and (iii) shh is the sole stockholder of shas. Shhs, shh and shf are pennsylvania nonprofit corporations and organizations described under section 501(c)(3) of the internal revenue code, as amended (the "code"). Shrc is a pennsylvania nonprofit corporation and organization described under section 501(c)(2) of the code. Qpc is a pennsylvania for profit limited liability corporation and shas is a pennsylvania for profit corporation. Accordingly, this organizations articles of incorporation and bylaws were amended and restated to reflect shh as its sole member.”

“Sacred heart hospital ("shh") is the sole member of this organization. St. Luke's health network, inc. ("slhn") is the sole member of shh. Slhn has the ultimate authority and right to elect the members of this organization's board of directors and has certain reserved powers as defined in this organization's bylaws.”

“The organization is 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.”

“The organization is 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.”

“The organization is 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. On an annual basis the human resources department of the organization provides the board with compensation market data to review and consider with respect to all key employees and officers of the organization. The board reviews the market data, approves any salary adjustments for the executive population, considers both reasonableness and effectiveness of all remunerative programs and establishes the detailed performance expectations which are incorporated into the organization's incentive plans. All of these discussions are documented through the provision of meeting minutes.”

“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 directors.”

“The organization is 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. Frank ford and jeffrey a. Jahre, m.d. Are officers of this organization and are not compensated for serving as officers of the organization. Mr. Ford is the chief integration officer and dr. Jahre is the senior vice president, medical affairs & academic affairs of the network and both individuals receive 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. Fords and dr. Jahres 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.”

“Daniel c. Confalone, trustee and chief financial officer of the organization for the period of 7/1/2017 to 11/1/2017, is still employed within the st. Lukes university health network as the network vice president of finance of st. Lukes health network, inc.; a related internal revenue code section 501(c)(3) tax-exempt organization. Jacqueline jones served as a voting member of the organization's board of trustees for the period of 7/1/2017 to 3/1/2018, ms. Jones is still employed as a vice president of the organization.”

“The organization is 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.”

“Other changes in net assets or fund balances include: - adjustment in net assets due to affiliation with st. Luke's university health network - ($347,132); - temporarily restricted net assets released from restriction - ($43,414); and - change in fair value of beneficial interest in perpetual trusts - ($105,491).”

“The organization is 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, 2018 and june 30, 2017; 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.”