Lake Regional Health System

“Form 990 review process: the form 990 is prepared by an independent accounting firm based on the audited financial statements and information provided by the accounting department of the organization. The 990 was thoroughly reviewed by the director of accounting, cfo and ceo. After any changes were made, the members of the board of directors were provided a copy. At the december 2016 board meeting, the 990 was presented to the board by the independent accountants who prepared the 990, and the board had the opportunity to ask any questions before the 990 was filed.”

“Conflict of interest policy: each year, all members of the board of directors, senior management, and the department heads are required to review the conflict of interest policy and properly disclose any actual, potential, or perceived conflict of interest. A copy of the conflict of interest policy is provided to each director at the time of appointment, to each new principal officer and employee at the time of employment, and annually to every interested person. Each interested person is required to submit a statement to the ceo annually verifying the understanding with the policy and stating that all conflicts have been disclosed, or that no conflicts exist. The ceo submits his annual statement to the chairman of the board. In the event an interested person develops a potential conflict of interest, the person must immediately upon learning about the potential conflict disclose the nature of the conflict to the board of directors. The person then leaves the board or committee meeting while the issue is discussed among remaining board members to determine whether a conflict exists by majority vote. If a conflict does exist, a separate person is assigned to investigate alternatives to the conflict and determine if a more advantageous transaction or arrangement is possible. If this is not possible, the board then decides by majority vote if the transaction or arrangement is in the organization's best interest, is fair and reasonable, and whether it should or should not be entered. If the organization has reasonable cause to believe that an interested person has failed to disclose actual or possible conflicts of interest, the person will be informed of the basis for such belief and will be given an opportunity to explain the alleged failure to disclose. If, after hearing the person's response and conducting further investigation, the organization determines that the person has in fact failed to disclose an actual or possible conflict of interest, appropriate corrective action will be taken. Additionally, the organization has implemented a tax compliance questionnaire that asks detailed questions, and provides respondents with the appropriate definitions and instructions, to enable the organization to gather information required to answer questions on the 990 relating to the following areas: 1) the number of independent voting board members, 2) relationships between interested persons, 3) loans to or from interested persons, 4) grants or assistance benefiting interested persons, and 5) business transactions involving interested persons.”

“The organization used integrated healthcare strategies, an independent organization, to help evaluate and set the compensation for the organization's ceo. The compensation deliberations were documented in the minutes of both the compensation committee and the board. The report is dated november 2014.”

“The organization used integrated healthcare strategies, an independent organization, to help evaluate and set the compensation for other officers and key employees. The compensation deliberations were documented in the minutes of both the compensation committee and the board. The report is dated november 2014.”

“Governing document availability: certain aspects of the financial statements are available in the organization's annual report which can be found on the organization's website. The organization's governing documents and conflict of interest policy are not available to the general public.”

“Board member compensation: board member robert mason, do, is paid as a prn employee of lake regional medical management and receives no other benefits. Grant barnum, do, is paid as a physician of lake regional medical management. Patrick o'neil is paid as chief of staff of lake regional health system. Board members do not receive any compensation for their services provided as a member of the board directors.”

“Organization's mission: our mission: provide exceptional healthcare. Our vision: to be the first choice for health care. Our core competencies: agility, community focus, service excellence. Our values: integrity, patient centered, clinical excellence, commitment to community. The system was organized in 1973 for the purpose of establishing a new hospital for medical and surgical care and for the treatment of persons residing or visiting in the lake of the ozarks area of central missouri. In the more than 30 years since then, the system has evolved to provide more comprehensive health care, including adding cardiac-care, outpatient services, cancer and orthopedic programs and continually expanding services and facilities over the years. It is now designated as a regional referral center by medicare and has nearly 1,400 employees. Its board has adopted governance best practices and a wide-ranging corporate compliance program. Based on periodic community assessments, the board has also committed to enhanced uncompensated care policies and numerous community programs (e.g. Health screenings, wellness enhanced and related care programs). The system is organized as a community-based nonprofit public benefit corporation under the laws of the state of missouri. The system owns and operates a 116-licensed bed acute care hospital (the "hospital") located on highway 54 in osage beach, missouri. The hospital is licensed by the missouri department of health and accredited by the joint commission. The hospital is designated as a sole community hospital, meaning that the hospital is the primary health care provider for a majority of medicare patients within a 35-mile radius of the hospital. The corporation has one active, wholly-owned for-profit subsidiary, lake regional medical management, inc. ("lrmm"), which operates seven primary care medical clinics, three retail pharmacies and fifteen specialty clinics. Operations of lrmm are governed by a separate board of directors. The system is currently governed by a fifteen-member board of directors (the "board"). The board has general responsibility for the business and affairs of the system, and may do and perform all acts necessary to carry out its purposes. Under the terms of the bylaws, the members of the board serve three-year staggered terms, and new members are elected by the current board members. The officers of the board are elected by the board for two-year terms. Board members serve in a voluntary capacity and receive no remuneration for service rendered in such capacity.”

“Program service accomplishments: the hospital provides charity care in support of its mission. The hospital voluntarily provides free care to patients who lack financial resources and are deemed to be medically indigent. Because the hospital does not pursue collection of amounts determined to qualify as charity care, they are not reported in net patient service revenue. In addition, the hospital provides services to other medically indigent patients under certain government reimbursed public aid programs. Such programs pay providers amounts which are less than established charges for the services provided to the recipients and many times the payments are less than the cost of rendering the services provided. Uncompensated charges relating to these services include charity care, bad debt, unpaid medicare, free medical services, health professionals education, financial contributions, and taxes. In addition to uncompensated charges, the hospital also commits significant time and resources to endeavors and critical services which meet otherwise unfilled community needs. Many of these activities are sponsored with the knowledge that they will not be self-supporting or financially viable. Such programs include health screening and assessments, prenatal education and care, community educational services and various support groups.”

“Other program services: other services include electronic health records incentives, management fees, cafeteria income, income from the auxiliary, and other program service activities.”

“Other fees for services: the organization's total other fees for services on the statement of functional expenses is comprised of the following: $ 8,423,005 outside services 8,984,889 clinical services 497,108 collection agencies 398,789 agency staffing ------------ $18,303,791 total”