Deaconess Hospital Inc.

“Class of members or stockholders: deaconess health system, inc. Is the sole corporate member of deaconess hospital, inc.”

“Election of governing body: the board of directors may elect one or more non-medical staff members of the governing body through an approved election and approval process. The election and approval process for non-medical staff members begins with a recommendation by the governance committee for membership to the board of directors. That recommendation is then reviewed and approved by the board of directors. Depending on the decision reached by the board of directors, membership may or may not be granted to that individual. Medical staff executive council leadership are appointed to board of director membership through their position as elected medical staff leaders. Through the election process of the medical staff executive council, their appointment is confirmed and approved.”

“Form 990 review process: the process that deaconess hospital utilizes to present the form 990 to its governing body prior to filing is to present the form 990 to the cfo and ceo of the organization for review. After this review is performed and all questions are answered, the form 990 is presented to the board of directors of deaconess health system at the board meeting prior to the filing date of the form 990. Any additional questions are answered and the final filing is then completed.”

“Compliance with conflict of interest policy: conflict of interest review and compliance activities are conducted throughout the year under the direction of deaconess hospital's corporate compliance officer. Upon appointment and, annually, thereafter, officers, directors, trustees, and key employees, also known as interested persons, are required to complete "the conflicts of interest questionnaire and/or "the disclosure questionnaire". These documents serve to ensure interested persons or committee members with board delegated powers have an appropriate and timely manner in which to disclose any potential conflicts. Conflicts are considered with respect to outside interest, investments, outside activities, and business interests among the interested persons as well as their family members. On a periodic basis, reviews occur to ensure deaconess hospital operates in a manner consistent with its charitable purpose. Subjects that are reviewed on a periodic basis include compensation, physician relationships, partnership and joint venture arrangements.”

“Compensation for top officials and other officers: deaconess hospital utilizes a compensation committee to approve executive, director and physician compensation as well as executive and physician benefits programs. The compensation committee is appointed by the board of directors and must meet the independence requirements of the sec. The committee has the power and authority to: 1. Annually review and approve and recommend to the board of directors for its final approval for the ceo and each other executive officer of the system all elements of executive compensation. 2. Monitor broadly the structure, philosophy or competitiveness of the system's general hiring or compensation practices. 3. Oversee the establishment and administration of the company's broad-based benefit plans and programs 4. Review or approve significant amendments or changes to the plans and programs. 5. Retain and terminate any compensation consultant to be used to assist in the evaluation of director, ceo or executive office compensation 6. Sole authority to approve the consultant's fees and other retention terms. 7. Obtain advice and assistance from internal or external legal, accounting or other advisors. 8. Approve all physician and physician related contracts. 9. Make regular reports to the board.”

“Governing documents disclosure explanation: deaconess hospital's articles of incorporation are available on the secretary of state's website. Deaconess hospital is part of a consolidated financial statement which is available with the public disclosure copy of the irs form 990. Also, as required by law, the hospital submits its consolidated financial statements to the indiana department of health which are published on its website. Governing documents, aside from the articles of incorporation, and the conflict of interest policy are not available for public inspection.”

“Deaconess hospital provides quality healthcare services with a compassionate and caring spirit to persons, families and communities of the tri-state. At deaconess hospital, our values are based on our commitment to quality. We define quality as the continuous improvement of services to meet the needs and exceed the expectations of the customers we serve. Our values are quality in everything we do, respect for all people, efficiency and effectiveness in the use of resources, innovation toward continuous systems improvement, partnership with those we serve and with suppliers, education for continuous growth and knowledge and pride in workmanship. To accomplish its mission, deaconess hospital is committed to improving the quality of life for the people of the tri-state by demonstrating excellence in healthcare services, providing access to healthcare, providing charity care to those in need,promoting healthy lifestyles, offering spiritual and psychological support, supporting health related education, and advancing health knowledge through research.”

“Program services accomplishment 1: patient service revenue. Deaconess hospital is a major referral center for a 26 county tri-state area in southwestern indiana, western kentucky and southeastern illinois. The hospital and its facilities are located on four campuses which include the main 28-acre campus on the near north side of evansville in vanderburgh county; the 63-acre gateway campus located in warrick county on the eastern border of vanderburgh county; and two other eastside evansville locations for psychiatric behavioral services and rehabilitation services. The hospital operates a main campus with a total of 267 beds consisting of 38 intensive care beds, 16 cardiac intensive care beds, 45 cardiac beds, 23 oncology/ pulmonology beds, 44 orthopaedic/ neurological beds, 44 medical/ surgical beds, 39 medical renal beds, and 18 beds dedicated to patients in observation. In addition, the hospital provides a full-array of comprehensive outpatient and ambulatory services on its main campus and other specific services at multiple sites within its primary and secondary service areas. The hospital operates the 278 bed deaconess gateway hospital which was opened in january 2006, on the gateway campus consisting of 13 adult intensive care beds, 17 pediatric and pediatric intensive care beds, 16 neurosurgical beds, 48 orthopaedic beds, 48 neuro intensive care beds, 32 surgical oncology beds, 48 general med/ telemetry beds, 24 cardiac beds, and 32 beds dedicated to patients in observation. The orthopedic neuroscience hospital opened on the gateway campus in may of 2018. The hospital owns and operates deaconess cross pointe, a free-standing, 60 bed inpatient psychiatric hospital located approximately 7 miles east of the main campus in evansville.”

“Program services accomplishment 2: charity care/ subsidized care. Deaconess hospital makes a distinction between charity care and bad debt. In determining an individual or family's ability to pay, deaconess hospital evaluates whether or not the responsible party has sufficient resources available for payment. If an individual is determined to not have sufficient resources to pay, they are considered eligible for charity care and will not be processed through either internal or external collections. Accounts of charity care patients who are unable to pay do not result in bad debt and are not collected upon. Deaconess hospital provides care to persons covered by governmental programs below cost. Recognizing its mission to the community, services are provided to both medicare and medicaid patients. To the extent of reimbursement is below cost, deaconess hospital absorbs these costs in meeting its mission to the community. In support of its mission, deaconess hospital provided $18.2 million of charity care and $35.1 million of subsidized services to the medicaid program, and $63.1 million of subsidized services to the medicare program.”

“Program services accomplishment 3: graduate medical education, medical education & community benefits. Deaconess hospital plays an active role in medical education, operating a three year family medicine residency program and a post-graduate pharmacy residency program. Deaconess hospital also provides continuing medical education programs for attending physicians, other health professionals, other allied health programs, community health programs and a chaplain residency program. In addition to educational services, deaconess hospital provided $9.1 million in community benefit activities (all on a cost basis), serving a minimum of 991,538 people within the tri-state area.”

“All other accomplishments. Other program service revenue consists of deaconess hospital's income from the investment in joint ventures. Other program service expenses consisted of community benefit grants/assistance.”

“Professional fees: program service expenses 122,013,322. Management and general expenses 2,982,148. Fundraising expenses 16,004. Total expenses 125,011,474. Professional fees- physicians: program service expenses 19,314,739. Management and general expenses 89,718. Fundraising expenses 0. Total expenses 19,404,457.”

“Change in pension liability -46,775,864. Foundation monies granted from restriction -1,196,633. Change in general fund equity -84,160,134. Change in unrealized gain/loss on investments/swap 3,831,397.”

“The board of directors assumes responsibility for oversight of the audit of the financial statements and selection of the independent accountant; and no processes have changed from prior year.”