Allina Health System

Filing Period

Jan 1, 2012 to Dec 31, 2012

Signed

Nov 6, 2013

Return Version

2012v2.1

Gross Receipts

$3,578,879,724

Mission

Major Activities

Activity 2

Cost of participating in government programsallina health is committed to serving all persons in need, regardless of race, creed, sex, nationality, religion, disability, age, or ability to pay. To promote access to care for all individuals, allina health participates in the following public health care programs: medicare, medicaid, minnesotacare, and general assistance. Payments from these programs frequently do not cover the costs allina health incurs to serve program beneficiaries. In 2012, allina health provided $270,131,147 in health care services in excess of the reimbursement received by public programs and surcharges, taxes and fees related to these programs. The following is a breakdown on costs related to these programs, services and additional taxes and fees.costs in excess of medicare and medicaid paymentsallina health provides services to public program enrollees. Such public programs have reimbursed at amounts less than cost. In 2012, allina health expended $152,363,517 beyond reimbursements to provide care for medicare patients and an additional $51,987,036 beyond reimbursements for medicaid patients. Medicaid surchargeallina health is a participant in the medicaid surcharge program. The current program includes a 1.56% surcharge on a hospital's net patient service revenue (excluding medicare revenue). Reported amounts are net of any disproportionate share adjustments. In 2012, allina health paid $21,639,410 for the medicaid surcharge. Minnesotacare taxallina health also participates in the funding of medical care for the uninsured through a minnesotacare tax of 2% on certain net revenue. Patients who are unable to get insurance through their employer are eligible to participate in minnesotacare. Allina health paid $39,036,736 for the minnesotacare tax in 2012. Taxes and fees allina health pays property taxes to local and state government used in funding civil and education services to the community. In total, allina health paid $5,104,448 in taxes and fees in 2012.

Activity 3

Uncompensated care:charity careallina health provides medical care without charge or at reduced cost to residents of the communities that it serves through the provision of charity care. Our community care program was established to assist patients who do not qualify for medical assistance such as medicaid and whose annual incomes are at or below 275% of the federal poverty level. Notably, our definition of charity care does not include bad debt (charges written off for providing services to persons able, but unwilling, to pay for these services). Through this program, allina health strives to ensure that all members of the community receive quality medical care; regardless of ability to pay. In 2012, allina health provided $29,348,221 in charity care.uninsured discount programfor uninsured patients who do not qualify for medicaid or meet the financial threshold for charity care, but require some financial assistance, allina health provides a sliding scale discount. All uninsured patients are eligible for a minimum of a 20 percent discount on billed charges and may qualify for discounts up to 57 percent based on eligibility criteria. In 2012, allina health provided $39,169,134 in such discounts to low-income, uninsured individuals. Bad debt bad debt will be reported as a reduction to revenue. Allina health provides medical care to all in need. There are times when patient account balances go unpaid, known as bad debt. These bad debt amounts in 2012 totaled $(72,700,496).footnotes to audited financial statement that describe bad debt expense are as follows:2q. Adoption of new accounting standardson january 1, 2012, the system adopted guidance under accounting standards update 2011-07, presentation and disclosure of patient service revenue, provision for bad debts, and the allowance for doubtful accounts for certain health care entities, which amended asc topic 954, health care entities. The guidance provides greater transparency regarding a healthcare entity's net patient service revenue and the related allowance for doubtful accounts. The amendments require health care entities to change the presentation of the provision for bad debts related to patient service revenue by reclassifying the provision from operating expense to a deduction from patient service revenue, retrospectively, and require enhanced disclosures about net patient revenue and the policies for recognizing revenue and assessing bad debts. The adoption of the authoritative guidance did not have a material effect on the system's consolidated financial statements.

Filer

EIN

36-3261413