Aspen Medical Group

Filing Period

Jan 1, 2012 to Dec 31, 2012

Signed

Nov 6, 2013

Return Version

2012v2.1

Gross Receipts

$85,747,273

Mission

Major Activities

Activity 2

Cost of participating in government programs:the amg 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, amg participates in the following public health care programs: medicare, medicaid, minnesotacare, and general assistance. Payments from these programs frequently do not cover the costs amg incurs to serve program beneficiaries. In 2012, amg provided $6,874,841 in health care services in excess of the reimbursement received by public programs, and taxes and fees related to these programs. The following is a breakdown of costs related to these programs, services and additional taxes and fees.costs in excess of medicare and medicaid paymentsamg provides services to public program enrollees. Such public programs have reimbursed at amounts less than amg's cost. In 2012, amg expended $3,913,126 beyond reimbursements to provide care for medicare patients and an additional $1,163,524 beyond reimbursements for medicaid patients.minnesotacare taxamg 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. Amg paid $1,352,849 for the minnesotacare tax in 2012.taxes and feesamg pays property taxes to local and state governments used in funding civil and education services to the community. In total, amg paid $445,342 in taxes and fees in 2012.

Activity 3

Uncompensated care:charity careamg defines charity care as care which is provided to persons willing, but unable, to pay. This includes patients whose charges are reduced because of inability to pay, patients who are unable to pay the balance left by any payor (private insurance or public programs), and patients for whom unusual circumstances, or special financial hardship warrant special consideration. The amg's 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). Providing charity care ensures that all members of the community receive quality primary medical care when they need it regardless of their ability to pay. In 2012 amg provided $844,023 in charity care. Bad debtamg 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 $2,128,452.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

41-1452624