Highmark Health

“Form 990, Part III, Line 1 MISSION HIGHMARK HEALTH IS THE PARENT OF AN INTERDEPENDENT SYSTEM DESIGNED TO DELIVER HIGH QUALITY, ACCESSIBLE, UNDERSTANDABLE AND AFFORDABLE EXPERIENCES, OUTCOMES AND SOLUTIONS FOR OUR CUSTOMERS. VISION HIGHMARK HEALTH'S DEDICATED AND RESPECTED EMPLOYEES WILL BE LEADERS IN THE HEALTH CARE INDUSTRY, WORKING TO IMPROVE THE TOTAL HEALTH CARE EXPERIENCE OF OUR CUSTOMERS. VALUES PEOPLE MATTER - EVERY PERSON CONTRIBUTES TO OUR SUCCESS. WE STRIVE FOR AN INCLUSIVE CULTURE, REGARDING PEOPLE AS PROFESSIONALS AND RESPECTING INDIVIDUAL DIFFERENCES WHILE FOCUSING ON THE COLLECTIVE WHOLE. STEWARDSHIP - WORKING TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE AND WISELY MANAGING THE ASSETS WHICH HAVE BEEN ENTRUSTED TO OUR CARE. TRUST - EARNING TRUST BY DELIVERING ON OUR COMMITMENTS AND LEADING BY EXAMPLE. INTEGRITY - COMMITTING TO THE HIGHEST STANDARDS ENCOMPASSING EVERY ASPECT OF OUR BEHAVIOR INCLUDING HIGH MORAL CHARACTER, RESPECT, HONESTY AND PERSONAL RESPONSIBILITY. CUSTOMER-FOCUSED COLLABORATION - BECAUSE NO ONE PERSON HAS ALL THE ANSWERS, WE ACTIVELY SEEK TO COLLABORATE WITH EACH OTHER TO ACHIEVE THE RIGHT OUTCOMES FOR OUR CUSTOMERS. COURAGE - EMPOWERING EACH OTHER TO ACT IN A PRINCIPLED MANNER AND TO TAKE APPROPRIATE RISKS TO DO WHAT IS RIGHT TO FULFILL OUR MISSION. INNOVATION - COMMITTING TO CONTINUOUS LEARNING AND EXPLORING NEW, BETTER, AND CREATIVE WAYS TO ACHIEVE OUR VISION. EXCELLENCE - BEING ACCOUNTABLE FOR CONSISTENTLY EXCEEDING THE EXPECTATIONS OF THOSE WE SERVE.”

“Form 990, Part III, Line 4a OVERVIEW OF HIGHMARK HEALTH HIGHMARK HEALTH (HH) WAS FORMED TO BE THE PARENT ORGANIZATION OF A HEALTHCARE SYSTEM LOCATED IN WESTERN PENNSYLVANIA NAMED ALLEGHENY HEALTH NETWORK (AHN). AHN WAS FORMED PRIOR TO THE AFFILIATION OF WEST PENN ALEGHENY HEALTH SYSTEM, INC. (WPAHS) WITH HIGHMARK INC. (HIGHMARK). HH IS THE SOLE MEMBER OF AHN AND THE SOLE MEMBER OF HIGHMARK. AHN IS THE SOLE MEMBER OF WPAHS, JEFFERSON REGIONAL MEDICAL CENTER (JRMC), SAINT VINCENT HEALTH CENTER (SVHC) AND SAINT VINCENT HEALTH SYSTEM (SVHS). HH SERVES AS THE ULTIMATE PARENT OF THE AHN AFFILIATES THROUGH ITS POSITION AS SOLE MEMBER OF AHN. THE MISSION OF HH IS TO PROVIDE ACCESS TO AFFORDABLE HIGH QUALITY AND ACCESSIBLE HEALTH CARE. THE ACTIVITIES OF HH INCLUDE STRATEGIC, OPERATIONAL AND ADMINISTRATIVE LEADERSHIP FOR AHN. FROM A STRATEGIC STANDPOINT, HH IS FOCUSED ON CHANGING THE CURRENT DELIVERY OF THE CARE MODEL IN WESTERN PENNSYLVANIA; HH ENCOURAGES HEALTH CARE PROVIDERS IN AHN, WHETHER HOSPITALS OR PHYSICIANS, TO USE THE MOST COST EFFECTIVE VENUE FOR CARE, ADHERE TO EVIDENCE-BASED STANDARDS OF CARE, AND DELIVER SUPERIOR OUTCOMES BY REDUCING SUCH THINGS AS UNNECESSARY READMISSIONS AND POST-SURGICAL INFECTIONS. IN SUM, AS THE PARENT ORGANIZATION OF AHN, WE WORK TO ENSURE THAT AHN OPERATES IN THE MOST EFFECTIVE AND EFFICIENT MANNER AND PROVIDES THE HIGHEST QUALITY HEALTH CARE FOR THE COMMUNITIES THAT IT SERVES. OVERVIEW OF THE ALLEGHENY HEALTH NETWORK ALLEGHENY HEALTH NETWORK IS A TEAM OF CARE GIVERS COMMITTED TO IMPROVING HEALTH AND PROMOTING WELLNESS IN ITS COMMUNITIES, ONE PERSON AT A TIME, IT PLEDGES TO CONSISTENTLY DELIVER SAFE, COMPASSIONATE QUALITY HEALTHCARE BY TREATING THE WHOLE PERSON - BODY, MIND AND SPIRIT. AHN'S MISSION IS TO PROVIDE ACCESS TO AFFORDABLE HIGH QUALITY AND ACCESSIBLE HEALTH CARE, IT PROVIDES STRATEGIC, OPERATIONAL AND ADMINISTRATIVE LEADERSHIP FOR THOSE ORGANIZATIONS IT SUPPORTS. FROM AN ADMINISTRATIVE AND OPERATIONAL PERSPECTIVE, AHN IS PROVIDING EXECUTIVE LEADERSHIP AND OVERSIGHT TO WPAHS, SVHC, SVHS AND JRMC AND ITS EXEMPT AFFILIATES TO ENSURE THAT THEY CONTINUOUSLY OPERATE IN ACCORDANCE WITH THE MISSION OF PROVIDING HIGH QUALITY AFFORDABLE HEALTH CARE. IN TOTAL, THE AHN HAD 1,018 PHYSICIAN FULL TIME EMPLOYEES IN 2015. 2015 was a year of significant challenges in the health care industry and served as a launching pad for Highmark Health, as it brought transition that required the company to come together in unprecedented fashion to navigate difficult market dynamics. This resulted in a strategic plan that uniquely positions the organization to invent a new health care model that can deliver differentiated value to our customers across their full spectrum of needs. We began to see the positive results of the investments we've made in Allegheny Health Network to deliver the highest clinical quality and patient service, while ensuring that it is positioned to meet the future needs of our patients and the community. Of particular note is Allegheny Health Network's recognition by Comparison of its top-rated Pittsburgh-area cardiac care, women's care, spinal surgery and trauma care; its national leadership in organ transplant programs; and as the leading heart transplant program in Pennsylvania based on measures of medical excellence. In 2015, the Allegheny Health Network provided $121,536,790 in uncompensated care and $59,437,491 in community benefits to the communities we serve. WEST PENN ALLEGHENY HEALTH SYSTEM WPAHS WAS ORGANIZED IN 2000 AND IS COMPRISED OF WEST PENN ALLEGHENY HEALTH SYSTEM, INC. (WPAHS, INC.), ALLE-KISKI MEDICAL CENTER (AKMC), CANONSBURG GENERAL HOSPITAL (CGH), ALLEGHENY MEDICAL PRACTICE NETWORK (AMPN), ALLEGHENY CLINIC (AC), ALLEGHENY-SINGER RESEARCH INSTITUTE (ASRI), ALLEGHENY CLINIC MEDICAL ONCOLOGY (ACMO), CANONSBURG GENERAL HOSPITAL AMBULANCE SERVICE (CGH AMBULANCE), ALLE-KISKI MEDICAL CENTER TRUST (AKMC TRUST), FORBES HEALTH FOUNDATION (FHF), SUBURBAN HEALTH FOUNDATION (SHF) AND”

“Form 990, Part VI, Line 2 The following Board members have a business relationship through their connection of serving together on the Board of related taxable non-profit organizations: David Malone, David Blandino, David Matter, Steven Hoffman, Thomas Donahue, Victor Roque, Robert Baum, Joseph Guyaux, Gregory Jordan, Susan Shoval.”

“Form 990, Part VI, Line 11b The Highmark Health IRS Form 990 was prepared by its external tax advisors, Grant Thornton, LLP and reviewed by the Highmark Health Tax Department, Senior Management of the organization and the Audit and Compliance Committee. Before filing the tax return with the Internal Revenue Service, a final copy was provided to all members of the Board of Directors.”

“Form 990, Part VI, Line 12c Highmark Health (HH) has a corporate compliance department that monitors and oversees compliance with the conflict of interest policy. The following describes the manner in which the corporate compliance department monitors and oversees compliance with the conflict of interest policy for HH: Conflict of interest disclosure forms are completed on an annual basis by all board members, officers, any person who has authority to act on behalf of the BOD, key employees , managers and above, persons with purchasing authority including procurement department employees and committees which may influence purchasing decisions, and any other employees as designated by the compliance department. Upon completion of the above disclosure statement by all applicable individuals, the integrity and compliance department reviews all disclosures. Those that require additional information or clarification are contacted by the integrity and compliance department requesting such. Once received, all information is evaluated in consultation with the legal department and senior management as applicable to determine whether a real or potential conflict of interest exists. Those conflicts that require a mitigation plan are developed and approved in coordination with the respective responsible senior management. The senior managers are responsible for discussing the mitigation plan with the individual as needed and monitoring compliance with the mitigation plan. A final report of all board and executive level management disclosures is submitted for review to the audit and compliance subcommittee of the board, as well as by the board of directors.”

“Form 990, Part VI, Line 15a and 15B The Highmark Health (HH) process for determining compensation for executive positions (including officers, key employees and other management positions) is covered by the HH executive compensation policy. This policy was approved by the HH board of directors. It is the policy of HH and its board of directors to compensate its executives in accordance with the market and in relation to the experience, service and accomplishments of the individual both prior to and during their service with HH. The personnel & compensation committee makes recommendations to the HH board of directors who ultimately approve the compensation for the ceo. For all other executive officers, the personnel & compensation committee reviews and approves all compensation recommendations. Compensation shall include all compensation components, including without limitation, base compensation, incentive compensation, deferred compensation, and fringe and other benefits. The personnel & compensation committee shall also approve all base compensation adjustments and all incentive compensation awards, as well as material changes to deferred compensation, fringe, or other benefits. The personnel & compensation committee uses comparability data provided by an independent compensation consultant. The external consultant provides a letter of reasonability for all offers made to new executives that are under the purview of the Personnel & Compensation Committee. Each board of director member voting on a senior executive's compensation arrangement ensures that he or she has no conflict of interest, including that he or she (a) does not economically benefit from the proposed employment; (b) does not receive compensation subject to the approval of the proposed employee; and (c) has no material financial interest affected by the transaction. Highmark Health follows the requirement in the regulations to comply with the rebuttable presumption of the reasonableness of compensation.”

“Form 990, Part VI, Line 19 Highmark Health (HH) does not make its governing documents available to the public. The audited financial statements of HH are included in a consolidated financial statement for the health system. It is available upon request and approval by the CFO of Highmark Health. HH has adopted a conflict of interest policy that is uniformly applied to all HH organizations. This policy is not made available to the public.”

“Part VII, Section B, Line 1 The expenditures of Highmark Health are paid by affiliated organizations and reimbursed by Highmark Health. The affiliate organizations issue Forms 990 separate from Highmark Health. Listed in this Form 990, Part VII are the five highest paid independent contractors that provided services to Highmark Health for which Highmark Health reimbursed the affiliated organizations.”