Catholic Health Initiatives

“Catholic health initiatives' board of stewardship trustees does have an executive committee. The executive committee is comprised of the board chair, the chair-elect or vice-chair, and up to three additional trustees appointed by the board of stewardship trustees. Except as otherwise provided by law, the executive committee has and may exercise such powers as may be delegated to it by the board of stewardship trustees. All actions taken by the executive committee shall be promptly reported to the board of stewardship trustees at the next regular meeting of the board of stewardship trustees. During the fiscal year ended june 30, 2014, the executive committee was comprised of the following individuals: chris lowney kevin lofton lillian murphy, rsm mary jo potter patricia smith, osf, jcd during the fiscal year ended june 30, 2014, the following individuals served as staff to the executive committee: patricia webb”

“Chi amended its bylaws on december 11, 2013 and amended its bylaws and articles of incorporation on june 11, 2014. Significant changes include an updated mission statement and to allow for a management structure with the positions of chief executive officer (ceo) and president to be held by different individuals, and to permit the ceo to appoint one or more presidents and one or more executive vice presidents to serve the corporation.”

“Form 990 instructions define a "member" as any person who, pursuant to a provision of the organization's governing documents or applicable state law, has the right to... "approve significant decisions of the governing body" or to... "receive a share of the organization's profits or excess dues or a share of the organization's net assets upon the organization's dissolution". The corporation was founded by religious institutes of the roman catholic church. Those religious institutes of the roman catholic church that agree to accept the mission and vision of the organization and meet certain other requirements established by the board of stewardship trustees, and who are approved by a 2/3 vote of the board of stewardship trustees, have "participating congregation" rights and duties under the bylaws of the organization. Participating congregations have the right to approve substantial changes to the mission and philosophical direction of the organization, approve amendments to the articles and bylaws affecting any provision governing the qualifications, rights or responsibilities of the participating congregations, select and remove a person who represents that participating congregation in exercising its rights and duties, participate in the distribution of assets upon the dissolution of the organization, participate in organizational advocacy efforts, encourage members of the participating congregations to participate in the ministries sponsored by the organization, and participate through their representatives in meetings held twice per year with the board of stewardship trustees. (section 3.1.1 of the bylaws of catholic health initiatives.)”

“Form 990 instructions indicate that an organization must answer "yes" if at any time during the organization's tax year, there were one or more persons who had the right to approve or ratify decisions of the organization's governing body such as approval of the governing body's decision to dissolve the organization. The corporation was founded by religious institutes of the roman catholic church. Those religious institutes of the roman catholic church that agree to accept the mission and vision of the organization and meet certain other requirements established by the board of stewardship trustees, and who are approved by a 2/3 vote of the board of stewardship trustees have participating congregation rights and duties under the bylaws of the organization. Participating congregations have the right to approve substantial changes to the mission and philosophical direction of the organization, approve amendments to the articles and bylaws affecting any provision governing the qualifications, rights or responsibilities of the participating congregations, select and remove a person who represents that participating congregation in exercising its rights and duties, participate in the distribution of assets upon the dissolution of the organization, participate in organizational advocacy efforts, encourage members of the participating congregations to participate in the ministries sponsored by the organization, participate through their representatives in meetings held twice per year with the board of stewardship trustees. (section 3.1.1 of the bylaws of catholic health initiatives).”

“The catholic health initiatives (chi) vice president of tax and legal transactions conducts a review of the form 990 in a meeting with the chi tax director. After incorporation of any changes resulting from this review, the form 990 is provided to the chi board of stewardship trustees a week in advance of the board meeting as part of the board packet. The form 990 is scheduled to be formally presented to the board by the vice president of tax and legal transactions at a board meeting. Upon chief financial officer approval and signature, the vice president of tax and legal transactions files the final form 990 as presented to the board, making any non-substantive changes necessary in order to effect e-filing. Any such changes are not re-submitted to the board.”

“All catholic health initiatives (chi) officers, trustees and employees are covered by a conflict of interest policy. Additionally, all chi officers, trustees and employees are required to act in accordance with chi's standards of conduct, which include the avoidance of conflicts of interest or the appearance of conflicts. The board of stewardship trustees conflict of interest policy provides that all members of the board of stewardship trustees and of any board committee are required to promptly and fully disclose to the board chair situations that may create a conflict of interest when they become aware of the situation. In addition, all members of the board of stewardship trustees are required to annually disclose any conflicts of interest via completion of a conflict of interest disclosure form which is reviewed by the organization's senior vice president legal services, and general counsel. Any identified potential conflicts are reported to the board chair, who is charged with further investigation of the conflict(s), as he or she deems appropriate; documentation of conclusions with respect to the existence of a conflict (including relevant facts and circumstances); and reporting to the board executive committee concerning the review, evaluation, and conflict determination. To the extent that the board chair and any other trustee disagree as to whether a circumstance gives rise to a conflict, the board executive committee makes the final determination as to the existence of a conflict. The potentially conflicted trustee is excluded from voting as to the existence of a conflict, and is excused from the room while voting concerning the matter is conducted. In any circumstance where a trustee has been identified as having a conflict of interest with respect to a particular transaction, that trustee is also excluded from voting with respect to that transaction. The conflict of interest policy with respect to chi employees requires that all employees complete and sign a conflict of interest disclosure form at the time of hiring. Thereafter, director level and above employees must annually certify as part of the performance evaluation process that they have no conflicts of interest. Further, all chi employees, regardless of employment level, are subject to a general obligation to disclose to their supervisors any conflicts that arise during the year. Failure to disclose actual or potential conflicts may result in disciplinary action.”

“Catholic health initiatives (chi) has a defined compensation philosophy. Both the executive and non-executive compensation structures and ranges are reviewed annually in comparison to market data. Chi uses the hay group as the independent third party to assess executive compensation programs and to ensure the reasonableness of actual salaries and total compensation packages. Compensation of the senior most executives is reviewed annually. The hay group reviews both cash and total compensation for overall reasonableness, for adherence to chi's compensation philosophy, and for comparability to the not-for-profit healthcare market. This independent review is delivered by the hay group to the hr committee of the chi board of stewardship trustees annually at their september meeting and minutes are shared with the full board at the december meeting. The last review was september 18, 2014. In addition, in december 2009, the hay group completed a comprehensive review of all positions at the level of vice president and above to determine and validate appropriate compensation levels. These levels have been reviewed annually since and revised based on market data, where applicable.”

“See narrative for form 990, part vi, section b, line 15a.”

“Catholic health initiatives (chi) has not formally adopted a written policy or written procedure regarding joint ventures. However chi's system-wide joint venture model operating agreement incorporates controls over the venture sufficient to ensure that (1) the exempt organization at all times retains control over the venture sufficient to ensure that the partnership furthers the exempt purpose of the organization; (2) in any partnership in which the exempt organization is a partner, achievement of exempt purposes is prioritized over maximization of profits for the partners; (3) the partnership does not engage in any activities that would jeopardize the exempt organization's exemption; (4) returns of capital, allocations, and distributions must be made in proportion to the partners' respective ownership interests; and (5) all contracts entered into by the partnership with the exempt organization must be at arm's-length, with prices set at fair market value. Any joint venture agreements that do not conform to the model agreement are generally reviewed by counsel.”

“Catholic health initiatives' articles of incorporation are available on the colorado secretary of state website. Catholic health initiatives' consolidated audited financial statements are available on the chi website at www.catholichealthinit.org and at www.dacbond.com. Catholic health initiatives' bylaws and conflict of interest policy are not publicly available.”

“An organization is not required to report compensation from a related organization to a person listed on form 990, part vii, section a if the organization is unable to secure the information on compensation paid by a related organization after making a reasonable effort to obtain it. In that case, the organization shall report the efforts undertaken on schedule o. Catholic health initiatives (chi) believes that it has fully disclosed all compensation paid by related organizations to the individuals listed on schedule j. However, in the event that any related party compensation has been inadvertently excluded, chi offers the following information concerning reasonable efforts: chi performed a comprehensive review of the compensation paid by each organization within the chi family as follows: each chi legal entity provided a list of its officers, directors, trustees, key employees and estimated top ten highest paid employees. This information was provided to various departments including, inter alia, chi's centralized accounts payable service center, centralized payroll center and benefits coordinator. Each department provided a report reflecting the amount paid to each reportable individual by payor-entity. Each reportable individual received a report reflecting their compensation as it will be reported on the form 990 (including compensation paid by related organizations) and were asked to verify the accuracy of the information.”

“The mission of the corporation is to nurture the healing ministry of the church, supported by education and research. Fidelity to the gospel urges the corporation to emphasize human dignity and social justice as it creates healthier communities. The corporation, sponsored by a lay-religious partnership, calls other catholic sponsors and systems to unite to ensure the future of catholic health care. To fulfill this mission, the corporation, as a values-based organization, will assure the integrity of the ministry in both current and developing organizations and activities; research and develop new ministries that integrate health, education, pastoral, and social services; promote leadership development and formation for ministry throughout the entire organization; advocate for systemic changes with specific concern for persons who are poor, alienated, and underserved; and steward resources by general oversight of the entire organization.”

“Chi housing initiatives, llc is a 68 unit apartment building constructed in williston, north dakota by catholic health initiatives to meet the acute need for affordable housing in the region. The affordable housing initiative will alleviate some of the community challenges associated with the local housing economy and the impact that it has on mercy medical center's (williston, nd) ability to meet the healthcare needs of the region.”

“Catholic health initiatives (chi) is a national nonprofit health organization headquartered in denver. The faith-based system operates in 18 states and comprises 92 hospitals, including four academic health centers, and 24 critical-access facilities; community health-services organizations; accredited nursing colleges; home-health agencies; and other facilities that span the inpatient and outpatient continuum of care. In fiscal year 2014, chi provided approximately $910 million in charity care and community benefit; a 19 percent increase over fiscal year 2013. Community benefit includes the cost of supplies and labor related to free clinics, donations and other services provided to meet the needs of the poor and community. Total charity care and community benefit costs equaled more than $1.7 billion with the inclusion of the unpaid costs of medicare. Chi's exempt purpose is to serve as an integral part of its national system of hospitals and other charitable entities, which are described as market-based organizations, or mbos. An mbo is a direct provider of care or services within a defined market area that may be an integrated health system and/or a stand-alone hospital or other facility or service provider. To fulfill its mission, chi, as a values-driven organization, assures the integrity of the ministry in both current and developing organizations and activities. Chi fosters research and development of new ministries that integrate health, education, pastoral and social services; promotes leadership development and formation for the ministry throughout the entire organization; advocates for systemic changes with specific concern for persons who are poor, alienated and underserved; and stewards resources by general oversight of the entire organization. To further the exempt purpose, chi provides strategic planning and management services as well as centralized "shared services" for the mbos. The provision of centralized management and shared services - including areas such as accounting, human resources, payroll and supply chain - provides economies of scale and purchasing power to the mbos. Cost savings associated with centralized services for the fiscal year ended june 30, 2014, include more than $203.7 million in supply chain expense and approximately $46.3 million for insurance costs. The cost savings achieved through chi's centralization enable mbos to dedicate additional resources to high-quality health care and community outreach services to the most vulnerable members of our society. Reporting across the system: the following examples of community benefit activities in fiscal year 2014 represent only a small fraction of those taking place on a daily basis at these facilities and throughout the catholic health initiatives health care system. Chi st. Joseph's children, albuquerque, nm st. Joseph community health (sjch) is a non-profit organization that works to ensure children reach kindergarten with the health and family capacity necessary to support learning. The home visiting program is the flagship program of sjc, providing home visits by trained professionals to expectant moms and families with first born children. Sjc utilizes an outcomes-based model (first born) that has proven results in improving child and family outcomes. The benefits of early intervention and health promotion in maternal and child health are well-documented and have a lifetime affect. The net benefit provided to the community by this program during fiscal year 2014 was $2,342,530 and included 10,392 contacts. Sjc also provided funding to the new mexico lions eye foundation, an entity affiliated with lions club international, a volunteer organization, to fund several different programs centered on all aspects of eye care including annual screening for children three to five years old and the provision of used eye-wear to needy individuals. The net benefit provided to the community for the fiscal year was approximately $18,224 not including t”

“Chi st. Francis health st. Francis medical center, breckinridge, mn st. Francis provides prescription medications to persons who have no means to procure those medications. Provision of these medications helps the recipients to recover more quickly from their illnesses, better manage chronic conditions, and avoid costly hospitalizations and interventions. In fiscal year 2014, prescription drugs (valued at $3,926) were provided to 40 low-income, elderly, and/or uninsured individuals. St. Francis also partnered with the local rotary club to provide blood tests as a screen for those in the community who would not have preventative services covered by their insurance. A nominal fee was paid by each participant to cover the costs of the reagents. However, staff time, advertising, postage, etc. Was not covered by the fee. Over 100 people participated in the screenings. Chi mercy hospital, devil's lake, nd mercy hospital provides a variety of education programs to the community at reduced or no charge to the recipient. Last year a cumulative total of 644 individuals benefited from the programs and/or newsletters addressing nutrition, prepared childbirth, grief issues, unsafe lifestyle choices, advance directives, women's health, suicide prevention, strength training, and participation in many community health fairs. The hospital also has a cardiac exercise program. All cardiac patients under the care of mercy hospital's medical staff are eligible for our exercise program for a nominal monthly fee. Other patients with specific disease states are also eligible for this service and routinely participate. The hospital also provides a "baby and i" breast-feeding instruction program. The incidence of pediatric admissions, particularly for newborns, has been reduced by this home breast feeding instruction program, which was originally funded by the sisters of mercy of omaha. The "baby and i' program provides in-house instruction to mothers on the benefits of and proper techniques for breast-feeding. Follow up visits at home with the mother are conducted to provide assurance and continuity of care to the mother and infant. A support group also meets weekly to provide further support and enhance the benefits of breast-feeding. Unity family healthcare, little falls, mn (chi st. Gabriel's health) the cornerstone of ufh is chi st. Gabriel's hospital, a 25-bed critical access hospital (cah), which originally was organized in may of 1891 and received its first patients in january of 1892. Unity includes chi st. Gabriel's hospital, family medical center, little falls orthopedics, chi st. Gabriel's health st. Camillus place and chi albany area health. Unity facilities offer a variety of support groups and similar activities, including such activities as the prostate cancer support group, eating disorders support group, adoption support group, the alanon group and the hospice family support group. In 2014, the value of the support for this activity totaled nearly $3,077. Most of the groups were developed in response to specific requests from individuals in the community. In some cases, unity provides the group facilitators. In other cases, representatives from the community provide that leadership. The support groups served 246 people in 2014. Unity facilities, especially st. Gabriel's hospital and albany area hospital, offer a variety of free health screenings and health fairs for the communities in which we serve. The total value of these activities was nearly $23,236 in fy 2014, with 1706 people participating in the health fairs/screenings. The screenings include such things as blood pressure checks at a local extended care facility (not part of unity), other screenings, firemen physicals, pulmonary screening and flu shots. The little falls area health fair, which is held in the spring of even-numbered years, attracted more than 1,000 participants. Chi st. Joseph's health, park rapids, mn the chi st. Joseph's community dental clinic provides denta”

“Contract svcs - support fees - total expense: 6269237, program service expense: , management and general expenses: 6269237, fundraising expenses: ; contract svcs - collection fees - total expense: 1349927, program service expense: , management and general expenses: 1349927, fundraising expenses: ; contract svcs - other - total expense: xxx-xx-xxxx, program service expense: 2236591, management and general expenses: xxx-xx-xxxx, fundraising expenses: ; contract svcs - rev cycle - total expense: 24392610, program service expense: , management and general expenses: 24392610, fundraising expenses: ; cntrct svcs - him - total expense: xxx-xx-xxxx, program service expense: , management and general expenses: xxx-xx-xxxx, fundraising expenses: ; cntrct svcs - patient access - total expense: 24781130, program service expense: , management and general expenses: 24781130, fundraising expenses: ; cntrct svcs - enhanced svc - total expense: 4609943, program service expense: , management and general expenses: 4609943, fundraising expenses: ; cntrct svcs- levrgd cost - total expense: 3159424, program service expense: , management and general expenses: 3159424, fundraising expenses: ; cntrct svcs - support cost - total expense: 16814690, program service expense: , management and general expenses: 16814690, fundraising expenses: ; consulting - reimbursement - total expense: 82950, program service expense: , management and general expenses: 82950, fundraising expenses: ; consulting - clinical - total expense: 409670, program service expense: , management and general expenses: 409670, fundraising expenses: ; consulting - administrative - total expense: 8583928, program service expense: 194636, management and general expenses: 8389292, fundraising expenses: ; consulting - strategic planning - total expense: 239922, program service expense: , management and general expenses: 239922, fundraising expenses: ; consulting - other - total expense: 48886589, program service expense: 782239, management and general expenses: 48104350, fundraising expenses: ; contract labor - aims - total expense: 90, program service expense: 90, management and general expenses: , fundraising expenses: ; contract labor - other - total expense: 86833625, program service expense: 63384, management and general expenses: 86770241, fundraising expenses: ;”

“Capital resource pool contributions - 51653364; equity transfers to/from affiliates - -28664690; pension adjustment - -43263039; investment in st. Luke's - -xxx-xx-xxxx; returned grants - 270089;”