Baptist Healthcare System Inc

“GOVERNING BODY BUSINESS RELATIONSHIPS: The Board of Directors is made up of executives from related organizations. The following individual has a business relationship in that he serves on the Board of Directors of the organization and is an officer and/or director of a related organization: Gerard Colman.”

“FORM 990 REVIEW PROCESS: The internally prepared Form 990 is reviewed by an outside accounting firm. A copy of the IRS Form 990 is provided to the Board of Directors prior to the filing of the return. Any questions or comments are addressed by explanation or a change to the form.”

“DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST: A conflict of interest is any circumstance, relationship, (financial or otherwise), activity or decision made in the course of governance, management or professional responsibilities or otherwise, that adversely influences or appears to adversely influence the ability of a covered person, (any director, officer, non-director member of a committee with governing board delegated powers or other person in a similar position of authority over BHS, including executive management and medical staff presidents) to: 1) make objective decisions on behalf of BHS and/or 2) act in the best interests of BHS in a manner consistent with the tax-exempt purposes of BHS. Each BHS covered person shall annually complete and furnish to the BHS Chief Legal Officer a conflict of interest questionnaire listing then-known existing and potential conflicts of interest. Such statement shall affirm that the person has received a copy of the BHS Conflict of Interest policy, has read and understands this policy, has agreed to comply with this policy, and understands that BHS is a charitable organization and that in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. The fact that a conflict of interest questionnaire has been completed does not relieve an individual of the duty to disclose a conflict of interest before action is taken on any contract, transaction, or arrangement to which that conflict of interest may be relevant. The completed questionnaires are reviewed by the Board of Directors or the Governance Effectiveness Committee for any potential conflicts. The Board or Committee will determine by a majority vote of disinterested directors whether the disclosed financial or special interest may result in a conflict of interest. If, subsequent to completion of the annual questionnaire, any covered person becomes aware of a financial or special interest that could give rise to a conflict of interest with respect to a proposed contract, transaction, or arrangement involving BHS, the covered person will promptly disclose the interest.”

“COMPENSATION DETERMINATION PROCESS: Annually in December, the BHS Compensation Committee reviews the compensation, including base compensation and incentive compensation, for the CEO and all officers and key employees of BHS. The BHS Compensation Committee is comprised of independent Board Members. The Committee retains a Compensation Consultant to advise the Committee and who provides data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated healthcare organizations. The Committee reviews this information in approving annual base and incentive compensation and other items of reportable compensation described on Schedule J of the IRS Form 990. The decisions of the Committee regarding compensation are contemporaneously documented in the minutes of the Committee. Annually, the Committee Chairperson and the Compensation Consultant provide a report on executive compensation to the full Board of Directors of BHS.”

“AVAILABILITY OF GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, & FINANCIAL STATEMENTS TO GENERAL PUBLIC: In adherence to the Master Trust Indenture among Baptist Healthcare System, Inc., Baptist Health Medical Group, Inc. and U.S. Bank National Association, as Master Trustee, dated as of April 1, 2022, BHS reports its financial results on a quarterly basis to the Master Trustee who in turn makes them available through Electronic Municipal Market Access. Additionally, the organization will provide any documents open to public inspection upon request.”

“HOURS WORKED FOR RELATED ORGANIZATION: Baptist Healthcare System officers provide services to Baptist Health and its subsidiaries. Hours worked are not tracked on an entity by entity basis. Therefore, all officers' hours reported on Form 990, Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors represent aggregate hours worked per week for all Baptist Health entities.”

“Since its inception in 1924, Baptist Healthcare System, Inc. ("Baptist Health") has been dedicated to providing accessible, quality healthcare to all patients regardless of their ability to pay. The hospitals owned and operated by Baptist Healthcare System, Inc. under tax identification number 61-0444707 include: Baptist Health Louisville, located in Louisville, Kentucky; Baptist Health Corbin, located in Corbin, Kentucky; Baptist Health Lexington, located in Lexington, Kentucky; Baptist Health Paducah, located in Paducah, Kentucky; Baptist Health La Grange, located in La Grange, Kentucky, Baptist Health Richmond, located in Richmond, Kentucky, Baptist Health Hardin, located in Elizabethtown, Kentucky and Baptist Health Floyd, located in New Albany, Indiana. MISSION: As indicated by its mission statement, "Baptist Health demonstrates the love of Christ by providing and coordinating care and improving health in our communities", Baptist Health endeavors to faithfully continue its Christian heritage of service. Baptist Health is organized and operated exclusively for the benefit of each community that we serve, and each hospital is considered a respected and valuable community asset. Over the last 100 years, Baptist Health has earned a strong reputation for providing compassionate, safe, high quality, cost efficient, and patient-friendly care. The Baptist Health Board of Directors is comprised of local representatives who, along with the Systems' management and employees, understand that they are responsible to their communities for providing the highest quality healthcare services to enhance the physical, emotional and spiritual health and well-being of all. Both the mission and vision of Baptist Health are engrained into the culture of the entire organization. Baptist Health will live out its Christ-centered mission and achieve its vision guided by integrity, respect, stewardship, excellence, collaboration, compassion and joy. VISION: The vision of Baptist Health is to be the premier source for healthcare in Kentucky and Indiana, leading in clinical excellence, providing compassionate care and pursuing a growth model that best meets the needs of our communities and our patients. Our goal is to provide efficient, effective and affordable high-value services through dedicated, skilled teams that are focused on clinical excellence, and more importantly, the people in the communities we serve. The Baptist Health family includes more than 480 points of care at eight wholly owned and two joint venture acute care hospitals; three freestanding emergency departments; over 100 clinic and diagnostic locations and more than 370 physician offices and treatment facilities; offering inpatient, outpatient, urgent care, home and hospice care, rehab and many other services. Baptist Health services are available in 39 Kentucky counties, six counties in Illinois and six counties in southern Indiana. Our physician network of more than 3,200 employed and affiliated physicians, representing over 78 specialties, continues to grow as we strive to improve access to healthcare and enhance the health of the communities that we serve. To ensure that Baptist Health is prepared to meet the growing needs of its communities and is well positioned for the next generation of healthcare, we are working to build on our high-quality and accessible network of care. This multifaceted strategy will enhance existing facilities, build upon our sustainability goals, expand the availability of services and provide a locally convenient continuum of care. Investing in the areas where patients live, work and play - and want to receive care - will help Baptist Health have an even greater and more positive impact on the health of the populations we serve. Because of our strong reputation for providing high-quality patient care that utilizes the latest in medical technology and a vast network of community access points of care, patients seek out Baptist Health facilities for t”

“CHARITY CARE POLICY: To further the Baptist Health mission of enhancing the health and wellness of the people and communities it serves, Baptist Health provides medically necessary inpatient and outpatient care to patients regardless of race, religion, sex, national origin, disability, age or their ability to pay. Baptist Health offers charity care, discounts, and other financial assistance to eligible patients who may not have the financial ability to pay for medically necessary health care services and who otherwise may not be able to receive such services. Baptist Health relies solely on the physician order to determine whether treatment is medically necessary and whether the patient is treated on an inpatient or outpatient basis. Neither the patient's financial condition nor their ability to pay for services has any bearing upon whether, or how, the patient is treated in a Baptist Health facility. Patients are transferred only when Baptist Health does not provide the specialized service that is medically required, or by specific request of the patient. Baptist Health has notices posted throughout the hospital that clearly communicate Baptist Health's charity care policy. Baptist Health employees are instructed in the application of the charity care policy and are trained to recognize situations that indicate the financial resources of a patient may be inadequate. These employees freely and willingly volunteer information regarding the charity care policy to any patient who may express a concern regarding the ability to pay for services. The policy provides that: -- A patient or guarantor whose income plus liquid assets is less than or equal to 300% of the current Federal Poverty Guideline for his or her family size is eligible for a full discount under the Financial Assistance Policy (FAP) after all other healthcare resources have been utilized and exhausted. -- A patient or guarantor whose income plus liquid assets is between 301% and 400% of the current Federal Poverty Guideline for his or her family size is eligible for a 50% discount of the amount for which the patient or guarantor is responsible, after all other healthcare resources have been utilized and exhausted. -- All uninsured patients receiving emergency or medically necessary care are given a discount from gross charges that limits payment responsibility to the amounts generally billed (AGB) by each hospital. Insured patients receiving emergency or medically necessary care that is not allowed by the patient's insurance policy may also be given a discount from gross charges that limits payment responsibility to the amounts generally billed (AGB) by each hospital. If eligible for a discount under the FAP, a patient or guarantor will receive the discount regardless of whether he or she pays or has paid the balance on the billing statement, provided all other healthcare resources are first exhausted. Under no circumstances will an individual who is determined to be eligible for either full or partial financial assistance be charged more for emergency or other medically necessary care than the amounts generally billed (AGB) to individuals who have insurance covering such care. In accordance with the provisions of Section 501(r), if charity care eligibility cannot be determined, good stewardship requires that the hospital initially begin the collection process. However, immediately upon determining that the guarantor is eligible for charity care, collection efforts on the balance eligible for charity will cease and the appropriate balance will be designated as charity. TAX-EXEMPT STATUS REQUIREMENTS: The Internal Revenue Service Revenue Ruling 69-545 provides that a hospital can demonstrate it has met the community benefit standard by having a full-time emergency room open to the public regardless of a patient's ability to pay for services received. All Baptist Healthcare System hospitals operate emergency departments that are open 24 hours a day, 365 days a year. O”

“One of the key functions of the Board of Directors is to ensure that Baptist Health not only utilizes sound financial management but also embraces a culture of compliance that permeates throughout our entire healthcare system. This is best demonstrated by Baptist Health's commitment of resources for compliance activities, including the designation of a Compliance Officer. The compliance function reports to the Audit & Enterprise Risk Committee (established in 1994) which is comprised of three independent members of the Board who are not members of the Finance Committee. Additionally, at least one member has the expertise to be considered a financial expert in the public sector. Another key function of the Board is to ensure that compensation paid to executives is reasonable and meets the guidelines set forth by the Internal Revenue Service. Through the Compensation Committee, (CC), the Board ensures that: 1) members of the CC do not have any conflicts of interest, i.e., they are not employed or receive compensation subject to approval by the executives, 2) the compensation is approved in advance by the CC, 3) the CC obtains and relies upon appropriate comparability data in making decisions, 4) every form of compensation and benefit is included in the comparisons, 5) the CC documents the basis for its decision concurrently with making the decision, and 6) based upon the data, the compensation is reasonable. The following is a summary of Baptist Health's community service for the fiscal year ended August 31, 2024, in terms of services to the poor and indigent and the benefits provided to the communities it serves. QUANTIFIABLE COMMUNITY BENEFIT: As a not-for-profit health care provider, Baptist Health made a vow to the communities we serve to provide care and services that go far beyond what is expected of a hospital, including charity care, education, community involvement and partnerships, and a wide variety of special programs and services. Baptist Health is fully committed to its responsibility as a charitable organization and allocates extensive resources to fulfill that obligation to the community. To commemorate Baptist Health's centennial year, management and staff choose service as the most effective means to support our local communities. We prioritize giving back to our patients in need, assisting our staff through difficult times, providing opportunities for higher education to employees, advancing our service lines with updated technology and equipment, making healthcare services more easily accessible and more. Baptist Health supports community clinics that serve the disadvantaged and aids local agencies in tackling social issues such as food insecurity, addiction, and physical and sexual abuse. We help in small ways close to home by vaccinating residents in underserved neighborhoods, providing needed supplies to new mothers and school children, setting up and donating to food pantries, honoring veterans, and praying for our communities. It's our way of pulling together, and giving back. To the extent possible, Baptist Health has quantified the benefits provided to the communities it serves: Benefits for the Poor and Indigent: Unreimbursed Cost of Charity Care $83,293,000 Benefits for the Broader Community: Net Loss on Subsidized Health Services $ 233,257,000 Community Health Improvement Services 4,887,000 Health Professions Education 4,586,000 Financial & In-Kind Contributions 4,496,000 --------------- Total Benefits for the Community $ 247,226,000 ---------------- Total Quantifiable Community Benefit $ 330,519,000 GLOSSARY OF COMMUNITY BENEFIT TERMS: BENEFITS FOR THE POOR AND INDIGENT: Describes services provided to persons who cannot afford healthcare because of inadequate resources and/or who are uninsured or underinsured. This includes those patients that qualify for Charity, Medicaid, Kentucky's Children Health Insurance Program (KCHIP), Kentucky Hospital Care Program (KHCP) and other persons whose income is”

“Transfer JV Fund 2,647,728. Physician Entity Funding -59,790,249. Other Changes -2,671,789. IS Depreciation -2,518,062. Post Retirement Change -681,610. Balance Sheet Transfer -4,984,846. Unrestricted Capital 53,000. Capitalized Interest -24,181.”