St John Health System Inc

“Many of the persons listed on Part VII have a "business relationship" with each other by virtue of employment by St. John Health System, Inc. related entities.”

“St. John Health System, Inc. has a single corporate member, Ascension Health.”

“St. John Health System, Inc. has a single corporate member, Ascension Health, who has the ability to elect members to the governing body of St. John Health System, Inc.”

“All decisions that have a material impact to St. John Health System, Inc.'s financial information or corporation as a whole are subject to approval by its sole corporate member, Ascension Health. Ascension Health, the sole corporate member of St. John Health System, Inc., has designated a system authority matrix which assigns authority for key decisions that are necessary in the operation of the System. Specific areas that are identified in the authority matrix are: new organizations and major transactions; governing documents; appointments/removals; evaluation; debt limits; strategic and financial plans; assets; system policies and procedures. These areas are subject to certain levels of approval by Ascension per the system authority matrix.”

“St. John Health System, Inc. ("SJHS") has hired a third party preparer experienced in the preparation of Form 990 to assist in the preparation of the return. The Senior Vice President/Chief Financial Officer and other personnel of SJHS will work closely with the paid preparer in gathering the information for the return and will perform the initial detailed review of the return. The return will then be reviewed by the SJHS Audit Committee (as delegated by the Board of the filing Organization). A copy of the return will be provided to all voting Board Members of the filing organization prior to filing.”

“At every fiscal year end, St. John Health System, Inc. (SJHS) distributes a copy of the current Conflict of Interest Policy and Procedure Bulletin, together with an explanation and questionnaire to the members of the Board of Directors, administrative officers and key employees of SJHS, its subsidiaries and affiliates, including Jane Phillips Nowata Hospital, Inc. The Board Members, administrative officers and key employees of SJHS, its subsidiaries and affiliates must complete the questionnaire and return it to the designated SJHS official within two weeks of receipt. Completed questionnaires are reviewed and summarized by the Vice President, Corporate Compliance and Integrity, or his/her designee. That individual then presents the questionnaire results to the heads of each hospital for further provision to the various boards' Audit and Compliance Committees. The Audit and Compliance Committees, as appropriate, submit a confidential report to their Board Chairman summarizing the questionnaire results. The Board Chairman, as appropriate, may review with the Executive Committee the responses to the questionnaire results. Members of a committee with governing board delegated powers annually sign a statement which affirms such person has received a copy of the Conflict of Interest Policy, has read and understands the Policy, has agreed to comply with the Policy, and understands that the Organization is charitable and, in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish its tax-exempt purpose.”

“Compensation for all executives in St. John Health System, Inc. ("SJHS"), is analyzed by an independent health care consulting firm. The analysis includes a fair market value assessment and establishment of a range for each position based on research of comparable health care systems of similar size. The report and recommended compensation levels for each executive management position is reviewed and approved by the Executive Compensation Committee of the SJHS Board of Directors. During the review and approval of the compensation, documentation of the decision was recored in the board minutes.”

“The Organization will provide any documents open to public inspection upon request.”

“Independent Contractor Reporting: Compensation of independent contractors is paid by and reported on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, of St. John Medical Center, Inc. EIN 73-0579286. Expenses are allocated to and reimbursed by the filing organization to St. John Medical Center, Inc. As such, the organization has not reported independent contractors paid on Form 990, Part VII, Section B.”

“and St. John Broken Arrow, Inc. ("St. John Broken Arrow"). St. John, these subsidiaries, and all other subsidiaries under St. John's direct or indirect control or ownership are referred to herein as "the St. John System". The St. John System supports the purpose and activities of Ascension Health and its powers must be exercised in accordance with the teachings, traditions and canon law of the Roman Catholic Church and the ethical and religious directives for Catholic health facilities promulgated by the National Conference of Catholic Bishops of the United States Catholic Conference. As the parent company of the St. John System, St. John supports the activities of the entire health system by providing executive leadership, centralized support, and managerial functions. Parent-level activities in support of the St. John System include strategic planning, capital and operational budgeting, human resources administration, centralized cash management and treasury functions, accounting and financial reporting, information technology development and support, business office, decision support, and other support and management functions. In fiscal year 2014, the St. John System provided hospital-based services through the Medical Center, Jane Phillips (including Jane Phillips Nowata Hospital, Inc.), St. John Sapulpa, St. John Broken Arrow, and St. John Owasso. These services include a broad range of inpatient and outpatient services serving the population of Northeastern Oklahoma at six owned hospital campuses as well as two additional critical access hospitals in rural Oklahoma and Kansas that are managed by Jane Phillips, with a combined total of nearly 800 hospital beds in operation. St. John's principal for-profit subsidiary, Utica, engages in a variety of health care activities, including: part ownership of a health insurance plan. Utica owns, operates or manages a comprehensive clinical and anatomical laboratory, a medical management service organization, several urgent care centers, a pharmacy, and various other medical practice facilities; and employs more than 450 physicians and mid-level providers. St. John, through Utica and other entities, is also an investor in several joint ventures, including two ambulatory surgery centers. St. John's fundraising activities are conducted through St. John Foundation, a charitable foundation which seeks gifts, bequests, and endowments, all of which are used in furtherance of St. John's charitable activities. St. John conducts a variety of senior and low-income, long-term care activities in Northeastern Oklahoma through St. John Villas. St. John Villas provides a comprehensive nursing-care and long-term residential facility that is designed for seniors in need of long-term nursing care or who are recovering from illness or injury. The facility provides seniors with a safe and secure environment to help them live happy and fulfilled lives. St. John Villas also sponsors "HUD" low income housing projects, including housing for physically-challenged low-income individuals. Mission and Values: As a Catholic healthcare organization, St. John carries on the mission of its sponsors, through Ascension Health, of continuing the healing ministry of Jesus Christ. It aspires to provide health care that works, health care that is safe, and health care that leaves no one behind, with a promise to our patients and the communities we serve of providing medical excellence and compassionate care. It operates in conformance with "the ethical and religious directives for Catholic health facilities." Faithful to the sponsorship mission, philosophy and values, St. John's mission is to provide healthcare and related ministries for the people served, especially the sick, the poor and the powerless. The Board of Directors, management and employees of St. John are guided in their day-to-day actions and interactions with those who serve and who are served by the values of service to the poor, wisdom, reverence, crea”

“to area schools to support nursing education. Other Community Benefit and Outreach Activities: The senior care facility operated by the St. John System operates at or near a loss, as do the critical access hospitals. The St. John System considers these subsidized activities to be essential components of its mission of service. The St. John System provides other forms of community benefit in the form of free, or reduced-charge educational seminars for the general public on wide ranging topics from prenatal care to chronic disease management. It participates in community-wide health screening events, blood donation drives, and a number of other outreach activities to improve the health status of the residents of Northeastern Oklahoma and the surrounding area. Other Program Service Accomplishments: As previously discussed, the St. John System is organized and operated to provide medical excellence and compassionate care to the citizens of Northeastern Oklahoma, with a special preference for the poor and disadvantaged. Summary: The St. John System's role as one of the significant safety-net health care providers for the region continues to grow in prominence. St. John reinvests 100% of any profits derived into new and expanded services to the community. The St. John System is very proud of its history of service to the community and views its responsibility to continue to provide medical services to everyone, especially the poor and disadvantaged, very seriously. As the St. John System continues to face growing financial challenges, it becomes increasingly difficult to sustain our mission of service. Nevertheless, we believe that the quantifiable community benefit as well as the many other areas of service provided by the St. John System and identified in 2014, continue a sound record of stewardship and a significant contribution to the well-being of both the collective communities and individuals within those communities we serve.”

“Statements Regarding Other IRS Filings and Tax Compliance The salaries reflected on Form 990 were all reported on the Form 941 Employer's Quarterly Federal Tax Return of St. John Medical Center, Inc. (SJMC). These salaries were reimbursed to SJMC by the filing organization and were included in the number of employees on SJMC's calendar year 2013 Form W-3. The number of employees reported on Part V, Line 2a of Form 990 by the filing organization represents the number of employees providing services to the filing organization during calendar year 2013.”

“Transfer to Affiliates -8,075,079. Pension and Other Post-Retire Costs 5,131,533. Restricted Contibutions for Purchase of PE 1,317,169. Restricted Fund Balance CY Additions 4,872,176. Released from Restrictions -1,317,169. Other Net Asset Activity -4,144,339.”