Covenant Health System

“Members or stockholders st. Joseph health system and lubbock methodist hospital system are the corporate members of covenant health system.”

“Power to elect or appoint members covenant health system has a tiered governance in which the corporate members reserve the right to appoint trustees to the covenant health system board. All trustee appointments that come from the covenant health system board as nominations must be approved by the st. Joseph health system, as the corporate member, and the st. Joseph health ministry, as the organizational sponsor. The st. Joseph health system member approves 50% of the board nominations, plus the voting ceo. The lubbock methodist health system member approves the other 50% of board nominations.”

“Decisions reserved to members or stockholders the reserved rights in our tiered governance structure contemplate approval by the st. Joseph health system member of financing, budgets, unbudgeted expenditures of defined amounts, strategic plan, appointment of auditors, creation or investment in a legally recognized entity, joint ventures, purposes, sale or disposition of real property, merger or sale of substantially all assets, appointment and removal of trustees, adoption or amendment of articles or bylaws.”

“Process used to review the form 990 the form 990 was prepared by the finance department based on information received from various departments of the organization as applicable. The form 990 was then reviewed by an officer of the organization. A copy of the form 990 filing was distributed to all voting members of the board for the april 2015 meeting. During the finance committee meeting, management presented and discussed certain disclosures and information included in the form 990. The finance committee chair then provided a summary at the full board meeting.”

“Description of process to monitor transactions for conflicts of interest officers, trustees and key employees are required to disclose the existence and nature of any actual, apparent, or potential conflicts of interest he/she may have that might result in or have the appearance of a conflict in connection with that individual satisfying their fiduciary obligations to the organization. Disclosures shall be made promptly any time an actual, apparent or potential conflict of interest arises and before the consummation of any contract, transaction or arrangement that is the subject of the potential conflict of interest. With guidance from the st. Joseph health system chief compliance officer (cco), the chief executive and/or the governing board chairperson, as appropriate, considers the matter initially. If the matter cannot be resolved at that level, the matter is escalated to the cco. The cco, in consultation with the st. Joseph health system general counsel, reviews the matter and presents recommendations to the governing board and/or board committee, as appropriate, for discussion and vote. The individual whose potential conflict is being reviewed may be requested to be present during any meeting in which the board or board committee conducts its evaluation but shall be excused for any discussion or vote.”

“Offices & positions for which process was used & year process was begun the organization's chief executive officer is paid by its tax exempt parent, st. Joseph health system, and is disclosed as a person paid by a related organization. Executive compensation is approved by the covenant health system conflicts and compensation committee, which is comprised of independent persons. The committee reviews comparability data prepared for and compiled by the st. Joseph health system worklife committee, a committee of the st. Joseph health system board of trustees comprised of independent members. The st. Joseph health system worklife committee acts in accordance with a committee charter approved by the st. Joseph health system board of trustees and an executive compensation philosophy. The charter directs the st. Joseph health system worklife committee to administer the executive compensation program and to approve program changes, as necessary, to ensure alignment with the stated philosophy and ensure continued compliance with federal and state regulations on behalf of the st. Joseph health system board of trustees. Overall, the philosophy is intended to reward a broad spectrum of high organizational and individual performance expectations, as well as retention of key management talent. The executive compensation philosophy defines the market for administering compensation as a comparable set of for profit and not-for-profit health care delivery systems. St. Joseph health system provides compensation to its executives in the form of base salary, an annual incentive program, and benefits. To ensure compensation philosophy adherence and general fair market value compensation, the committee regularly reviews information from multiple sources of market data and engages legal counsel and consulting support, as needed. They use this information to support ongoing effectiveness and administration of the program. The st. Joseph health system worklife committee meets at least 3 times a year and takes action in executive session. These actions are documented in detailed minutes and approved in subsequent meetings. A full compensation review is conducted on a biennial basis and the last review was performed in june 2013. During the year, the covenant health system conflicts and compensation committee reviewed and approved any changes in compensation for key executives predicated on the analysis and recommendation by an independent third party consulting firm with expertise in healthcare executive compensation. In addition, annual incentive awards are reviewed and approved prior to payment consistent with the most recent compensation biennial review and in accordance with the plan document. These actions are documented in detailed minutes which are subsequently approved at the committee meeting.”

“Process for making documents available to the public the organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request. The sjhs community benefit reports, financial reports, and philanthropy reports are also available on the sjhs internet site. Audited financial statements are attached to form 990.”

“Organization's mission covenant health system is committed to extending the christian ministry by caring for the whole person-body, mind and spirit, and by working with others to improve health and quality of life in our communities.”

“Realizing our mission covenant health system (covenant health/covenant health lubbock/ch) has been meeting the health and quality of life needs of the local community for over 15 years. Serving the communities of west texas and eastern new mexico, covenant health lubbock includes covenant medical center, covenant children's hospital, covenant specialty hospital, and covenant medical group. Covenant health provides quality care in the areas of cardiac services, mobile mammography, mobile dental, outpatient cancer treatment, primary care, women's health and children's health. With over 4,500 employees committed to realizing the mission, covenant health is one of the largest employers in the west texas region. As a member of the st. Joseph health system, covenant health is committed to extend the healing ministry of jesus in the tradition of the sisters of st. Joseph of orange. This mission has guided our catholic healthcare ministry since the opening of our first hospital in eureka, california nearly 100 years ago. The sisters of st. Joseph of orange trace their roots back to 17th century france and the unique vision of a jesuit priest named jean-pierre medaille. He sought to organize an order of religious women who, rather than remaining safely cloistered in a convent, ventured out into the community to seek out "the dear neighbors" and minister to their needs. The congregation managed to survive the turbulence of the french revolution and eventually expanded, not only throughout france, but throughout the world. In 1912 a small group of sisters of st. Joseph went to eureka, california, at the invitation of the local bishop, to establish a school. A few years later, the great influenza epidemic of 1918 caused the sisters to temporarily set aside their education efforts to care for the ill. They realized immediately that the small community desperately needed a hospital. Through bold faith, foresight, and flexibility in 1920, the sisters opened the 28-bed st. Joseph hospital of eureka, the first st. Joseph health system ministry. Three mission outcomes strategically guide our ministry work covenant health is committed to three systemwide mission outcomes: 1) sacred encounters, 2) perfect care, and 3) healthiest communities. 1) every interaction will be experienced as a sacred encounter. The goal of sacred encounter has a direct connection to the overall mission. Our value of dignity calls for us to respect each person as an inherently valuable member of the human community and as a unique expression of life. We strive to do this by keeping at the forefront of our minds the understanding of the impact we can have on one another with every action we take. At covenant health we educate our employees on what is expected behavior in relation to patient care, customer service and teamwork. Employees are introduced to these expectations and to the goal to make every encounter sacred at new employee orientation. These concepts are also integrated into employee's 90 day and annual evaluations. This is reinforced throughout their employment through both optional and mandatory training, leadership development and our hr standards of behavior. Sacred patient encounters are recognized at ch through hero cards, employee of the month stories and a values in action recognition program. Leaders are sent to mission and mentoring which is a formation program lead by sjhs. Patient and staff sacred stories are also shared regularly through weekly messages from our ceo, vpmi and patient experience office. Our spiritual care and mission services staff strive to offer support, coaching and mentoring to staff to reinforce the mission and values. Covenant health has a no one dies alone program in which staff volunteer to spend time with patients who are expected to die in the hospital and have no friends or family present. Schwartz center rounds sessions are held in order to allow caregivers to reflect on and discuss the impact of compassionate care. 2)”

“Other fees exceeding 10% purchased services $ 42,272,723 professional fees $ 53,130,062 ------------ total $ 95,402,785”

“Other changes in net assets equity transfer to tax-exempt parent $ (35,065,557) contributed capital $ 1,930,921 -------------- total $ (33,134,636)”