Covenant Health System

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

“Classes of persons and the nature of their rights 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 corproate 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 approves the other 50% of board nominations.”

“Classes of persons, decisions requiring approval & type of voting rights 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. The corporate member, st. Joseph health system member, reserves the right to approve the 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 to review 990 the form 990 was prepared based on information received from various departments of the organization including the finance team, human resources, payroll, compliance and the general counsel's office. The organization engaged an outside accounting firm to prepare the return. The return has been reviewed by an officer of the organization. Management presented the returns to the finance committee, and discussed key disclosures and information included in the form 990. In addition, a copy of the form 990 was distributed to all voting members of the board prior to filing.”

“Process to monitor transactions for conflicts of interest board members, sponsors, senior leaders and key employees are required to disclose any real or potential conflict of interest (coi) in accordance with the psjh coi policy and in connection with that individual satisfying his or her fiduciary obligations to the organization. Disclosures are made annually and/or if at any time an actual, real or potential conflict of interest arises. Psjh chief legal officer and/or the psjh chief risk officer, review all disclosures. Where appropriate, the ceo and/or the board chair consider matters that involve senior leadership or a board member. Psjh chief legal officer and/or chief risk officer review matters where conflict is difficult or cannot be resolved and present recommendations to the appropriate board committee or the ceo, for discussion and resolution. When appropriate, the individual with the real/potential conflict that is being reviewed may participate in the discussion but is excused from the meeting when action is decided. Where appropriate, the chief risk officer or chief legal officer will provide plan to manage conflicts. Auditing and monitoring of this process is done periodically. All documentation of coi disclosures is retained per organization retention policy.”

“It is providence st. Joseph health's intention to make financial information accessible and transparent. Although the filing of form 990 provides insight into how providence st. Joseph health achieves its mission, delivers its programs and stewards its finances, deciphering the information directly from form 990 can be challenging. The following paragraphs provide further information about the process we use to determine compensation for top management, officers and key employees. Providence st. Joseph health has a single fiduciary board, with responsibility for financial oversight associated with fulfillment of the providence st. Joseph health mission, developing system policies, protecting the assets entrusted to the organization and overseeing the strategic and operational affairs of providence st. Joseph health's legal entities. Providence st. Joseph health also maintains a network of community entity boards with responsibility for quality of care oversight, community relations, advocacy and community needs assessments. Providence st. Joseph health has a consistent compensation philosophy for all of its officers, including our senior executives. Salaries for senior executives are reviewed by the providence st. Joseph health committee. The board retains an independent consultant each year to review salaries of those in the most significant leadership roles in the organization. Part of the consultant's role is to review an extensive array of compensation surveys of large, not-for-profit health care systems in the united states. Providence st. Joseph health is one of the larger health systems in the country, and as such, the board benchmarks executive compensation against other large, not-for-profit health systems whose revenue is similar to that of providence st. Joseph health. Additionally, providence st. Joseph healths labor market continues to spread across health care and into general industry. Because of this, providence st. Joseph health also takes into consideration general industry for-profit market data, where applicable. Base salaries for providence st. Joseph health executives are generally targeted to the median level of the market, as identified by the independent consultant and reviewed with the executive compensation committee. The president/ceo utilizes the market information provided by the consultant along with formal performance evaluations, to determine salary recommendations for other senior executives. This process includes a rigorous analysis of those recommendations with the executive compensation committee as a part of the review and approval process. Performance incentives allow executives to earn additional compensation if they achieve specific organizational goals for furthering providence st. Joseph health operating commitments and strategic objectives. The board of directors conducts a thorough review process to ensure performance incentives are aligned with appropriate market practices. The board's process for executive compensation fully complies with irs standards and mirrors best practices. The process to review compensation was last completed march 5, 2019.”

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

“Providence st. Joseph health system on july 1, 2016, providence health & services (phs) and st. Joseph health system (sjhs) entered into a business combination agreement. By coming together, providence st. Joseph health seeks to better serve its communities through greater patient affordability, outstanding clinical care, improvements to the patient experience and introduction of new services where they are needed most. Together, our caregivers serve in 51 hospitals, 829 clinics across alaska, california, montana, new mexico, oregon, texas and washington. The founders of both organizations were courageous women ahead of their time. The sisters of providence and the sisters of st. Joseph of orange brought health care and other social services to the american west when it was still a rugged, untamed frontier. Now, as we face a different landscape - a changing health care environment - we draw upon their pioneering and compassionate spirit to plan for the next century of health care. Providence health & services in 1856, mother joseph and four sisters of providence established hospitals, schools and orphanages across the northwest. Over the years, other catholic sisters transferred sponsorship of their ministries to providence, including the little company of mary, dominicans and charity of leavenworth. Recently, swedish health services, kadlec regional medical center and pacific medical centers have joined providence as secular partners with a common commitment to serving all members of the community. Today, providence serves alaska, california, montana, oregon and washington. St. Joseph health system in 1912, a small group of sisters of st. Joseph landed on the rugged shores of eureka, california to provide education and health care. They later established roots in orange, california, and expanded to serve southern california, northern california and texas. The health system established many key partnerships, including a merger between lubbock methodist hospital system and st. Mary hospital to form covenant health in lubbock texas. Recently, an affiliation was established with hoag health to increase access to services in orange county, california. Realizing our mission covenant medical center, is part of newly formed providence st. Joseph health. Covenant medical center is one of six covenant health hospitals. Covenant health is the largest and most clinically integrated health network serving the west texas/eastern new mexico region. Covenants christian ministry of healing serves a twenty one county service area covering more than 30,000 square miles and 750,000 people. Our mission of healing includes seven hospitals, more than 1,100 licensed beds, 5,000 caregivers, 350 owned or aligned providers, and more than 600 admitting physicians. Covenant health delivers annually an average daily census of more than 400 at its hospitals, more than 28,000 patient discharges, and more than 85,000 emergency room visits. Covenant is the most awarded health provider in the region based on annual quality and safety awards from healthgrades and us news. More than a health system, covenant is the largest private employer in lubbock and the south plains providing more than $1.1 billion in annual economic impact to the communities it serves and is consistently rated as one of the best places to work in lubbock. Covenant is committed to offering accessible, affordable care to lubbocks surrounding areas with hospitals and services offered by covenant hospital levelland and covenant hospital plainview, and covenant medical group, a large employed physician group comprised of approximately 200 primary care and specialist physicians across west texas and eastern new mexico program service accomplishments mental/behavioral health - covenant community outreach counseling center provides counseling services to underserved and low-income persons in our community offering individual, couples and family therapy to people of all ages. During 2018, a partner”

“St. Joseph health system pays all vendors for covenant health system from its shared services. St. Joseph health system issues form 1099-misc under its tax id number and complies with backup withholding rules for reportable payments to vendors.”

“The beginning balance of investments - program related was updated from $29,801,454 in the prior year to $7,301,454. $22,500,000 of intangible assets were inadvertently included in investments - program related in the prior year.”

“Other changes in net assets contributed capital $ 2,071,119 investment in subs $ (47,669,428) equity transfers $ (15,610,558) grace unrestricted fnd bal $ (9,262) -------------- total $ (61,218,129)”

“DESCRIPTION:Other fees TOTAL FEES:97013055”