Christus Health

“Doing Business As: Christus Health Operates Under the Following Names: CHRISTUS St. Joseph Village onlinepaydirect CHRISTUS Health TechSource CHRISTUS Innovations Institute CHRISTUS Healthy Living Spa TLRA US Family Health Plan Uniformed Services Family Health Plan CHRISTUS Health System TechSource USFHP Marketplace Solutions CHRISTUS St. Michael Simulation Center CHRISTUS HEALTH SERVICE CENTER”

“FORM 990, PART III, LINE 4D COMMUNITY SERVICES - POOR AND UNDERSERVED ROOTED IN OUR MISSION AND TRADITION, THE FOUNDERS AND SPONSORS OF CHRISTUS HEALTH AND THOSE WHO CO-MINISTER WITH THEM SEEK NEW AND INNOVATIVE WAYS OF DELIVERING QUALITY HEALTH CARE THAT IS BOTH AFFORDABLE AND ACCESSIBLE TO ALL. TODAY, MORE THAN EVER, WE MUST AIM TO IMPROVE THE TOTAL HEALTH STATUS OF THE COMMUNITY THROUGH PROGRAMS THAT PLACE OUR SERVICES WHERE THEY ARE NEEDED MOST, WITH SPECIAL ATTENTION AND PREFERENCE GIVEN TO PROGRAMS THAT SUPPORT AND BENEFIT THE HEALTH AND WELFARE OF THE POOR AND UNDERSERVED. COMMUNITY SERVICES FOR THE POOR AND UNDERSERVED REPRESENT THE UNPAID COST OF SERVICES PROVIDED FOR WHICH A PATIENT IS NOT BILLED, OR FOR WHICH A FEE HAS BEEN ASSESSED THAT RECOVERS ONLY A PORTION OF THE COST OF THE RENDERED SERVICE. THIS CATEGORY INCLUDES INITIATIVES THAT REACH OUT TO THOSE IN NEED THROUGH COMMUNITY HEALTH AND SOCIAL PROGRAMS. THESE PROGRAMS SEEK JUSTICE FOR THE VULNERABLE AND WORK TO BRING ABOUT CHANGES IN OUR POLITICAL AND ECONOMIC SYSTEMS. THE PROGRAMS COVER A BROAD SPECTRUM OF SERVICES FROM COMMUNITY CLINICS TO IMMUNIZATIONS FOR CHILDREN AND SENIORS, MEALS ON WHEELS, TRANSPORTATION SERVICES, HOME REPAIR PROJECTS AND A VARIETY OF OTHER SOCIAL SERVICES. SOME EXAMPLES OF CHRISTUS HEALTH COMMUNITY BENEFITS ACCOUNTED FOR UNDER COMMUNITY SERVICES FOR THE POOR AND UNDERSERVED INCLUDE THE CHRISTUS COMMUNITY DIRECT INVESTMENT PROGRAM (CDI) AND THE CHRISTUS FUND. THE CHRISTUS BOARD OF DIRECTORS APPROVED THE FUNDING OF A CDI LOAN PROGRAM TO ENSURE THAT THE WORK OF SOCIAL ACCOUNTABILITY AND MORAL AND ETHICAL STEWARDSHIP CONTINUES IN SPITE OF CHALLENGING FISCAL CONDITIONS FACED BY LOCAL OPERATING ENTITIES. THE PURPOSE OF THE CDI PROGRAM IS TO SUPPORT COMMUNITY-DRIVEN INITIATIVES PRIMARILY FOR AFFORDABLE HOUSING AND ECONOMIC DEVELOPMENT BY PROVIDING FINANCING AT BELOW-MARKET INTEREST RATES TO NOT-FOR-PROFIT ORGANIZATIONS AT TERMS NOT EXCEEDING MORE THAN FIVE YEARS. THE INCOME THAT WOULD HAVE BEEN EARNED AT THE MARKET RATE LESS OUR LOAN RATE (FOREGONE INCOME) IS CONSIDERED A COMMUNITY BENEFIT FOR REPORTING PURPOSES. THE TOTAL FOREGONE INTEREST REPORTED AS COMMUNITY BENEFIT FOR FY2016 WAS $0. THE COST OF THESE INVESTMENTS IS NOT INCLUDED IN THE PROGRAM SERVICE EXPENSES. THESE LOANS ARE PROVIDED TO OTHER NON-PROFIT ORGANIZATIONS. AS OF JUNE 30, 2016, THE OUTSTANDING LOAN BALANCES WERE IN THE FOLLOWING REGIONS: OUTSIDE THE CHRISTUS HEALTH SERVICE AREAS: $39,999.96 IN CHRISTUS HEALTH GULF COAST REGION: $2,383.43 IN CHRISTUS HEALTH NORTHERN LOUISIANA REGION: $12,893.12 IN CHRISTUS SANTA ROSA HEALTH CARE CORPORATION REGION: $3,572.64 IN CHRISTUS HEALTH SOUTHEAST TEXAS REGION: $1,389.76 IN ST. VINCENT HOSPITAL (NEW MEXICO REGION): $25,815.77 TOTAL CDI LOANS OUTSTANDING AS OF JUNE 30, 2016: $86,054.68 CHRISTUS HEALTH ESTABLISHED THE CHRISTUS FUND TO PROVIDE RESOURCES TO NOT-FOR-PROFIT AGENCIES AND GROUPS WHOSE VISION, MISSION AND GOALS ARE CONSISTENT WITH CHRISTUS HEALTH'S MISSION, VALUES AND PHILOSOPHY OF A HEALTHY COMMUNITY. WE BELIEVE THAT BY WORKING TOGETHER, WE CAN MAKE A PROFOUND DIFFERENCE IN THE QUALITY OF PEOPLES' LIVES AND CREATE SUSTAINABLE HEALTH IMPROVEMENTS IN OUR COMMUNITIES. DURING FY 2016, GRANT FUNDS WERE DISTRIBUTED TO NON-PROFIT AGENCIES IN THE FOLLOWING REGIONS: IN Christus Health: $74,735 IN Christus Health Southwestern Louisiana Region: $3,000 IN Christus Health Ark-la-Tex Region: $41,000 IN CHRISTUS HEALTH NORTHERN LOUISIANA REGION: $103,722 IN CHRISTUS SANTA ROSA HEALTH CARE CORPORATION REGION: $263,550 IN CHRISTUS HEALTH SOUTHEAST TEXAS REGION: $226,980 IN CHRISTUS SPOHN HEALTH SYSTEM CORPORATION REGION: $48,725 IN ST. VINCENT HOSPITAL (NEW MEXICO REGION): $285,475 In Sponsor Related: $158,580 TOTAL CHRISTUS FUND $1,205,767”

“FORM 990, PART VI, LINE 2 Officers Ernie Sadau and Randy Safady, and Key Employees John Gillean, MD and Eugene Woods have a business relationship as each served as a director on the board of Emerald Assurance Cayman, Ltd.”

“Form 990, part vi, line 6 christus health has five (5) corporate members, consisting of two sisters appointed by the congregation of the sisters of charity of the incarnate word, houston, tx, and two sisters appointed by the congregation of the sisters of charity of the incarnate word, san antonio, and one sister appointed by the sisters of the holy family of nazareth. Together those five sisters comprise the corporate members and collectively they exercise the powers reserved to the members.”

“FORM 990, PART VI, LINE 7A THE MEMBERS OF CHRISTUS HEALTH INCLUDE TWO SISTERS OF EACH OF THE FOUNDING SPONSORING CORPORATIONS, CONGREGATION OF THE SISTERS OF CHARITY OF THE INCARNATE WORD SAN ANTONIO, CONGREGATION OF THE SISTERS OF CHARITY OF INCARNATE WORD HOUSTON, and ONE SISTER OF THE Sisters of the Holy Family of Nazareth. THE MEMBERS HOLD THE AUTHORITY TO APPOINT AND REMOVE, WITH OR WITHOUT CAUSE, THE DIRECTORS OF THE CORPORATION (OTHER THAN THE FOUNDING SPONSORING CONGREGATION DIRECTORS), WITH OR WITHOUT PRIOR ACTION OR RECOMMENDATION OF THE BOARD OF DIRECTORS OR THE NOMINATING COMMITTEE OF THE CORPORATION.”

“Form 990, part vi, line 7b the members hold the authority to: approve any affiliation or transaction the result of which will be to add a sponsoring congregation, with or without prior action or recommendation of the board of directors of the corporation; to approve any affiliation or transaction the result of which will be to add an other-than-catholic affiliated entity to the system, with or without prior action or recommendation of the board of directors of the corporation; to adopt, approve and interpret the philosophy, mission and vision of the corporation, as well as any changes thereto, with or without prior action or recommendation of the board of directors of the corporation; to adopt and approve any amendments, modifications or restatements of the articles of incorporation or bylaws of corporation, with or without prior action or recommendation of the board of directors of the corporation; to appoint and remove, with or without cause, the chairperson of the board of directors of the corporation; to appoint and remove, with or without cause, the president of the corporation after consultation with the board of directors of the corporation; to approve the sale, lease, mortgage, transfer or encumbrance of real property of the corporation or any system participant when the amount involved is in excess of a threshold dollar amount as required by canon law, subject to any required canonical approval of the organizations canonically accountable under the roman catholic church for such real property, with or without prior action or recommendation of the board of directors of the corporation; to approve the threshold aggregate amount of debt to be incurred by the system and any incurrence of debt the effect of which would be to exceed such threshold aggregate amount, with or without prior actions or recommendation of the board of directors of the corporation; to approve any merger, consolidation, acquisition, liquidation or dissolution of the corporation, with or without prior action or recommendation of the board of directors of the corporation; to approve any merger, consolidation, acquisition, liquidation or dissolution of any system participant that owns designated ministry property of the corporation, with or without prior action or recommendation of the board of directors of the corporation; and to approve any course of action proposed by a system participant, with or without prior action or recommendation of the board of directors of the corporation, the effect of which would be to change either (a) the fundamental use of designated ministry property or (b) the type of services provided in connection with designated ministry property.”

“Form 990, part vi, line 11b the form 990 is prepared and reviewed by the organization's external independent accountants. The christus health accounting department works with an external accounting firm in preparation and review of the form 990. The filing organization's cfo, or other designee, reviews the form 990. The final form 990 that will be filed with the irs is posted to a secure internet portal for all members of the board of directors to view. Review of the final form 990 occurs prior to filing with the irs in the spring of 2017 via a web portal polling tool by the christus organization's board, based on a set of suggested review processes developed by christus health.”

“FORM 990, PART VI, LINE 12C A conflict of interest questionnaire was distributed to the organization's officers and key employees during the fiscal year. The organization's Human Resources department thoroughly reviews all completed and executed conflict of interest questionnaire forms to ensure accuracy and that no potential or identified conflict is disclosed or exists. A conflict of interest questionnaire was distributed to the organization's officers, key employees and directors during the next fiscal year by the organization's Corporate Secretary. The organization's board of directors is responsible for enforcement of the conflict of interest policy of the organization.”

“Form 990, part vi, lines 15a & 15b the executive compensation committee of christus health determines the compensation of the ceo (or executive director, as applicable), officers and key employees of christus health and certain other officers and key employees of related organizations. The executive compensation committee is composed of individuals who have no conflict of interest with the compensation arrangements at hand. Christus health ceo's compensation is subject to approval by the christus health board, after discussion by the executive compensation committee. The executive compensation committee of the christus health board selects an independent external firm to perform an independent compensation review, to ensure that all compensation is reasonable and comparable to other similarly situated organizations, for similarly qualified persons in functionally comparable positions, and to provide supporting information of compensation decisions. On an annual basis the external consultant: 1. Completes a review of the compensation and benefits of the ceo and provides a written report, and appears in person with the committee to address the annual compensation review and any decisions related to such compensation for the ceo. The consultant also provides all of the comparable market data to support recommendations and decisions. 2. Develops the merit increase recommendations for all designated system executives based on market comparability. 3. Recommends the changes in the compensation structure (grades) based on the market changes. 4. Completes a review and evaluation of newly created positions to recommend a grade placement to the committee for its discussion and approval. On a bi-annual basis, the external consultant completes a detailed review of all other designated system executives' compensation and benefits. This group includes all top management officials, other officers and key leaders of the organization. The review includes recommendations to the committee on any changes necessary in either specific compensation or compensation structure to ensure market competitiveness, reasonableness and internal equity. Upon recommendations from the independent external firm, the executive compensation committee makes final compensation decisions. Additionally, the executive compensation committee reviews all compensation payments for excess benefit transactions. The discussion and decisions of the committee are documented and formalized in the committee minutes and maintained on record.”

“Form 990, part vi, line 18 christus health and most of its affiliated entities do not have forms 1023 because of their inclusion in the irs group ruling with the united states conference of catholic bishops, which covers the organization listed in the annual official catholic directory. Christus health's website displays the irs group ruling and relevant annual official catholic directory pages for the organizations related to christus health. Forms 990 and 990-t are made available upon request.”

“Form 990, part vi, question 19 the consolidated audited financial statements of christus health are made available to the public via the christus health website. The organization's governing documents and conflict of interest policy are not made available to the public. Functional expense, line 8, pension plan contributions form 990, part ix reported in pension plan contributions is the pension expense incurred by the filing organization netted with the pension expense allocated to the filing organization's subsidiaries. Pension expense allocated exceeded the pension expense incurred for fiscal year ending june 30, 2016. Other changes in net assets or fund balances form 990, part xi, line 9 incr. In equity from acquisition of interest in trinity mother frances $474,540,457 policy change - accum unrealized gains $32,536,471 pension funding $10,890,050 pension liability/expense ($7,134,438) equity adj consolidated subs ($47,220,923) transfer of restricted donations ($59,441,668) other ($71,044,783) sponsorship fees ($72,642,333) ------------- total $260,482,833”

“Description:svc fees-pharmacy,physicians total fees:93751363”

“Description:repair & maintenance services total fees:83252014”

“Description:marketing & consulting svcs total fees:36033666”

“Description:capitation expenses total fees:17510648”

“Description:fund administration costs total fees:8907522”

“Description:other fees total fees:2943684”

“Description:intercompany overhead alloc. Total fees:2518205”

“Description:line of credit fees total fees:1237319”

“Description:purchased services total fees:1511089”

“Description:interco. Prof. & system fees total fees:834828”

“Description:collection fees total fees:8224”

“Description:cbre fees total fees:1278”