Civic Intelligence

Highmark Health Group

990 • Fiscal year 2017 • EIN 82-1406555

Jan 01, 2017 to Dec 31, 2017 • Filed on Nov 08, 2018

120 Fifth AvenuePittsburgh, PA 15222

(412) 544-6668

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

85th percentile

0.67x

Higher debt load relative to assets than 85% of similar nonprofits.

2017 filings • 501(c)3 • $1B+ nonprofits • Source year 2017

Liabilities / Revenue

39th percentile

0.59x

Higher debt load relative to revenue than 39% of similar nonprofits.

2017 filings • 501(c)3 • $1B+ nonprofits • Source year 2017

Net Margin

30th percentile

3.1%

Higher net margin than 30% of similar nonprofits.

2017 filings • 501(c)3 • $1B+ nonprofits • Source year 2017

Top Officer Pay

55th percentile

$1,956,480

Higher top officer pay than 55% of similar nonprofits.

Top officer pay equals 0.1% of source-year revenue.

2017 filings • 501(c)3 • $1B+ nonprofits • Source year 2017

Asset Growth

88th percentile

19%

Faster asset growth than 88% of similar nonprofits.

2017 filings • 501(c)3 • $1B+ nonprofits • Annualized from 2016 to 2017

Revenue Growth

53rd percentile

7.9%

Faster revenue growth than 53% of similar nonprofits.

2017 filings • 501(c)3 • $1B+ nonprofits • Annualized from 2016 to 2017

Assets

Up

$2,936,994,088

Up $460,551,607 (+19%) from 2016

Net Assets

Up

$959,694,804

Up $700,819,280 (+271%) from 2016

Liabilities

Down

$1,977,299,284

Down $240,267,673 (-11%) from 2016

Revenue

Up

$3,364,229,432

Up $246,198,026 (+7.9%) from 2016

Expenses

Up

$3,260,772,727

Up $161,243,634 (+5.2%) from 2016

Net Income

Up

$103,456,705

Up $84,954,392 (+459%) from 2016

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$6.0B$4.0B$2.0B$0Assets 2015: $2,499,453,772Liabilities 2015: $2,279,977,484Net Assets 2015: $219,476,2882015Assets 2016: $2,476,442,481Liabilities 2016: $2,217,566,957Net Assets 2016: $258,875,5242016Assets 2017: $2,936,994,088Liabilities 2017: $1,977,299,284Net Assets 2017: $959,694,8042017Assets 2018: $3,149,634,218Liabilities 2018: $1,973,175,454Net Assets 2018: $1,176,458,7642018Assets 2019: $3,792,772,543Liabilities 2019: $2,189,461,024Net Assets 2019: $1,603,311,5192019Assets 2020: $4,274,556,698Liabilities 2020: $2,512,538,677Net Assets 2020: $1,762,018,0212020Assets 2021: $4,296,985,139Liabilities 2021: $2,300,217,175Net Assets 2021: $1,996,767,9642021Assets 2022: $4,232,873,367Liabilities 2022: $2,308,818,187Net Assets 2022: $1,924,055,1802022Assets 2023: $4,334,308,148Liabilities 2023: $2,258,752,324Net Assets 2023: $2,075,555,8242023Assets 2024: $4,469,412,095Liabilities 2024: $2,268,972,694Net Assets 2024: $2,200,439,4012024

Highlighted filing

2017

Assets$2,936,994,088
Liabilities$1,977,299,284
Net Assets$959,694,804

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$8.0B$6.0B$4.0B$2.0B$0-$2.0BRevenue 2015: $2,686,418,339Expenses 2015: $2,630,056,304Net Income 2015: $56,362,0352015Revenue 2016: $3,118,031,406Expenses 2016: $3,099,529,093Net Income 2016: $18,502,3132016Revenue 2017: $3,364,229,432Expenses 2017: $3,260,772,727Net Income 2017: $103,456,7052017Revenue 2018: $3,668,217,017Expenses 2018: $3,596,635,859Net Income 2018: $71,581,1582018Revenue 2019: $3,934,196,713Expenses 2019: $3,849,234,820Net Income 2019: $84,961,8932019Revenue 2020: $4,005,225,290Expenses 2020: $4,120,225,028Net Income 2020: -$114,999,7382020Revenue 2021: $4,793,642,986Expenses 2021: $4,586,733,862Net Income 2021: $206,909,1242021Revenue 2022: $5,213,963,153Expenses 2022: $5,031,657,157Net Income 2022: $182,305,9962022Revenue 2023: $5,620,337,593Expenses 2023: $5,512,040,788Net Income 2023: $108,296,8052023Revenue 2024: $6,059,666,088Expenses 2024: $5,884,153,492Net Income 2024: $175,512,5962024

Highlighted filing

2017

Revenue$3,364,229,432
Expenses$3,260,772,727
Net Income$103,456,705
Jump To
Filing Snapshot
Filing Period
Jan 1, 2017 to Dec 31, 2017
Signed
Nov 8, 2018
Return Version
2017v2.3
Gross Receipts
$4,366,451,749
Mission and Program Overview

Mission

Highmark health is an interdependent system designed to deliver high quality, accessible, understandable and affordable experiences, outcomes and solutions for our customers.

Promote health & wellness in our communities by providing safe, compassionate, affordable health care to all who seek it.

Balance Sheet Detail
LineBeginningEndChange
Assets
Land, Buildings, and Equipment, Net$886,533,705$977,536,795▲ $91,003,090
Savings and Temporary Cash Investments$191,287,152$396,611,306▲ $205,324,154
Investments in Publicly Traded Securities$445,880,889$386,148,550▼ $59,732,339
Accounts Receivable$288,353,381$306,552,024▲ $18,198,643
Intangible Assets$110,663,222$126,342,747▲ $15,679,525
Inventories for Sale or Use$40,434,090$44,940,204▲ $4,506,114
Prepaid Expenses and Deferred Charges$22,906,063$21,073,948▼ $1,832,115
Pledges and Grants Receivable$3,501,189$7,928,855▲ $4,427,666
Other Notes and Loans Receivable, Net$3,185,000$3,185,000→ $0
Cash and Non-Interest-Bearing Accounts$626,980$522,912▼ $104,068
Investments Other Securities$151,526$151,526→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Program Related$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$2,476,442,481$2,936,994,088▲ $460,551,607
Other Assets Total$482,919,284$666,000,221▲ $183,080,937
Liabilities
Tax Exempt Bond Liabilities$180,667,875$1,000,000,000▲ $819,332,125
Other Liabilities$943,265,836$529,253,984▼ $414,011,852
Accounts Payable and Accrued Expenses$315,317,720$327,521,043▲ $12,203,323
Deferred Revenue$60,879,180$64,883,746▲ $4,004,566
Mortgage Notes Payable Secured by Investment Property$717,436,346$55,640,511▼ $661,795,835
Grants Payable$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Escrow Account Liability$0$0→ $0
Total Liabilities$2,217,566,957$1,977,299,284▼ $240,267,673
Net Assets / Fund Balance
Unrestricted Net Assets$84,678,533$643,654,235▲ $558,975,702
Permanently Rstr Net Assets$146,832,679$289,436,239▲ $142,603,560
Temporarily Rstr Net Assets$27,364,312$26,604,330▼ $759,982
Total Net Assets Fund Balance$258,875,524$959,694,804▲ $700,819,280
Total Liabilities and Net Assets / Fund Balance$2,476,442,481$2,936,994,088▲ $460,551,607

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$473,455,013$152,057,524$625,512,537
Equipment$302,569,234$308,090,140$610,659,374
Other Land Buildings$143,911,776$24,116,583$168,028,359
Land$42,684,913-$42,684,913
Leasehold Improvements$14,915,859$10,766,307$25,682,166
Other Assets Org$146,667--

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2017$314,504,019$2,378,887▲ $36,108,383$13,107,770$338,653,894
2016$308,814,600$6,086,053▲ $15,032,444$14,618,247$314,504,019
2015$323,361,457$11,096,627▼ $9,567,841$16,129,681$308,041,866
2014$326,684,716$9,767,463▲ $18,431,806$30,720,168$323,361,457
2013$340,575,761$10,886,147▼ $8,533,746$15,795,656$326,684,716
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Edward Westrick MDPhysicianFT$1,779,727$33,841$1,813,568
Gregory Altman MDPhysicianFT$1,757,670$36,245$1,793,915
Daniel Altman MDPhysicianFT$1,737,187$28,239$1,765,426
Cynthia HundorfeanDirector & PresidentFT$934,212$822,158$1,756,370
Donald Whiting MDDirectorFT$1,583,101$133,677$1,716,778
Scott WhalenDirector & PresidentFT$262,271$1,172,351$1,434,622
Tony Farah MDDirectorFT$463,769$958,567$1,422,336
Nicholas Sotereanos MDPhysicianFT$1,363,028$46,020$1,409,048
robert moraca mdphysicianFT$995,836$270,435$1,266,271
Patrick Demeo MDPhysicianFT$1,175,722$39,729$1,215,451
Jeffrey CrudeleDirector & TreasurerFT$603,712$604,425$1,208,137
David Parda MDDirectorFT$999,430$44,862$1,044,292
Venkatraman Srinivasan MDTrusteeFT$916,080$30,994$947,074
David GoldbergDirectorFT$512,072$433,273$945,345
G Scott Long MDDirector & PresidentFT$899,492$25,814$925,306
Ngoc Thai MDDepartment ChairFT$876,355$37,628$913,983
Jeffrey Cohen MDDirector & PresidentFT$846,472$43,768$890,240
James BenedictDirectorFT$652,813$217,943$870,756
Brian Parker MDDirectorFT$474,062$386,491$860,553
Robert Lupo MDDirectorFT$553,351$299,037$852,388
Ross Peterson MDDirectorFT$669,095$169,843$838,938
Parminder Sharma MDDirectorFT$785,541$41,005$826,546
Jacqueline BauerDirector & SecretaryFT$395,941$375,995$771,936
Jeffrey McGovernDirectorFT$544,951$210,845$755,796
George J Magovern Jr MDPhysicianFT$676,207$59,680$735,887
John PaulFormer Director & President-$720,669$720,669$720,669
Robert WhiteChief Medical Info OfficerFT$479,045$221,822$700,867
Allan Klapper MDPhysicianFT$657,404$35,847$693,251
William GoldfarbFormer Director-$61,611$628,544$690,155
John Balacko MdDirectorFT$649,656$34,221$683,877
Kenyokee CrowellSr. Vice PresidentFT$456,763$225,937$682,700
Susan Manzi MDPhysicianFT$646,433$22,878$669,311
Beth Casagranda MDPhysicianFT$605,434$31,291$636,725
Vincent McVittieDirectorFT$194,207$405,164$599,371
Mark Rubino MDDirector & PresidentFT$557,354$37,018$594,372
Anthony Lupetin MDPhysicianFT$556,739$31,413$588,152
Jan Silverman MDPhysicianFT$534,053$51,865$585,918
Michael Culig MDDirectorFT$530,344$46,213$576,557
Louise UrbanDirector & PresidentFT$430,465$136,093$566,558
Ronald AndroDirector & PresidentFT$499,825$43,355$543,180
Claire ZangerleChief Nursing OfficerFT$402,399$119,720$522,119
Richard ThompsonVice PresidentFT$338,475$160,777$499,252
Brian Jones MDDirectorFT$364,530$111,591$476,121
Patrick Recio DODirectorFT$416,469$26,472$442,941
Salam Shameen MDDirectorFT$422,788$7,096$429,884
Dmitriy Mnuskin MDDirectorFT$379,877$40,594$420,471
James Amsterdam MDDirectorFT$392,627$26,608$419,235
Brian Johnson MDPhysicianFT$385,281$29,965$415,246
Daniel R Casper MDDirectorFT$361,647$38,132$399,779
Donald JaffeeChief Financial OfficerFT$350,694$44,134$394,828
John Lawrence MDPhysicianFT$363,846$22,118$385,964
Keith LeJeuneDirector & Vice PresidentFT$289,059$89,890$378,949
Marti StrandChief Rev Cycle OfficerFT$294,745$59,189$353,934
Thomas Corkery DODirectorFT$293,164$45,268$338,432
James RohrbaughDirector & TreasurerFT$316,183$19,899$336,082
Jennifer Lewis MDDirectorFT$294,332$31,479$325,811
Chris Serafini DODirectorFT$283,862$40,238$324,100
Margaret DicuccioCOO & CNOFT$297,958$23,022$320,980
William EnglertDirector & PresidentFT$294,418$21,058$315,476
Jeffrey Kim MDDirectorFT$223,197$79,860$303,057
Jason ZajacFormer Trustee & President-$18,750$282,149$300,899
Suzanne Labriola MDPhysicianFT$275,059$17,460$292,519
Alfred MansfieldDirector & Treasurer (Thru 7/5/17)FT$244,697$43,955$288,652
Maureen ChadwickAssistant SecretaryFT$224,213$64,019$288,232
David AlexanderSr. Vice PresidentFT$161,959$117,797$279,756
Paul Gausman DODirectorFT$224,501$52,647$277,148
Mark Leone DODirector & TreasurerFT$203,027$68,825$271,852
Jacqueline DaileyFormer CIO-$252,960$254,664$254,664
Carol BucciDirectorFT$218,573$34,890$253,463
Scott HankinsonDirectorFT$185,503$64,749$250,252
Thomas MurphyDirectorFT$204,925$24,098$229,023
Susan Moore MDDirectorFT$189,936$26,027$215,963
Chong Park MDChief Medical OfficerPT$199,345$4,995$204,340
Allison QuickDirector & PresidentFT$143,192$57,665$200,857
Christopher Clark DODirector & PresidentPT$184,106$12,629$196,735
Donald McNaryDirectorFT$175,002$16,795$191,797
David Stapor MDDirectorPT$164,982$24,254$189,236
Maggie Biebel MDDirector & SecretaryFT$181,985$6,753$188,738
Paul Reilly MDDirectorFT$156,298$29,109$185,407
Mark NussbaumDirector & Vice PresidentFT$130,809$45,746$176,555
Luis RiveraDirectorFT$83,860$86,053$169,913
Jason RoebackDirectorFT$143,069$18,927$161,996
Dawn Karns DODirectorFT$155,419$600$156,019
Tina GowenDirectorFT$136,816$6,326$143,142
David Blandino MDBoard ChairPT-$139,293$139,293
Joseph C GuyauxDirectorPT-$128,624$128,624
Rand LevisAssistant TreasurerFT$116,693$3,665$120,358
Susan BarrettAssistant SecretaryFT$97,000$17,967$114,967
Victor RoqueDirectorPT-$112,892$112,892
David Michael MatterDirectorPT-$112,792$112,792
Jane SarraFormer Director & President-$98,524$98,524$98,524
Ambaram Chauhan MDDirectorPT$91,553$2,939$94,492
Timothy LochFormer Director-$21,289$73,193$94,482
David MaloneDirectorPT-$82,524$82,524
Madhusudan Menon MDDirectorPT$38,252$15,002$53,254
David Celko MDDirectorFT$45,672-$45,672

Board Members and Trustees

NameTitle
Edward LittleBoard Chair
Gregory HarbaughBoard Chair
Joseph MacerelliBoard Chair
Mark WebbBoard Chair
Robin BergstromBoard Chair
Russell LivingstonBoard Chair
Sandra UsherBoard Chair
Edward MarascoDirector & Vice Chair
Jeffrey SzumigaleDirector & Vice Chair
John Hamels PhDDirector & Vice Chair
Alex Selioutski MDDirector
Barbara VanKirkDirector
Basil M CoxDirector
Carole PankasDirector
Charles LaBelleDirector
Charles ModispacherDirector
Chris ScottDirector
Daniel OnoratoDirector
David Lerberg MDDirector
Doris Carson WilliamsDirector
Helen BaranDirector
James GrahamDirector
Jane Love MDDirector
Jason RossDirector
Jillian RoacheDirector
John EchementDirector
John FinneganDirector
Karen HanlonDirector
Kathryn BurnsDirector
LP GuptaDirector
LaDonna Fuge MDDirector
Lauren McAndrewsDirector
Mark HagenDirector
Marne RocheDirector
Michael AlterioDirector
Michael RedlawskDirector
Natalie Dwyer HallerDirector
Norma CummingsDirector
Pamela LapczynskiDirector
R Steven JonesDirector
Richard S BartekDirector
Richard TalaricoDirector
Robert CraneDirector
Roberta PattersonDirector
Russell ElwellDirector
Stewart BarmenDirector
Terrence CavanaughDirector
Theodore NeighborsDirector
Thomas BerkhouseDirector
Thomas TarpleyDirector
Thomas VankirkDirector
Wendy O'BrienDirector
William RichardsonDirector
William Thomeier MDDirector
Diana HoltDirector & Secretary
Martha SmithDirector & Secretary (Thru 5/24/17)
Sandra BrownDirector & Secretary (Thru 9/27/17)
Tracey BennettDirector & Treasurer
James HamiltonDirector (thru 12/31/2017)
Brian JacobTrustee
Curt MarinoTrustee
Gene BeckerTrustee
Kevin SniderTrustee
Marilyn PesciTrustee
Robert PacekTrustee

Highest Paid Contractors

ContractorServicesLocationCompensation
MBM Contracting IncConstruction4999 Old Clairton Road, Pittsburgh, PA 15236$13,557,965
StaffAssist Workforce Mgmt LLCstaffing62373 Collections Center Drive, Chicago, IL 60693$13,372,025
Metro Aviation IncTransportationPO Box 7008, Shreveport, LA 71137$7,600,377
Associated Clinical LaboratoriesMedical Lab services15832 Collection Center Drive, Chicago, IL 60693$7,539,483
McKamish Chesapeake IncConstruction50 55th Street, Pittsburgh, PA 15201$7,093,581
Revenue and Support

Revenue Composition

Contributions and Grants
$18,356,919
Program Service Revenue
$3,165,504,890
Investment Income
$79,833,992
Other Revenue
$100,533,631
All Other Contributions
$14,993,631
Change in Net Assets
$103,456,705

Noncash Contribution Practices

Property subject to holding requirements
No
Reviewed unusual noncash gifts
Yes
Third parties used for noncash contributions
No

Noncash Contributions

Contribution TypeContribution CountReported AmountValuation Method
Drugs and Medical Supplies2$348,369Fair Market Value (FMV)
Securities Publicly Traded2$276,161Fair Market Value (FMV)
Cars and Other Vehicles1$28,220Fair Market Value (FMV)
Total Noncash Contributions5$652,750-
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$1,721,785,541
Salaries, Compensation, and Employee Benefits$1,536,884,008
Grants and Similar Amounts Paid$2,103,178
Total Fundraising Expense$946,560
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$1,188,481,868$101,644,621$543,777$1,290,670,266
Fees for Services Other$187,623,333$63,335,548$102,533$251,061,414
Occupancy$141,068,626$12,470,130-$153,538,756
All Other Expenses$135,725,950$12,380,837$23,832$148,130,619
Depreciation Depletion$111,563,565$15,381,026-$126,944,591
Other Employee Benefits$105,681,660$10,766,421$5,600$116,453,681
Payroll Taxes$72,686,690$6,816,012$35,786$79,538,488
Other Expenses$49,586,483$1,395,789-$50,982,272
Information Technology$45,004,487$4,718,352$510$49,723,349
Interest$44,056,781$4,216,135-$48,272,916
Current Officers, Directors, Trustees, and Key Employees$36,391,977$2,912,105$217,103$39,521,185
Insurance$28,834,922$2,105,270-$30,940,192
Office Expenses$27,191,812$3,010,566$15,548$30,217,926
Pension Plan Contributions$9,150,622$827,020-$9,977,642
Travel$3,640,599$386,983$547$4,028,129
Conferences and Meetings$3,431,167$387,082$1,019$3,819,268
Grants to Domestic Orgs$2,059,883--$2,059,883
Fees for Services Accounting$29,073$1,965,193-$1,994,266
Fees for Service Investment Mgmnt Fees$1,055,587$546,495-$1,602,082
Fees for Services Legal$276,607$916,709-$1,193,316
Advertising$686,669$109,727-$796,396
Comp Disqual Persons$665,520$56,921$305$722,746
Fees for Services Lobbying-$174,277-$174,277
Grants to Domestic Individuals$43,295--$43,295
Total Functional Expenses$2,936,837,278$322,988,889$946,560$3,260,772,727
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
Saint Vincent Health CenterErie, PA501(c)(3)Program Support$695,714
Bike SharePittsburgh, PA501(c)(3)Program Support$250,000
The Open Door IncPittsburgh, PA501(c)(3)Program Support$110,000
Carlow UniversityPittsburgh, PA501(c)(3)Program Support$100,000
City of PittsburghPittsburgh, PAGovtProgram Support$85,000
JdrfPittsburgh, PA501(c)(3)Program Support$75,000
American Heart AssociationPittsburgh, PA501(c)(3)Program Support$73,750
Prevention Point PittsburghPittsburgh, PA501(c)(3)Program Support$55,000
Westfield Memorial Hospital FoundationWestfield, NY501(c)(3)Program Support$50,000
Alle-Kiski Medical CenterNatrona HGHTS, PA501(c)(3)Program Support$46,000
Pittsburgh Post-GazettePittsburgh, PAN/aProgram Support$30,000
Carnegie Mellon UniversityPittsburgh, PA501(c)(3)Program Support$25,000
Center that CARESPittsburgh, PA501(c)(3)Program Support$25,000
West Penn HospitalPittsburgh, PA501(c)(3)Program Support$25,000
American Cancer Societypittsburgh, PA501(c)(3)Program Support$18,500
Ryan White Coalition for 340B Drug AccessWashington, DC501(c)(4)Program Support$18,000
American Diabetes AssociationPittsburgh, PA501(c)(3)Program Support$17,500
Community Liver AlliancePittsburgh, PA501(c)(3)Program Support$17,500
Monroeville Area Chamber of CommerceMonroeville, PA501(c)(6)Program Support$17,500
March of Dimes FoundationPittsburgh, PA501(c)(3)Program Support$16,500
Pittsburgh North Reg Chamber of CommerceWexford, PA501(c)(6)Program Support$15,000
Allegheny County Medical Society FoundationPittsburgh, PA501(c)(3)Program Support$13,500
Susan G Komen PittsburghPittsburgh, PA501(c)(3)Program Support$12,500
ALS Association Western PA ChapterPittsburgh, PA501(c)(3)Program Support$10,000
African American Chamber of Comm Fdn Western PAPittsburgh, PA501(c)(3)Program Support$10,000
American Lung Association of the Mid AtlanticCamp Hill, PA501(c)(3)Program Support$10,000
Arthritis FoundationPittsburgh, PA501(c)(3)Program Support$10,000
Bloomfield Development CorporationPittsburgh, PA501(c)(3)Program Support$10,000
Bloomfield Little Italy DaysPittsburgh, PAN/aProgram Support$10,000
Dr Gertrude A Barber FoundationErie, PA501(c)(3)Program Support$10,000
Erie Western Pennsylvania Port AuthorityErie, PAGovtProgram Support$10,000
Jewish Healthcare FoundationPittsburgh, PA501(c)(3)Program Support$10,000
Pittsburgh Trust for Cultural ResourcesPittsburgh, PA501(c)(3)Program Support$10,000
Wqed PittsburghPittsburgh, PA501(c)(3)Program Support$10,000
WQLN Public MediaErie, PA501(c)(3)Program Support$9,000
The Alexis Joy D'Achille Foundation for PostpartumGibsonia, PA501(c)(3)Program Support$8,500
North Side Chamber of CommercePittsburgh, PA501(c)(6)Program Support$7,600
A Glimmer of Hope FoundationWexford, PA501(c)(3)Program Support$7,500
Culture Arts Festivals and EventsErie, PA501(c)(3)Program Support$7,500
Extra Mile Education FoundationPittsburgh, PA501(c)(3)Program Support$7,500
National Ovarian Cancer Coalition - PittsPittsburgh, PA501(c)(3)Program Support$7,500
The Rotary Club of MonroevilleMonroeville, PA501(c)(3)Program Support$6,000
Pirates CharitiesPittsburgh, PA501(c)(3)Program Support$5,900
National Kidney Foundation of Western PennPittsburgh, PA501(c)(3)Program Support$5,260

International Summary

Offices
0
Employees
0
Spending
$11,383

International Compliance

Foreign grant records maintained
Yes
Activity in boycott countries
No
Foreign corporation ownership
No
Foreign partnership interest
No
Interest in foreign trust
No
Passive foreign investment company interest
No
Transfers to foreign corporations
No

International Activities

RegionActivityServicesOfficesEmployeesSpending
Europe (Including Iceland and Greenland)Grantmaking-00$11,383
Fundraising, Events, and Gaming
Fundraising activities
Yes
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Fundraising Gross Income$734,787
Fundraising Direct Expenses$653,052
Gaming Direct Expenses$0
Gaming Gross Income$0
Professional Fundraising Fees$0

Fundraising Events

EventGross ReceiptsGross RevenueDirect ExpensesNet Income
AHN Gala$1,549,350$191,440$0$191,440
Golf Events$507,455$99,551$22,904$76,647
Total Events$2,566,166$696,900$548,047$148,853
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
Yes
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
Katie FarahFamily of Board MemberEmploymentNo$542,532
Edward MarascoBoard MemberBusiness TransactionNo$497,399
Melissa Jorden DOFamily of Board MemberEmploymentNo$180,213
Kevin SniderBoard MemberBusiness TransactionNo$121,206

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Receivables from Disqualified Persons$0$0→ $0
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Pension Funding$341,676,432
Medical Malpractice Liability$148,744,742
Other Liabilities$38,832,810

Bond Issues

BondIssuerIssuedIssue PricePurpose
AAllegheny County Hospital Development Authority2017-12-27$1,000,000,000New constructions/refund prior iss

Bond Proceeds

BondTotal ProceedsSpentRetiredIssuance Costs
A$1,000,000,000$801,984,910$0$0

Bond Financing Compliance

No rebate due
No
Rebate not yet due
Yes
Form 8038-T filed
No
Gross proceeds invested
No
Gross proceeds invested in GIC
No
Exception to rebate
No
Corrective action procedures
No
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with family members
Yes
Business relationship with organization members
Yes
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
Yes
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
Yes
Management duties delegated
No
Filing and Contact Details

Filer

Filer Name
Highmark Health Group
EIN
82-1406555
In Care Of
% JEFF CRUDELE
Phone
4125446668
Address
120 Fifth Avenue, Pittsburgh, PA 15222

Signing Officer

Name
Karen L Hanlon
Title
Treasurer, EVP, CFO
Phone
4125446668
Signed
2018-11-08
Discuss with paid preparer
Yes

Organization Details

Principal Officer
David Holmberg
Voting Board Members
182
Independent Board Members
85
Employees
24,480
Volunteers
1,618

Preparer

Firm
Grant Thornton Llp
Address
171 N CLARK ST SUITE 200, CHICAGO, IL 60601
Preparer
Frank Giardini
Phone
3128560200
Supplemental Narrative

Additional Explanations

Introduction to Ahn

ALLEGHENY HEALTH NETWORK (AHN), BASED IN PITTSBURGH, PENNSYLVANIA, IS A TAX-EXEMPT, PATIENT-CENTERED AND PHYSICIAN-LED ACADEMIC HEALTHCARE SYSTEM THAT PROVIDES CHARITABLE CARE AND HIGH-QUALITY, COMPREHENSIVE HEALTH CARE SERVICES TO PATIENTS FROM WESTERN PENNSYLVANIA AND THE ADJACENT REGIONS OF OHIO, WEST VIRGINIA, NEW YORK AND MARYLAND. AHN COMPRISES EIGHT HOSPITALS AND MORE THAN 250 HEALTHCARE SITES, INCLUDING FOUR HEALTH + WELLNESS PAVILIONS, SURGICAL CENTERS AND OUTPATIENT CLINICS; A RESEARCH INSTITUTE; MORE THAN 2,800 EMPLOYED AND AFFILIATED PHYSICIANS; APPROXIMATELY 25,000 TOTAL EMPLOYEES; 2,000 VOLUNTEERS; A GROUP PURCHASING ORGANIZATION; AND A COMPLETE SPECTRUM OF HOME AND COMMUNITY BASED HEALTHCARE SERVICES. THE NETWORKS HOSPITALS INCLUDE ONE QUATERNARY ACADEMIC MEDICAL CENTER (ALLEGHENY GENERAL HOSPITAL IN PITTSBURGH) AND SEVEN TERTIARY/COMMUNITY HOSPITALS THAT PROVIDE A WIDE ARRAY OF GENERAL AND ADVANCED CLINICAL SERVICES (ALLEGHENY VALLEY HOSPITAL, NATRONA HEIGHTS, PA; CANONSBURG HOSPITAL, CANONSBURG, PA; FORBES HOSPITAL, MONROEVILLE, PA; JEFFERSON HOSPITAL, JEFFERSON HILLS, PA; SAINT VINCENT HOSPITAL, ERIE, PA; WEST PENN HOSPITAL, PITTSBURGH; AND WESTFIELD MEMORIAL HOSPITAL, WESTFIELD, NY.) AHN WAS ESTABLISHED IN 2013, BUT ITS MEMBER HOSPITALS SHARE LEGACIES OF CHARITABLE CARE THAT DATE BACK 170 YEARS (WEST PENN HOSPITAL WAS CHARTERED IN 1848). AHN WAS FORMED TO ACT AS THE PARENT COMPANY OF THE HOSPITALS OF THE WEST PENN ALLEGHENY HEALTH SYSTEM, INC. (WPAHS), AS WELL AS JEFFERSON HOSPITAL, and SAINT VINCENT HOSPITAL. HIGHMARK HEALTH (HH), IN TURN, SERVES AS THE ULTIMATE PARENT OF AHN AND ITS AFFILIATES. IN 2017, THE HOSPITALS AND CLINICS OF AHN TOGETHER ADMITTED NEARLY 90,000 PATIENTS, LOGGED NEARLY 300,000 EMERGENCY ROOM VISITS AND DELIVERED NEARLY 7,500 BABIES; AND ITS PHYSICIANS PERFORMED MORE THAN 100,000 SURGICAL PROCEDURES. ANCHORED BY NATIONALLY AND INTERNATIONALLY RECOGNIZED CLINICAL AND RESEARCH PROGRAMS IN THE AREAS OF BONE AND JOINT CARE, SPORTS MEDICINE, CARDIOVASCULAR DISEASE, NEUROSURGERY AND NEUROLOGY, WOMENS HEALTH, CANCER, EMERGENCY MEDICINE, BARIATRIC AND METABOLIC DISEASE, AHN PROVIDES A COMPLETE SPECTRUM OF ADVANCED DIAGNOSTIC, MEDICAL AND SURGICAL CARE ACROSS ALL MEDICAL SPECIALTIES, INCLUDING PRIMARY CARE, TRAUMA AND BURN CARE, GENERAL SURGERY, DIABETES, AUTOIMMUNE DISEASES, CRITICAL CARE, DIGESTIVE DISEASES, MENS HEALTH/UROLOGY, LUNG AND ESOPHAGEAL DISEASES AND REHABILITATION SERVICES. AHN ALSO PLAYS A PIVOTAL ROLE IN THE TRAINING OF FUTURE GENERATIONS OF HEALTHCARE PROFESSIONALS BY OFFERING FOUR DOZEN GRADUATE MEDICAL PROGRAMS, AND BY MAINTAINING AFFILIATIONS WITH THREE MEDICAL SCHOOLS AND TWO NURSING SCHOOLS. THE NETWORKS HOSPITALS SERVE AS CLINICAL CAMPUSES FOR THE MEDICAL SCHOOLS OF DREXEL UNIVERSITY, TEMPLE UNIVERSITY AND THE LAKE ERIE COLLEGE OF OSTEOPATHIC MEDICINE (LECOM). NEARLY 250 STUDENTS ARE ENROLLED EACH YEAR IN NURSING PROGRAMS AT THE WEST PENN HOSPITAL SCHOOL OF NURSING AND THE CITIZENS SCHOOL OF NURSING IN NATRONA HEIGHTS, AND ABOUT 450 MEDICAL RESIDENTS AND FELLOWS RECEIVE ADVANCED TRAINING ON STAFF AT AHN HOSPITALS. AHNS PLAN IS TO TRANSFORM THE CURRENT MODEL OF HEALTH CARE DELIVERY IN WESTERN PENNSYLVANIA BY ENCOURAGING HEALTH CARE PROVIDERS WITHIN AHN, WHETHER HOSPITALS OR PHYSICIANS, TO USE THE MOST COST-EFFECTIVE VENUE FOR CARE, ADHERE TO THE HIGHEST, EVIDENCE-BASED STANDARDS OF CARE, AND DELIVER SUPERIOR OUTCOMES BY REDUCING UNNECESSARY READMISSIONS AND HEALTHCARE ASSOCIATED COMPLICATIONS. PROVIDING COST-EFFICIENT, CONVENIENTLY ACCESSED CARE DELIVERS VALUE AND BENEFIT TO LOCAL COMMUNITIES, PARTNER HEALTH CARRIERS, AREA BUSINESSES, AND MOST OF ALL TO AHNS PATIENTS. THE GOAL OF AHN IS TO PROMOTE HEALTH AND WELLNESS IN OUR COMMUNITIES BY PROVIDING SAFE, COMPASSIONATE, AFFORDABLE HEALTH CARE TO ALL WHO SEEK IT, REGARDLESS OF A PATIENTS RACE, CREED, GENDER, NATIONAL ORIGIN, PHYSICAL OR MENTAL DISABILITY, OR ABILITY TO PAY. VISION AND STRATEGY AHN AND HH ARE FULLY COMMITTED

Community Benefits

AHN AND ITS TAX-EXEMPT SUBSIDIARY FACILITIES SUPPORT A BROAD ARRAY OF CHARITABLE SERVICES TO THE COMMUNITY BY PROVIDING SUBSIDIZED HEALTH CARE; SPONSORING COMMUNITY EVENTS (HEALTH FAIRS, CANCER SCREENINGS, WALKS, EDUCATIONAL SEMINARS; SUPPORT GROUPS); AND MAKING CHARITABLE DONATIONS. THE SERVICES BENEFIT CHILDREN AND TEENS, ADULTS AND SENIORS, PATIENTS AND THEIR FAMILIES, AND THE COMMUNITY AT LARGE. THIS FOLLOWING IS NOT A TOTAL ACCOUNT OF ALL OF AHNS CHARITABLE ACTIVITIES, BUT A SAMPLING OF AHNS MANY CONTRIBUTIONS TO THE COMMUNITY, AND ITS COMMITMENT TO PROVIDE A WIDE RANGE OF QUALITY HEALTH SERVICES TO DIVERSE COMMUNITIES AND TO ALL WHO SEEK AHNS CARE: AHN POSITIVE CLINIC: THE POSITIVE HEALTH CLINIC (PHC) IS A COMPREHENSIVE HIV PRIMARY CARE CLINIC PROVIDING STATE-OF-THE-ART CARE TO HIV-POSITIVE PERSONS. ITS SUPPORT STAFF INCLUDES PHYSICIANS, NURSES, MEDICAL ASSISTANTS, SOCIAL WORKERS, BEHAVIORAL HEALTH THERAPISTS, PSYCHIATRISTS AND PATIENT ADVOCATES. THE TEAM TREATS MORE THAN 750 PATIENTS AND HAS EXTENSIVE EXPERIENCE WITH ALL ASPECTS OF HIV MANAGEMENT, PROVIDING A WIDE RANGE OF PRIMARY AND SPECIALIZED HIV CARE, REGARDLESS OF AN INDIVIDUAL'S MEDICAL INSURANCE COVERAGE OR ABILITY TO PAY. SERVICES AND PROGRAMS INCLUDE: COMPREHENSIVE HIV CARE; RAPID HIV TESTING AND COUNSELING AND PARTNER TESTING; MEDICATION ADHERENCE COUNSELING AND PHARMACY SUPPORT; GYNECOLOGIC CARE; NUTRITIONAL ASSESSMENT AND COUNSELING BY A REGISTERED DIETITIAN; TREATMENT FOR PERSONS CO-INFECTED WITH HIV AND HEPATITIS C; SMOKING CESSATION PROGRAMS; MENTAL HEALTH ASSESSMENT, COUNSELING AND PSYCHIATRIC SUPPORT; AND CASE MANAGEMENT FOR NON-MEDICAL NEEDS. THE STAFF ASSISTS WITH FINANCIAL OR SOCIAL ISSUES THAT MAY INTERFERE WITH THE PROVISION OF MEDICAL CARE. AHN ALSO PROVIDES SIGNIFICANT FINANCIAL SUPPORT TO A REGIONAL AIDS-PREVENTION PARTNERSHIP WHOSE GOAL IS TO END NEW HIV INFECTIONS IN ALLEGHENY COUNTY, PA., BY 2020. BRADDOCK URGENT CARE: IN 2015, AHN AND HH OPENED THE AHN URGENT CARE CENTER, SUBSIDIZING HEALTH CARE ACCESS FOR THE UNDERSERVED BRADDOCK, PA., COMMUNITY, BY PROVIDING CARE ON A CHARITABLE BASIS AND SERVING A SIGNIFICANT SHARE OF MEDICARE AND MEDICAID PATIENTS. WITH THE HELP OF A GRANT FROM HIGHMARK INC., AHN HAS LAUNCHED An implementation PLAN, INTENDED TO EDUCATE AND IMPROVE OUTCOMES FOR BRADDOCK-AREA RESIDENTS IN FOUR KEY AREAS: BEHAVIORAL HEALTH, INCLUDING SUBSTANCE ABUSE AND MENTAL HEALTH DISORDERS; CANCER, PARTICULARLY OF THE PROSTATE, LUNG, COLON OR BREAST; CHRONIC DISEASE, WITH A FOCUS ON ASTHMA AND DIABETES, AND MATERNAL AND CHILD HEALTH, WITH A PARTICULAR FOCUS ON SEXUALLY TRANSMITTED DISEASE PREVENTION. THE AHN URGENT CARE CENTER WAS BUILT FOLLOWING THE CLOSURE OF BRADDOCKS COMMUNITY HOSPITAL, WHICH HAD BEEN THE PRIMARY JOB SOURCE AND HEALTH CARE ACCESS POINT FOR BRADDOCK RESIDENTS. THE AHN URGENT CARE CENTER IS STAFFED BY BOARD CERTIFIED PHYSICIANS, REGISTERED NURSES, MEDICAL ASSISTANTS AND RADIOLOGY TECHNICIANS, AND EQUIPPED WITH 12 PATIENT EXAM ROOMS AND DIAGNOSTIC CAPABILITIES SUCH AS X-RAY IMAGING AND BLOOD WORK. CANCER SCREENINGS: MANY CANCERS CAN BE PREVENTED OR DETECTED AT EARLIER AND MORE TREATABLE STAGES IF PATIENTS UNDERGO ROUTINE SCREENING TESTS. IN THE FALL OF 2014, AHN LAUNCHED A FREE HEALTH SCREENING AND CANCER EDUCATION PROGRAM AT JEFFERSON HOSPITAL, WITH SCREENINGS FOR CERVICAL, BREAST, COLORECTAL, PROSTATE, LUNG, HEAD AND NECK, AND SKIN CANCER. IN 2015, THE SCREENING PROGRAM EXPANDED ACROSS THE NETWORK, AND IN 2016 AND 2017, AHN CLINICIANS PROVIDED 2,700 SEPARATE SCREENINGS TO NEARLY 850 PATIENTS AT EVENTS THROUGHOUT THE AREA. THOSE WITH ABNORMAL SCREENINGS WERE REFERRED FOR FOLLOW-UP TREATMENT OR TESTING. THE SCREENINGS ARE ALL PERFORMED BY AHN HEALTH PROFESSIONALS, WHO VOLUNTEER THEIR TIME AT NO COST TO THE PATIENTS. PATIENT SURVEYS SHOW A HIGH RATE OF SATISFACTION AND APPRECIATION FOR THE AHN CANCER INSTITUTE CANCER SCREENING AND EDUCATION PROGRAM. CHARITY CARE: TOGETHER AS AN ENTERPRISE, AHN AND HIGHMARK HEALTH PROVI

IMMIGRANT HEALTH PROGRAM: THE IMMIGRANT HEALTH PROGRAM AT

Allegheny Health Network, part of the AHN Center for Inclusion Health, works toward the delivery of a new community health model aimed at meeting the health care needs of immigrant women in our region. FROM 2005-2015, THE NUMBER OF FOREIGN-BORN AREA RESIDENTS GREW FROM 48,266 TO 72,265, MORE THAN HALF OF WHOM ARE WOMEN. OVER THE NEXT THREE YEARS, AHNS CENTER FOR INCLUSION HEALTH AND MORE THAN A DOZEN LOCAL COMMUNITY HEALTH AND SOCIAL SERVICE PROVIDERS WILL CONVENE TO DELIVER THE "IMMIGRANT WOMEN COMMUNITY HEALTH MODEL" AIMED AT PROVIDING IMMIGRANT WOMEN ACCESS TO CULTURALLY-COMPETENT AND QUALITY PERINATAL SERVICES, AS WELL AS OTHER WOMENS HEALTH AND SOCIAL SERVICES. MEDICAL RESPITE PROGRAM: IN 2016, AHN ESTABLISHED A NEW MEDICAL RESPITE PROGRAM THAT PROVIDES ITINERANT PATIENTS RECOVERING FROM ILLNESSES WITH A SAFE PLACE TO RECUPERATE AND RECEIVE ONGOING NON-ACUTE CARE AND SUPPORT FOLLOWING A HOSPITAL STAY. THIS INNOVATIVE MODEL REPRESENTS THE FIRST AND ONLY MEDICAL RESPITE PROGRAM IN THE PITTSBURGH REGION. THE MEDICAL RESPITE PROGRAM FIRST ADDRESSES THE PATIENTS' PRIMARY NEEDS FOR SAFE TEMPORARY HOUSING AND NUTRITION(THROUGH PARTNERSHIPS WITH LOCAL HOMELESS SERVICES FACILITIES LOCATED IN DOWNTOWN PITTSBURGH); THEN FOLLOWS UP WITH PATIENTS HEALTH NEEDS WITH VISITS FROM AHN HEALTH CARE PROFESSIONALS (AHNS CENTER FOR INCLUSION HEALTH AND HEALTHCARE@HOME PROGRAMS). THROUGH THIS MODEL, THE PROGRAM HELPS ACHIEVE BETTER HEALTH OUTCOMES AND SOCIAL STABILITY FOR AT-RISK PATIENT POPULATIONS, WHILE LOWERING THEIR RISK OF DANGEROUS AND COSTLY RE-HOSPITALIZATIONS. OPEN HEART SURGERY OBSERVATION: SINCE 2008, HIGH SCHOOL STUDENTS FROM WESTERN PENNSYLVANIA, WEST VIRGINIA AND OHIO HAVE BEEN INVITED TO OBSERVE ALLEGHENY HEALTH NETWORKS CARDIOVASCULAR SURGEONS IN ACTION THROUGH THE CARDIOVASCULAR INSTITUTES (CVI) OPEN HEART SURGERY OBSERVATION PROGRAM. THE PROGRAM, WHICH HAS HOSTED MORE THAN 15,000 AREA STUDENTS FROM DOZENS OF SCHOOLS, IS SUPPORTED BY TWO PART-TIME POSITIONS, AND IS PART OF AHNS AND THE CVIS COMMITMENT TO COMMUNITY EDUCATION AND INSPIRING FUTURE GENERATIONS OF HEALTHCARE PROFESSIONALS. PERINATAL HOPE: IN 2016, AHN LAUNCHED ITS PERINATAL HOPE PROGRAM, A MEDICAL HOME CARE MODEL FOR MOTHERS-TO-BE WHO ARE ADDICTED TO DRUGS. THE PROGRAM PROVIDES COMPREHENSIVE AND COORDINATED TREATMENT THAT PUTS THE MOTHER AND BABY ON TRACK FOR A MORE HOPEFUL FUTURE. PERINATAL HOPE IS THE REGIONS FIRST ALL-INCLUSIVE PROGRAM FOR MATERNAL ADDICTION THAT COMBINES OBSTETRICAL CARE, AND DRUG AND ALCOHOL THERAPY AND MEDICATION-ASSISTED TREATMENT INTO ONE CLINIC VISIT. PERINATAL HOPE IS SUPPORTED IN PART BY GRANTS FROM THE MARCH OF DIMES FOUNDATION WESTERN PENNSYLVANIA, THE HIGHMARK FOUNDATION AND THE JEWISH WOMENS FOUNDATION OF GREATER PITTSBURGH. ADDITIONALLY, AHNS NEW WOMENS BEHAVIORAL HEALTH PROGRAM INCLUDES THE REGIONS FIRST INTENSIVE OUTPATIENT PROGRAM FOR WOMEN WITH PREGNANCY-RELATED DEPRESSION. SPECIAL OLYMPICS: FOR FOUR STRAIGHT YEARS, ALLEGHENY HEALTH NETWORKS SPORTS MEDICINE TEAM PROVIDED ON-SITE MEDICAL SUPPORT TO ATHLETES COMPETING IN THE SPECIAL OLYMPICS PENNSYLVANIA (SOPA) WINTER GAMES. SPECIAL OLYMPICS PENNSYLVANIA PROVIDES YEAR-ROUND TRAINING AND COMPETITION IN 21 OLYMPIC-TYPE SPORTS TO NEARLY 20,000 CHILDREN AND ADULTS WITH INTELLECTUAL DISABILITIES. STOP THE BLEED: AS PART OF THIS ONGOING COMMUNITY AWARENESS CAMPAIGN, AHN TRAUMA CENTER REPRESENTATIVES PARTNER WITH EMS PROFESSIONALS TO PROVIDE SCHOOL OFFICIALS WITH TRAINING ON HOW TO HELP CONTROL BLEEDING FROM INJURIES IN THE EVENT OF A MASS CAUSALLY INCIDENT. SIMILAR TO HOW HEALTH CARE PROVIDERS EDUCATE THE GENERAL PUBLIC IN CPR, THE "STOP THE BLEED" CAMPAIGN FOCUSES ON TRAINING THE GENERAL PUBLIC IN BLEEDING CONTROL TECHNIQUES. IN MASS CASUALTY INCIDENTS, INDIVIDUALS OFTEN SUFFER INJURIES THAT RESULT IN PREVENTABLE DEATHS. BY TRAINING THE GENERAL PUBLIC IN BASIC BLEEDING CONTROL TECHNIQUES, BYSTANDERS WILL BE ABLE TO INITIATE LIFESAVING MEASURES BEFORE THE FIRST RESPONDERS ARRIVE. SUMMER

Hospital Profiles and Health System Components

Allegheny general hospital: founded in 1885, allegheny general hospital (agh) is ahns flagship hospital, serving as ahns primary teaching hospital, its premier quaternary care facility, offering highly advanced specialties such as organ transplantation, neurosurgery, surgical oncology and cardiovascular surgery. Located in pittsburghs north side, agh has 576 licensed beds and approximately 800 physicians and 5,000 staff members. Agh is also a level i shock trauma center, and its lifeflight aeromedical service was the first to fly in the northeastern united states. For the 2017 reporting period, total inpatient discharges were approximately 24,000, emergency department visits were 54,000, and outpatient visits were 330,000. Allegheny valley hospital: allegheny valley hospital (avh) has served natrona heights, pa., and the surrounding community for over 100 years. Avh has 190 licensed beds and provides emergency care, surgical care, rehabilitation care and other quality health care services for its patients. For the 2017 reporting period, total inpatient discharges were approximately 5,500, emergency department visits were 37,000, and outpatient visits were 181,000. Canonsburg hospital: since 1904, 104-bed canonsburg hospital (ch), based in canonsburg, pa., has served the communities of northern washington and southern allegheny counties, providing quality medical care and improving the health and well-being of its patients. For the 2017 reporting period, total inpatient discharges were approximately 2,200, emergency department visits were 17,000 and outpatient visits were 63,000. Forbes hospital: since 1978, forbes hospital (fh) has been providing high-quality care for the communities of eastern allegheny and westmoreland counties. Forbes features a level ii trauma center, a top rated cardiovascular surgery program and a comprehensive obstetrics and gynecology service among its many clinical offerings. A 315-bed facility based in monroeville, pa., fh recorded approximately 14,600 inpatient discharges, 40,000 emergency department visits, 147,000 outpatient visits and 1,200 births in the 2017 reporting period. Jefferson hospital: jefferson hospital (jh) was organized in 1973. Located just south of pittsburgh, the 341-bed hospital provides a wide spectrum of high quality health care services, from emergency care and intensive care, comprehensive surgical programs and rehabilitation. In 2014, jh opened a new labor and delivery unit, the first new hospital-based maternity program to be built and developed in pennsylvania in three decades. For the 2017 reporting period, total inpatient discharges were approximately 14,400, emergency department visits were 50,000, outpatient visits were 255,000 and births totaled nearly 1,000. Saint vincent hospital: saint vincent hospital (svh) is a 371-bed facility that provides inpatient, outpatient and emergency care services for residents of northwestern pennsylvania and adjacent areas of new york and ohio. Founded by the sisters of st. Joseph in 1875, svh continues to exemplify the values of the sisters in providing compassionate care to all. Additionally, svhs four-bed satellite facility, westfield memorial hospital, has provided high quality health care to residents of western new york for more than half a century. For the 2017 reporting period, svhs total inpatient discharges were approximately 14,000, emergency department visits were 64,000, outpatient visits were 195,000, and births were nearly 1,000. Westfield memorial hospital: westfield memorial hospital is a hospital facility which is part of the saint vincent health system, an integrated health system consisting of saint vincent health center (svhc), saint vincent foundation for health and human services, physician practice sites, varoius ancillary services, over one hundred employed physicians and a variety of other health-related providers. West penn hospital: serving the bloomfield area of pittsburgh and its surrounding communities

OUTPATIENT CARE FACILITIES: IN ADDITION TO ITS HUNDREDS OF

Clinical offices, ahn operates four large, multi-specialty health + wellness pavilions (two in allegheny county, one in washington county, and one in erie county); five urgent care clinics (three in allegheny county and two in erie county); and eight hospital-based and free-standing surgery centers (six in allegheny county, one in washington county and one in erie county). Another health + wellness pavilion is now under construction in erie. Allegheny health network research institute: ahns research institute offers access to new drug therapies, hones revolutionary surgical procedures, and has advanced expertise with innovative devices and wearable technologies that help reduce the impact of chronic disease. The institute partners with industry, government, academia, and health systems across the region to work toward a series of common goals: discovering cures, developing the next clinical "best practices," improving the health of patients and advancing the science of medicine. Physicians and scientists at allegheny health network are often on the cutting edge of advanced treatments and new technologies. Innovative medical research across all of the network's programs is a critical component of the organizations mission. The networks research institute coordinates private and federally funded interdisciplinary programs designed to better understand, treat and prevent disease, and the networks hospitals are frequently involved in clinical trials of breast, prostate and bowel cancer, burn and traumatic injuries, gene therapy, cardiovascular disease, leukemia and lymphoma, autoimmune diseases, neurological diseases, and more. The network is currently home to hundreds of active clinical research trials. Allegheny clinic: with more than 1,200 employed physicians and 4,700 total employees, the allegheny clinic is one of western pennsylvanias largest physician groups. Since the formation of allegheny health network, ahn has added hundreds of primary care physicians, specialists and surgeons to the allegheny clinic. Those physicians and administrative staff support dozens of specialty service lines and clinical institutes, including the bariatric and metabolic institute, the cancer institute, the cardiovascular institute, the esophageal and lung institute, the neuroscience institute, the orthopaedic institute and the transplant institute. Foundations: in addition to the aforementioned entities, ahn also includes a number of affiliated philanthropic organizations: the alle-kiski medical center trust (akmc trust), forbes health foundation (fhf), suburban health foundation (shf), and the western pennsylvania hospital foundation.

Key Institutes and Service Lines

Allegheny health network cancer institute: ahns cancer institute includes more than 50 cancer institute clinics, two dozen separate clinical locations and a multidisciplinary team of more than 200 physicians; together they treat 10,000 patients annually in western pennsylvania, erie, west virginia, and ohio. Ahn recently opened an extended hours oncology clinic at west penn hospital to better care for patients experiencing the side effects of chemotherapy treatments, and over the next few years, ahn and hh will invest more than $225 million in new infrastructure and capabilities to support our vision and strategy for serving our patients and members who are diagnosed with cancer; that infrastructure will include a new academic cancer institute on the agh campus as well as several new community-based cancer centers. Additionally, ahn collaborates with johns hopkins kimmel cancer center, to offer more stream-lined access to clinical trials and provide additional treatment options and second opinions for patients with rare and complex cancers, among other benefits. Allegheny health network cardiovascular institute: on the frontier of advanced specialty heart care, the allegheny health network cardiovascular institute (cvi) is one of the premier cardiac programs in the country, providing superior state-of-the-art care for patients with heart disease and access to western pennsylvania's most comprehensive, multidisciplinary team of specialists and innovative therapies, including many available only through advanced clinical trials. The physicians of the allegheny health network cvis seven hospitals and 20 outpatient pittsburgh- and erie-area locations have helped to pioneer the use of the latest generation of implantable cardioverter-defibrillators; were among the first in the nation to perform trans-catheter aortic valve replacement (tavr), replacing defective aortic heart valves via a minimally invasive catheter procedure; introduced new treatments to repair defective mitral valves via robot-assisted minimally invasive surgery; and played an instrumental role in the development of left ventricular assist devices (lvad), a mechanical pump that is surgically implanted to assist a weakened heart muscle. Currently, the physicians at the cardiovascular institute are conducting research that leads to better ways to prevent, find and treat heart disease; currently, ahn researchers and physicians are working on more than 75 research projects and clinical trials. Additionally, ahns womens heart center, the first heart center of its kind in allegheny county, treats complex cardiovascular conditions for adult women of all ages. Allegheny health network neuroscience institute: ahns neuroscience institute is a national leader in providing innovative, expert care for complex brain, spine, or neurological conditions. Ahns renowned neurosurgeons have developed groundbreaking surgeries and treatment advancements that lead to improved care for patients experiencing the symptoms of parkinsons disease, trigeminal neuralgia, stroke complications, congenital spinal conditions, and more. Additionally, agh has earned a "comprehensive stroke center" designation, the highest distinction of stroke care awarded by the american heart associations joint commission. Ahns neuroscience program includes world-renowned experts in the subspecialties of neurology, neuro-otology, neuroradiology, neuro-critical care, and neurosurgery, and the institute has been identified as a neurosciences center of excellence and a spine center of excellence, enabling ahn and agh to serve as a national and international referral center for treatment of all types of neurological conditions. Allegheny health network orthopaedic institute: the orthopaedic institutes multidisciplinary team of surgeons, physicians, nurses, physician assistants and rehabilitation specialists work together to develop a coordinated treatment plan specifically designed for each patient, specializing in pedia

Accomplishments

Over the years, allegheny health network has been recognized for its advanced technologies, clinical quality, and the depth and breadth of its professional and clinical programming. It has received the following awards, recognitions and accreditations, among others: alliance for clinical trials in oncology and national marrow donor program: ahn cancer institutes blood and bone marrow transplant program is approved by both the alliance for clinical trials in oncology for conducting research and by the national marrow donor program, giving patients the best chance of being matched with a donor. Als association: in 2014, the als association, along with its western pennsylvania chapter, designated the als center at allegheny health network as a certified treatment center of excellence. The als association offers this designation for institutions that meet rigorous eligibility criteria, including diversity of professional expertise in als; access to coordinated, multidisciplinary care; a strong, ongoing relationship with the local als association chapter; and evidence of active participation in als research. It is the only als association certified treatment center of excellence in western pennsylvania. American college of radiology and american society for therapeutic radiation oncology: ahn cancer institute is accredited by both the american college of radiology (acr) and the american society for therapeutic radiation oncology (astro), and is the countrys largest acr accredited network. American heart association: in 2016, jefferson hospital received an accreditation and honors that recognize its commitment to and skill in treating patients who suffer the most severe kind of heart attack, known as an st-elevation myocardial infarction or stemi. The american heart associations "mission: lifeline" stemi accreditation program named jefferson a mission: lifeline heart attack receiving center through july 2019. Jefferson was the first hospital in western pennsylvania to earn this accreditation. American heart association/american stroke association: in 2017, five allegheny health network hospitals received national recognition for their commitment and success in delivering excellent, evidence-based care for stroke patients. Allegheny general, allegheny valley, forbes, jefferson and saint vincent hospitals each earned the stroke gold plus quality achievement award in the ahas / asas "get with the guidelines achievement awards." american hospital association: in 2017, allegheny general hospital, forbes hospital, saint vincent hospital, and west penn hospital, all part of ahn, were recognized as "most wired 2017 winners" by the american hospital associations health forum. American hospital association: in 2017, ahas "mission: lifeline" stemi recognition program named saint vincent hospital in erie a "mission: lifeline" receiving center silver stemi award winner for treatment of patients suffering from the most severe kind of heart attack, known as an st-elevation myocardial infarction, or stemi. American hospital association: in 2017, agh and jefferson earned spots on the target: heart failure honor roll, an aha initiative that requires hospitals to meet criteria that improves medication adherence, provides early follow-up care and coordination, and enhances patient education. Hospitals on the honor roll receive educational tools, prevention programs, and treatment guidelines for heart failure patients. American medical group association: in 2016, allegheny health networks premier medical associates received the american medical group associations prestigious acclaim award in recognition of its innovative care models. The award, supported by the associations amga foundation, is designed to recognize and celebrate the successes that medical groups and other organized systems of care have achieved in improving the value of the healthcare services they provide to their communities. American nurses credentialing center: in 2017, ahns west pe

HIGHMARK, INC.: AHN CANCER INSTITUTE IS A BLUE DISTINCTION CENTER

For cancer care, a designation that recognizes physicians, physician practices, cancer centers, and hospitals for their efforts in coordinating all types of cancer care, improving quality of care and safety as well as affordability. Hospital and healthsystem association of pennsylvania: in 2017, the hospital and healthsystem association of pennsylvania awarded ahns allegheny general hospital's its highest-level "titanium" award, which recognizes hospitals and health systems that engage in unprecedented levels of outreach activities in order to raise awareness for organ donation and encourage new donor registrations. Jewish healthcare foundation / the fine foundation: in 2017, allegheny health network's center for inclusion health was recognized with a fine award for its medical respite program. To better meet the healthcare needs of the homeless and unstably-housed population, the respite program provides patients recovering from illnesses with a safe place to recuperate and receive ongoing non-acute care and support following a hospital stay. It is the first and only program of its kind in the tri-state region. Myelodysplastic syndromes foundation: ahn cancer institute is an mds (myelodysplastic syndromes) foundation center of excellence. To be recognized as a center of excellence, an institution must have an established university program, recognized expertise in mds, available cytogenetics or molecular genetics testing, ongoing research, including irb-approved clinical trials and documented peer-reviewed publications. Ahn is also a transplant center of excellence for aetna, cigna (lifesource), united healthcare (optum) and humana. National accreditation program for breast centers: allegheny general hospital and the wexford health + wellness pavilion, both part of the allegheny health network (ahn), have been designated as accredited breast centers for a three-year term by the national accreditation program for breast centers (napbc). Accreditation is granted only to breast centers that are committed to providing the highest quality care for diseases of the breast. National pancreas foundation: allegheny health network is designated as a national pancreas foundation center for the treatment and care of patients with pancreatic cancer, one of just 28 such centers nationwide. Npf centers are based at premier healthcare facilities that focus on multidisciplinary treatment of pancreatic cancer, treating the "whole patient" with a focus on the best possible outcomes and an improved quality of life, according to the npf. National research corporation: in 2017, allegheny general hospital was named a 2017 consumer choice award winner by the national research corporation (nrc). Based solely on the views of healthcare consumers, the award identifies hospitals that have the highest quality and image in their respective markets; agh was one of approximately 300 u.s. Medical centers cited by the nrc for overall excellence. Pennsylvania department of human services (dhs): in 2017, allegheny health network established a center of excellence for opioid use disorder to help patients with opioid-related substance use disorders receive the health and community-based care and support they need. It is one of 45 programs implemented across pennsylvania, all of which are supported by a grant from the states department of human services. According to dhs, health care providers selected to receive the grant were chosen for being ahead-of-the-curve when it comes to substance use disorder treatment. Pulmonary hypertension association: in 2015, allegheny general hospital earned an accreditation that places it in exclusive company as one of just 29 healthcare facilities in the u.s. And the only one in western pennsylvania to be recognized for the quality of its pulmonary hypertension (ph) program. Agh joins the university of pennsylvania as the only medical centers in the state to receive pulmonary hypertension care center (phcc) accreditation. Quality

Voting Members of Governing Board

Form 990, part i, line 3 the number of voting members of the governing body reflected in irs form 990, page 1, part i, line 3 will not correspond to the actual number of voting members listed in irs form 990, page 7, part vii. The reason being is that certain voting members of the governing body are voting members for more than one of the organizations included in this group filing. In these instances, the individual is counted in part i, line 3 in accordance with the number of organizations they are voting members but will only be listed in part vii once.

Individuals Employed

Form 990, part i, line 5 and part v, line 2a total number of individuals employed in 2017 of 24,480 is representative of the sum of all individuals employed by each of the 18 separate and distinct legal entities that are subsidiaries of highmark health group and are included in the group return.

Contributions, Grants, and Similar Amounts Received

Form 990, part i, line 8 pursuant to treasury regulation section 1 6033-2(d)(5) the sponsoring entity of highmark health group, highmark health, has elected to report information about contributions, grants, and similar amounts received, information about officers, directors, trustees, and key employees, certain other highly paid employees, certain independent contractors on a consolidated basis along with all members of the highmark health group in the highmark health group return.

Members or Stockholders

FORM 990, PART VI, SECTION A, LINE 6 WEST PENN ALLEGHENY HEALTH SYSTEM, INC. IS THE SOLE MEMBER OF THE FOLLOWING ENTITIES: - CANONSBURG GENERAL HOSPITAL - ALLEGHENY MEDICAL PRACTICE NETWORK - ALLEGHENY SINGER RESEARCH INSTITUTE - ALLE-KISKI MEDICAL CENTER - THE WESTERN PENNSYLVANIA HOSPITAL FOUNDATION - FORBES HEALTH FOUNDATION - ALLEGHENY CLINIC - ALLEGHENY CLINIC MEDICAL ONCOLOGY ALLEGHENY HEALTH NETWORK IS THE SOLE MEMBER OF THE FOLLOWING ENTITIES: - JEFFERSON REGIONAL MEDICAL CENTER - WEST PENN ALLEGHENY HEALTH SYSTEM, INC. - SAINT VINCENT HEALTH SYSTEM - SAINT VINCENT HEALTH CENTER ALLE-KISKI MEDICAL CENTER IS THE SOLE MEMBER OF: - ALLE-KISKI MEDICAL CENTER TRUST HIGHMARK HEALTH IS THE SOLE MEMBER OF: - ALLEGHENY HEALTH NETWORK SAINT VINCENT HEALTH SYSTEM IS THE SOLE MEMBER OF THE FOLLOWING ENTITIES: - SAINT VINCENT FOUNDATION FOR HEALTH AND HUMAN SERVICES - SAINT VINCENT AFFILIATED PHYSICIANS - SAINT VINCENT MEDICAL EDUCATION & RESEARCH INSTITUTE - Westfield Memorial Hospital CANONSBURG GENERAL HOSPITAL IS THE SOLE MEMBER OF: - CANONSBURG GENERAL HOSPITAL AMBULANCE SERVICE

Members or Stockholders Who May Elect

Form 990, part vi, section a, line 7a pursuant to the bylaws of each entity, the sole member of such entity has the power to elect or appoint all or a significant portion of such entitys board of directors and to remove or replace such directors.

Decisions Subject to Approval

FORM 990, PART VI, SECTION A, LINE 7B For the following entities that comprise the group, Highmark Health, as the direct or indirect sole member, holds certain reserve powers pursuant to the bylaws: - CANONSBURG GENERAL HOSPITAL - ALLEGHENY HEALTH NETWORK - JEFFERSON REGIONAL MEDICAL CENTER - ALLEGHENY SINGER RESEARCH INSTITUTE - ALLE-KISKI MEDICAL CENTER - THE WESTERN PENNSYLVANIA HOSPITAL FOUNDATION - ALLE-KISKI MEDICAL CENTER TRUST - FORBES HEALTH FOUNDATION - WEST PENN ALLEGHENY HEALTH SYSTEM, INC. - SAINT VINCENT FOUNDATION FOR HEALTH AND HUMAN SERVICES - SAINT VINCENT MEDICAL EDUCATION AND RESEARCH INSTITUTE - SAINT VINCENT HEALTH SYSTEM - SAINT VINCENT HEALTH CENTER - SAINT VINCENT AFFILIATED PHYSICIANS - CANONSBURG GENERAL HOSPITAL AMBULANCE SERVICE - ALLEGHENY CLINIC - ALLEGHENY CLINIC MEDICAL ONCOLOGY - ALLEGHENY MEDICAL PRACTICE NETWORK THE FOLLOWING ARE THE RESERVED POWERS OF HIGHMARK HEALTH: 1) TO APPROVE THE ELECTION, RE-ELECTION AND REMOVAL OF ALL OFFICERS, INCLUDING THE PRESIDENT AND CHIEF EXECUTIVE OFFICER, OF THE CORPORATION AND ITS SUBSIDIARIES; 2) TO AMEND, REVISE OR RESTATE THE CORPORATIONS ARTICLES OF INCORPORATION AND BYLAWS AND APPROVE ALL AMENDMENTS OR REVISIONS OF THE CORPORATIONS ARTICLES OF INCORPORATION AND BYLAWS THAT MAY BE PROPOSED OR APPROVED BY ALLEGHENY HEALTH NETWORK, THE MEMBER OR BOARD OF DIRECTORS OF THE CORPORATION, SUBJECT TO CERTAIN EXCEPTIONS. 3) TO ADOPT OR CHANGE THE MISSION, PURPOSE, PHILOSOPHY OR OBJECTIVES OF THE CORPORATION OR ITS SUBSIDIARIES; 4) TO CHANGE THE GENERAL STRUCTURE OF THE CORPORATION OR ANY OF ITS SUBSIDIARIES AS A VOLUNTARY, NONPROFIT CORPORATION; 5) TO (A) DISSOLVE, DIVIDE, CONVERT OR LIQUIDATE THE CORPORATION OR ITS SUBSIDIARIES, (B) CONSOLIDATE OR MERGE THE CORPORATION OR ITS SUBSIDIARIES WITH ANOTHER CORPORATION OR ENTITY, (C) SELL OR ACQUIRE ASSETS, WHETHER IN A SINGLE TRANSACTION OR SERIES OF TRANSACTIONS, WHERE THE CONSOLIDATION EXCEEDS 1% OF THE CORPORATIONS OR THE RELEVANT SUBSIDIARYS TOTAL ASSETS, AND (D) APPROVE ANY OF THE FOREGOING ACTIONS THAT MAY BE PROPOSED BY ALLEGHENY HEALTH NETWORK, THE MEMBER OR THE BOARD OF DIRECTORS OF THE CORPORATION BEFORE SUCH ACTION BECOMES EFFECTIVE; 6) TO APPROVE THE ANNUAL CONSOLIDATED CAPITAL AND OPERATING PLAN AND BUDGET OF THE CORPORATION AND ITS SUBSIDIARIES, AND ANY AMENDMENTS THERETO OR SIGNIFICANT VARIANCES THEREFROM; 7) APPROVE THE INCURRENCE OF DEBT BY THE CORPORATION AND ITS SUBSIDIARIES OR THE MAKING OF CAPITAL EXPENDITURES BY THE CORPORATION AND THE SUBSIDIARIES DURING ANY FISCAL YEAR OF THE CORPORATION, IN EITHER CASE IN EXCESS OF ONE QUARTER OF 1% OF THE CONSOLIDATED ANNUAL OPERATING BUDGET OF THE CORPORATION AND ITS SUBSIDIARIES FOR EACH FISCAL YEAR IF SUCH DEBT OR CAPITAL EXPENDITURES ARE NOT INCLUDED IN THE CORPORATIONS SUBSIDIARIES APPROVED BUDGETS, WHETHER IN A SINGLE TRANSACTION OR A SERIES OF RELATED TRANSACTIONS. 8) TO APPROVE ANY DONATION OR ANY OTHER TRANSFER OF THE CORPORATIONS OR ITS SUBSIDIARIES ASSETS, OTHER THAN TO THE MEMBER OR TO THE CORPORATION BY ITS SUBSIDIARIES, IN EXCESS OF $10,000,000, UNLESS SPECIFICALLY AUTHORIZED IN THE CORPORATIONS OR ITS SUBSIDIARIES APPROVED BUDGETS. 9) TO APPROVE STRATEGIC PLANS AND MISSION STATEMENTS OF THE CORPORATION AND ITS SUBSIDIARIES; 10) TO APPROVE INVESTMENT POLICIES OF THE CORPORATION AND SUBSIDIARIES; 11) TO APPROVE THE CLOSURE OR RELOCATION OF A LICENSED HEALTHCARE FACILITY OF THE CORPORATION AND ITS SUBSIDIARIES; 12) TO APPROVE THE FORMATION OF SUBSIDIARY CORPORATIONS, PARTNERSHIPS AND JOINT VENTURES OR TO MAKE NEW INVESTMENTS IN EXISTING SUBSIDIARY CORPORATIONS, PARTNERSHIPS AND JOINT VENTURES, IF THE NEW INVESTMENTS OF THE CORPORATION AND THE SUBSIDIARIES IN SUCH SUBSIDIARIES CORPORATIONS, PARTNERSHIPS, AND JOINT VENTURES DURING ANY FISCAL YEAR WOULD, IN THE AGGREGATE, EXCEED 1% OF THE CORPORATIONS CONSOLIDATED TOTAL ASSETS AT THE END OF THE PRIOR FISCAL YEAR OF THE CORPORATION; 13) TO ESTABLISH AND MANAGE THE CORPORATIONS PROGRAM FOR COMPLIANCE

Form 990 Review Process

FORM 990, PART VI, SECTION B, LINE 11B HIGHMARK HEALTH GROUP IRS FORM 990 WAS PREPARED BY ITS EXTERNAL ADVISORS, GRANT THORNTON, LLP AND REVIEWED BY THE HIGHMARK HEALTH TAX DEPARTMENT, SENIOR MANAGEMENT OF THE ORGANIZATION, AND THE AUDIT AND COMPLIANCE COMMITTEE. Before filing the tax return with the Internal Revenue Service, a final copy was provided to all members of the Boards of Directors.

Conflict of Interest Policy Monitoring & Enforcement

FORM 990, PART VI, SECTION B, LINE 12C Highmark Health (HH) has a corporate compliance department that monitors and oversees compliance with the Conflict of Interest Policy for all entities within the filing group. The following describes the manner in which the corporate compliance department monitors and oversees compliance with the conflict of interest policy: Conflict of interest disclosure forms are completed upon hire/appointment and on an annual basis by all board members, officers, key employees, managers and above, persons with purchasing authority including procurement department employees and committee which may influence purchasing decisions, and any other employees as designated by the compliance department. Upon completion of the above disclosure statement by all applicable individuals, the Integrity and Compliance Department reviews all disclosures. Those that require additional information or clarification are contacted by the integrity and compliance department requesting such. Once received, the Integrity and Compliance Department reviews the information to determine whether a real or potential conflict of interest exists. As applicable, Legal and Senior Management are consulted to determine whether a real or potential conflict of interest exists. When a conflict requires a mitigation plan, the mitigation plan is developed and approved in coordination with the respective responsible senior management. The senior managers are responsible for discussing the mitigation plan with the individual and monitoring compliance with the mitigation plan. A Conflict of Interest/Independence Disclosure Summary Report of all board members, officers, and executive management with reportable disclosures is provided to the Audit and Compliance committee of the Board of Highmark Health as well as the Board of Directors of Highmark Health, Allegheny Health Network and any applicable hospital.

Process for Determining Executive Compensation

FORM 990, PART VI, SECTION B, LINES 15A AND 15B Allegheny Health Network follows a process for determining compensation for executive positions, (including officers, key employees and other management positions), and is covered by the Highmark Health executive compensation policy. The policy was approved by the Highmark Health board of directors. It is the policy of AHN management to compensate its executives in accordance with the market and in relation to the experience, service and accomplishments of the individual both prior to and during their service with AHN. The Highmark Health personnel and compensation committee (P&C) of the Board of Directors approves the compensation for the president and CEO of AHN and all non-hospital senior executives who report directly to the president and CEO of AHN. The personnel and compensation committee uses comparability data provided by an independent compensation consultant. The external consultant provides a letter of reasonability for all offers made to new executives that report to the AHN CEO. Each P&C committee member voting on a senior executive's compensation arrangement ensures that he or she has no conflict of interest, including that he or she (a) does not economically benefit from the proposed employment; (b) does not receive compensation subject to the approval of the proposed employee; and (c) has no material financial interest affected by the transaction. The executive compensation program for the hospital entities within the group is administered by the CEO of Allegheny Health Network with respect to the CEOs, COOs and CFOs of each hospital, pursuant to overall guidelines established by the personnel and compensation committee of the board of directors of Highmark Health. It is the policy of AHN to compensate its executives in accordance with competitive market practices, taking into account organizational performance and the skills, experience, qualifications and performance of each executive. AHN generally targets the median of the relevant market with reasonable variation based on each executives skills, experience, performance and current positioning relative to market. Highmark Health management, in coordination with the independent consultant to the P&C committee obtains appropriate market comparability data for each position, including nationally published compensation surveys and/or specific organization peer groups, to prepare compensation recommendations for all key executives, including officers, key employees, and other disqualified persons. Recommendations are reviewed and approved by a committee that is independent with respect to the compensation provided to the executives. Compensation may include several forms of cash compensation, including base salary, performance-based incentive compensation, and a competitive employee benefits program. Base salary is the fixed element of compensation intended to align with each executives role, responsibilities, overall performance and other contributions. Incentive compensation is used to provide variable, or "at risk" compensation, based on the performance of both the executive and the organization. Typically, Allegheny Health Network and hospital executives can earn incentive compensation only if the organization achieves certain pre-determined goals as approved by the Board of Directors. The plans are intended to hold executives accountable for achieving performance that is consistent with the long-term goals and objectives of the organization. All entities within the filing follow the requirement in the regulations to comply with the rebuttable presumption of the reasonableness of compensation. THE COMPENSATION COMMITTEE COMPLETED A REVIEW AND APPROVAL OF COMPENSATION IN JULY 2017.

How Documents Are Made Available to the Public

FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS OR CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC. FINANCIAL STATEMENTS ARE ON A CONSOLIDATED BASIS, AND ARE AVAILABLE UPON REQUEST AND APPROVAL BY THE CFO OF HIGHMARK HEALTH. REPORTABLE COMPENSATION Part VII, Section A, Line 2 The total on line 2 includes the total number of individuals receiving over $100,000 of reportable compensation from the organization. WPAHS 1,595 SV 172 AHN Corporate 71 JRMC 54 INDEPENDENT CONTRACTORS PART VII, SECTION B, LINE 2 LISTED IN THIS FORM 990, PART VII ARE THE FIVE HIGHEST PAID INDEPENDENT CONTRACTORS THAT PROVIDED SERVICES THE HIGHMARK HEALTH GROUP. THE AMOUNT OF INDEPENDENT CONTRACTORS REPORTED ON LINE 2 INCLUDES THE TOTAL AMOUNT OF VENDORS PAID OVER $100,000.

Other Changes in Net Assets

Form 990, part xi, line 9 equity transfers 657,727,728 pension liability adjustments 8,325,340 other -76,681,399 ------------- total 589,371,669

Financial Statement Notes

Schedule D, Part V

Intended use of endowment funds the intended uses of the permanent and term endowments are for but not exclusive to: capital improvements, research, education, nursing activities, departmental needs, operating efficiencies, and overall patient care. The earnings off of the permanent endowment are expendable, based on the specific use of the fund.

Inclusion in Consolidated Afs

Highmark health group does not issue independent audited financial statements. Highmark health group is a component of a consolidated audited financial statement.

Schedule D, Part X, Line 2

Asc 740 footnote highmark health records uncertain tax positions in accordance with fasb accounting standards codification (asc) 740, income taxes. Asc 740 clarifies the accounting for uncertainty in income taxes by defining criteria that a tax positon on an individual matter must meet before that position is recognized. Asc 740 also provides guidance on measurement, classification, interest and penalties, disclosure and accounting in interim periods. Based on an analysis prepared by highmark health, it was determined that the application of fasb asc 740 had no material effect on the recorded assets and liabilities of hh on a standalone basis. An external audit is completed at a consolidated highmark system level only, including highmark health and all taxable and tax-exempt subsidiaries.

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