SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2012
Open to Public
Inspection
Name of the organization
Eastern Maine Healthcare Systems AHC
Acadia Hospital Corp AHC
Employer identification number

01-0459837
Identifier Return Reference Explanation
Form 990, Part XI, Line 9 Other Changes In Net Assets Or Fund Balances - Other Decreases Transfer to exempt subsidiary-Restorative Health = -$67979
Form 990, Part XI, Line 9 Other Changes In Net Assets Or Fund Balances - Other Decreases Transfer to exempt subsidiary-Meadow Wood = -$10511
Form 990, Part XI, Line 9 Other Changes In Net Assets Or Fund Balances - Other Decreases Transfer to exempt subsidiary-Eastern Maine Healthcare Syste = -$352421
Form 990, Part XI, Line 9 Other Changes In Net Assets Or Fund Balances - Other Decreases Transfer to exempt subsidiary -AHI = -$100000
Form 990, Part XI, Line 9 Other Changes In Net Assets Or Fund Balances - Other Increases Net change in Funds Held at EMHS Foundation = $91768
Form 990, Part XI, Line 9 Other Changes In Net Assets Or Fund Balances - Other Increases Change in Post Retirement Health Benefit = $893113
Form 990, Part VI, Line 19 Form 990, Part VI, Line 19: Other Organization Documents Publicly Available Acadia Hospital makes its governing documents, conflict of interest policy and financial statements available to the public upon request.
Form 990, Part VI, Line 15b Form 990, Part VI, Line 15b: Compensation Review and Approval Process for Officers and Key Employees Compensation of other officers and key employees of the organization is established by the Human Resources department who utilize external market research to establish compensation ranges for specific positions. The compensation of officers and key employees are reviewed by the Acadia President/CEO and Acadia Executive Committee.On an annual basis, the compensation ranges are compared to the updated survey information. The Human Resources department will determine where the employee will fall within the ranges established by the Human Resources department based on experience and credentials.
Form 990, Part VI, Line 15a Form 990, Part VI, Line 15a: Compensation Review & Approval Process - CEO, Top Management The CEO of Acadia Hospital and the system President/CEO (President) who serves on the board ex-officio are employed by the system parent, Eastern Maine Healthcare Systems (EMHS). The EMHS Executive Performance Management Committee (the Committee) is responsible to monitor and evaluate the performance of the EMHS President, to set compensation of the EMHS President, and to review recommendations of the EMHS President with respect to compensation of the Chief Executive Officer of the direct subsidiaries, and other direct reports to the President. The Committee is comprised entirely of independent Directors per EMHS bylaws.Process:The Committee meets regularly throughout the fiscal year at the discretion of the Committee chair as well as on call of the Chair of the EMHS board. In carrying out its duties pursuant to the Bylaws, the Committee:-Assures that the executive compensation program is administered in a manner consistent with the EMHS executive compensation philosophy.-Reviews and updates the EMHS executive compensation philosophy which serves as the foundation on which all current and future executive compensation decisions are made.-Assures that value of compensation provided by EMHS does not exceed the value of services provided by the executive.-Reviews annual incentive compensation criteria for eligible executives, as defined by the EMHS President.-Reviews periodic compensation survey information and provides expert input to proposed changes to the executive compensation program.-Assures that a formal and timely performance management system is in place for executives.-Reviews incentive compensation criteria scoring and associated pay schedules for officers and key employees.-Provides any public statements regarding executive compensation practices at EMHS deemed appropriate.-Maintains minutes of the meetings and communicates actions to the EMHS Board of Directors.To accomplish this, the committee uses an external consultant with access to comparative data from independent sources and include national as well as regional data points. The EMHS President reviews all direct report compensation actions with the committee. In addition, the EMHS President ensures that any subsidiary policies and practices governing executive compensation are consistent with the committee's philosophy and practices statement.
Form 990, Part VI, Line 12c Form 990, Part VI, Line 12c: Explanation of Monitoring and Enforcement of Conflicts The organization requests updates of potential conflicts and relationships from the officers and Board members on an annual basis. The request requires disclosure of all business relationships, board memberships, and family relationships. A database is maintained that is compared to payroll records and the accounts payable vendor list to identify any potential conflicts of interest. Transactions are reviewed for reasonableness as an arm's length transaction. The first agenda item for board meetings and board committee meetings is for members to declare any conflict of interest with upcoming agenda items or deliberations. At any point when consideration is being given to purchase/contract with a party in interest, the member with the conflict is either excused from the discussion and consideration process or abstains from voting on the matter. All transactions identified with parties in interest are disclosed within the Form 990. All are deemed to be arm's length transactions.
Form 990, Part VI, Line 11b Form 990, Part VI, Line 11b: Form 990 Review Process Form 990 is reviewed by the CFO of Acadia Hospital/Acadia Healthcare, Inc. It is also provided to each board member either electronically or in hard copy with an opportunity to ask questions prior to filing with the IRS.
Form 990, Part VI, Line 7b Form 990, Part VI, Line 7b: Describe Decisions of Governing Body Approval by Members or Shareholders EMHS has authority to appoint and remove the CEO of the Corporation. EMHS also has joint and superior authority to approve, disapprove or initiate action with respect to the following matters: I. amendments to the corporations Articles of Incorporation or Bylaws;II. changes in legal form of organization of the Corporation;III. election of the Directors/Trustees of the Corporation;IV. action concerning the Corporations operating budget and capital expenditures;V. the Corporations acquisition of assets or assumption of liabilities of an unaffiliated third party;VI. transfer of 5% or more of the assets of the Corporation;VII. financing transactions concerning the Corporation; VIII. merger, consolidation, sale, lease, mortgage, pledge or other disposition of all or substantially all assets of the Corporation; IX. add or revise a health care service of the Corporation;X. discontinue or close a health care service of the Corporation;XI. action concerning the Corporations role in the EMHS Strategic Plan;XII. action concerning the Corporations participation in key strategic affiliations with third parties not affiliated with EMHS; andXIII. dissolution of the Corporation.
Form 990, Part VI, Line 7a Form 990, Part VI, Line 7a: How Members or Shareholders Elect Governing Body Each year at their annual meeting, the directors elect replacements for those directors whose terms are expiring. Election of directors is subject to ratification by the EMHS Board of Directors.
Form 990, Part VI, Line 6 Form 990, Part VI, Line 6: Explanation of Classes of Members or Shareholder Acadia Hospital (the "Corporation") is a Maine nonprofit corporation. Eastern Maine Healthcare Systems ("EMHS"), also a Maine nonprofit corporation, is the sole corporate member of the Corporation.
Form 990, Part VI, Line 4 Form 990, Part VI, Line 4: Description of Significant Changes to Organizational Documents In December 2012 Eastern Maine Healthcare Systems (EMHS), the parent of this corporation, and this corporation together with other direct subsidiaries of EMHS, modernized their governance structure by replacing a traditional reserved powers model for EMHS control over its subsidiaries with a joint initiatory powers model of control. Under the traditional reserved powers model, in addition to the EMHS CEO having exclusive authority to appoint and remove the CEO of the subsidiaries, EMHS exercised control exclusively through approval rights over important subsidiary action. The new joint initiatory powers model gives EMHS authority not only to approve or disapprove important subsidiary action, but also to actually initiate action on behalf of the subsidiaries with respect to the following matters: I. amendments to the corporations Articles of Incorporation or Bylaws;II. changes in legal form of organization of the Corporation;III. election of the Directors/Trustees of the Corporation;IV. action concerning the Corporations operating budget and capital expenditures;V. the Corporations acquisition of assets or assumption of liabilities of an unaffiliated third party;VI. transfer of 5% or more of the assets of the Corporation;VII. financing transactions concerning the Corporation; VIII. merger, consolidation, sale, lease, mortgage, pledge or other disposition of all or substantially all assets of the Corporation; IX.add or revise a health care service of the Corporation;X.discontinue or close a health care service of the Corporation;XI.action concerning the Corporations role in the EMHS Strategic Plan;XII.action concerning the Corporations participation in key strategic affiliations with third parties not affiliated with EMHS; andXIII.dissolution of the Corporation
Form 990, Part VI, Line 2 Form 990, Part VI, Line 2: Description of Business or Family Relationship of Officers, Directors, Et James Breece, trustee is an employee of University of Maine and Mary M. Hood, trustee/officer is a board member of University of Maine System. Craig Hadley, trustee is an employee of Husson University; Dan Coffey, trustee/officer is a board member of Husson University; Betsy MacGregor-Webb, trustee is a board member of Husson University Board of Visitors.Richard A. Lyons, trustee and Betsy MacGregor-Webb, trustee are board members of Maine School Superintendent Association.
Form 990, Part III, Line 4d Form 990, Part III, Line 4d: Other Program Services Description OTHER PROGRAM SERVICES 4: The Acadia Hospital is a nonprofit psychiatric and chemical dependency hospital that, along with Acadia Healthcare, a provider of substance abuse and community integration services, serves the entire state of Maine. It currently has the largest psychiatric staff in Maine with a total of 23 psychiatrists, addictionologist/internist, and family practitioner. The facility opened twenty-one years ago in response to an urgent need for more hospital and community based mental health and chemical dependency treatment programs.In 2013, Acadia's total admissions amounted to 1,443 resulting in Acadia experiencing a 80.5% occupancy rate for the year. OTHER PROGRAM SERVICES 5: Please see the following excerpt from the EMHS Annual Report to the Community for details of community benefit projects at Acadia Hospital.Leadership: Daniel B. Coffey, President and CEO; Michael T. Shea, Board ChairDescription: Acadia Hospital is Maines comprehensive resource for information and treatment of mental illness and chemical dependency. Acadia Hospital is empowering people to improve their lives.Employees: 638Location: BangorAcadia Hospital Highlights-Dedicated the Anita Leonard Healing Garden.-Raised $43,165 in support of Acadia Youth Services at the Battle of the Bands fundraising event, which more than 500 people attended.-Recognized by the American Hospital Association as being a Most Wired hospital in the small and rural hospital category.-Awarded best student film at the Lewiston-Auburn Film Festival, The Road Back was also featured in an article in the June, 2013 edition of Boys Life magazine and reached nearly 30,000 views on Acadias YouTube channel.-Achieved improvement in core quality indicators.-Continued to exhibit patient artwork through Acadias Artisan Project; select pieces were also exhibited in the Eastern Maine Community College library.TOTAL COMMUNITY BENEFIT: $12,382,245Community Health Improvement Services: $119,521Health Professions Education: $315,985Community Building Activities: $10,871Community Benefit Operations: $196,000Unrecoverable Interest Cost on funds used to subsidize state MaineCare/Medicaid underpayments of $7.5M $677,422Traditional Charity Care: $6,970,757Unpaid Cost of Public Programs:Medicare: $4,091,689Philanthropy: $74,604
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2012

Additional Data


Software ID: 12000229
Software Version: 2012v2.0