| Form 990, Part III, Line 4a |
subsidiaries, including: St. John Medical Center, Inc. (the "Medical Center"), St. John Sapulpa, Inc. ("St. John Sapulpa"), Jane Phillips Memorial Medical Center ("Jane Phillips"), Utica Services, Inc. ("Utica"), St. John Villas, Inc. ("St. John Villas"), Owasso Medical Facility, Inc. ("St. John Owasso"), St. John Health System Foundation, Inc. ("St. John Foundation"), St. John Building Corporation ("SJBC"), and St. John Broken Arrow, Inc. ("St. John Broken Arrow"). St. John, these subsidiaries, and all other subsidiaries under St. John's direct or indirect control or ownership are referred to herein as "the St. John System". Mission and Values: As a Catholic healthcare organization, St. John carries on the mission of its sponsors, through Ascension Health, of continuing the healing ministry of Jesus Christ. It aspires to provide health care that works, health care that is safe, and health care that leaves no one behind, with a promise to our patients and the communities we serve of providing medical excellence and compassionate care. It operates in conformance with "the ethical and religious directives for Catholic health facilities." Faithful to the sponsorship mission, philosophy and values, St. John's mission is to provide healthcare and related ministries for the people served, especially the sick, the poor and the powerless. The board of directors, management and employees of St. John are guided in their day-to-day actions and interactions with those who serve and who are served by the values of service to the poor, wisdom, reverence, creativity, dedication and integrity. St. John and St. John Sapulpa collaborate with other individuals and institutions in the various communities it serves to ascertain community needs and provides a broad range of services along the healthcare continuum to help meet those needs. Programs and services include preventive, diagnostic, therapeutic and rehabilitative programs, including emphasis on health promotion and disease prevention. St. John also advocates for public policies which advance a healthy and just society. St. John works with local, state and national leaders and organizations to bring about a healthcare delivery system that provides dignified access to and affordable, high quality healthcare for all persons. Community Needs Assessment: St. John Sapulpa, Inc. has completed a Community Health Needs Assessment and plan of response and those have been posted to each hospital's website and also the St. John Health System, Inc. website. St. John continues to look for ways to meet unmet community needs in a sustainable and collaborative way with other organizations to build healthier communities. Governance: The administrative powers of St. John Sapulpa, Inc. are vested in its board of directors, which controls and manages the properties, affairs and funds of the Hospital, subject to reservation of certain powers by St. John. The board meets regularly and it works in concert with, and when appropriate, under the direction of the St. John Health System, Inc. board. Community Benefit: In measuring and reporting quantifiable community benefit, St. John follows guidelines promulgated by the Catholic Health Association of the United States and endorsed by other organizations. Uncompensated care and other elements of community benefit are measured at the unreimbursed estimated cost of services or resources provided. St. John Sapulpa, Inc. is an integral part of the mission of service and the continuum of medical care provided by St. John. The St. John System serves as an important safety net provider of a broad continuum of health care services to the citizens of Northeastern Oklahoma and the surrounding region. Each of its six main hospitals operates a full-service, 24-hour, 365-day emergency room providing both urgent and emergency care to all individuals, regardless of their ability to pay. Patients seen in the St. John Health System for the fiscal year ended June 30, 2014: Beds in Service (including 37 newborn bassinets) 782 Total Discharges (excluding normal newborns) 38,704 Total Observation Days 19,086 Combined Discharges and Observation Days 57,790 Total Patient Days (excl. normal newborn and observations) 176.450 Average length of Stay in Days (excl. normal newborns and obs.) 4.56 Births 3,248 Emergency Room Visits 140,150 Outpatient Visits (excl. emergency room & one day surgeries) 394,526 Inpatient Surgical Cases 9,855 Outpatient Surgical Cases 15,545 Physician Office Patient Visits 617,023 Urgent Care Clinic Patient Visits 58,368 Combined Physician Office and Urgent Care Visits 675,391 Total Laboratory Procedures (incl. hospital and reference labs) 8,184,993 Patients seen in St. John Sapulpa, Inc. for the fiscal year ended June 30, 2014: Beds in Service 25 Total Discharges 784 Total Observation Days 1,192 Combined Discharges and Observation Days 1,976 Total Patient Days 3,659 Average Length of Stay in Days 4.67 Emergency Room Visits 19,417 Outpatient Visits (excl. emergency room and one day surgeries) 18,824 Inpatient Surgical Cases 30 Outpatient Surgical Cases 411 In its fiscal year ended June 30, 2014, St. John was able to identify and quantify an initial estimate of more than $81.1 million of total net consolidated quantifiable community benefit provided to thousands of individuals directly served. This represents more than 8% of total St. John System operating expenses. In addition to the quantifiable community benefit described above, the St. John System charged millions of dollars to the consolidated provision for bad debts in 2014 which were not included in the total quantifiable community benefit for the year. Also, unlike many other non-profit health systems based in states other than Oklahoma, the St. John System is not exempt from state and local sales taxes and, in fact, pays sales tax on many equipment, supplies and other purchases. When payments from certain government programs for direct graduate medical education and Oklahoma Trauma Fund participation are applied to community benefit expense, the net consolidated quantifiable community benefit expense for the St. John Health System for 2014 was estimated to be at least $74.9 million. The St. John System considers care for the poor to be an essential part of its mission of service to the community. The total cost of care for the poor includes the cost of charity care, the unreimbursed cost of services to Medicaid beneficiaries (together referred to as "uncompensated care for the poor"), and the cost of special programs or other activities specifically targeted to increase access to care or provide other services to the poor. "Care for the Poor" includes the estimated cost of care classified as charity care plus the estimated excess of the cost of services provided to Medicaid beneficiaries over the payments received from Medicaid. "Care for the Poor" does not include the cost of services classified and written off as bad debts or the excess of the cost of services provided to Medicare beneficiaries over the payments received from Medicare. Charity and Uncompensated Care: The St. John System's Hospitals, senior-care and other facilities provide services without regard to a patient's ability to pay. In 2014, the St. John System Hospitals provided a discount of at least 30% of billed charges to all uninsured patients. Uninsured patients also could qualify for an additional 15% prompt pay discount. In addition to these automatic discounts, patients can apply for financial assistance up to and including free care. The determination of the patient's qualification for financial assistance is based on an objective determination of the patient's financial resources and ability to pay. In general, all uninsured patients with household incomes of less than 300% of the federal poverty guidelines qualify for free or substantially discounted care. Other entities in the St. John System also provide charity care based on individual determinations of need. Management for St. John believes that all of its billing and collection policies and procedures comply with IRS guidelines and directives. Other Program Service Accomplishments: As previously discussed, the St. John System is organized and operated to provide medical excellence and compassionate care to the citizens of Northeastern Oklahoma, with a special preference for the poor and disadvantaged. Summary: The St. John System's role as one of the significant safety-net health care providers for the region continues to grow in prominence. St. John reinvests 100% of any profits derived into new and expanded services to the community. The St. John System is very proud of its history of service to the community and views its responsibility to continue to provide medical services to everyone, especially the poor and disadvantaged, very seriously. As the St. John System continues to face growing financial challenges, it becomes increasingly difficult to sustain our mission of service |
| Form 990, Part V, Line 2a: |
Statements Regarding Other IRS Filings and Tax Compliance: The salaries reflected on Form 990 were all reported on the Form 941 Employer's Quarterly Federal Tax Return of St. John Medical Center, Inc. These salaries were reimbursed to SJMC by the filing organization and were included in the number of employees on SJMC's calendar year 2013 Form W-3. The number of employees reported on Part V, Line 2a of Form 990 by the filing organization represents the number of employees providing services to the filing organization during calendar year 2013. |
| Form 990, Part VI, Section A, line 2 |
Many of the persons listed on Part VII have a "business relationship" with each other by virtue of employment by St. John Health System, Inc. related entities. Barbara Benedict, Director, and David Benedict, Director, have a family relationship. |
| Form 990, Part VI, Section A, line 6 |
St. John Sapulpa, Inc. has a single corporate member, St. John Health System, Inc. |
| Form 990, Part VI, Section A, line 7a |
St. John Sapulpa, Inc. has a single corporate member, St. John Health System, Inc., who has the ability to elect members to the governing body of St. John Sapulpa, Inc. |
| Form 990, Part VI, Section A, line 7b |
All decisions that have a material impact to St. John Sapulpa, Inc.'s financial information or corporation as a whole are subject to approval by its sole corporate member, St. John Health System, Inc. Ascension Health, the sole corporate member of St. John Health System, Inc. has designated a system authority matrix which assigns authority for key decisions that are necessary in the operation of the System. Specific areas that are identified in the authority matrix are: new organizations & major transactions; governing documents; appointments/ removals; evaluations; debt limits; strategic & financial plans; assets; system policies & procedures. These areas are subject to certain levels of approval by Ascension per the system authority matrix. |
| Form 990, Part VI, Section B, line 11 |
St. John Sapulpa, Inc. ("SJS") is an affiliate of St. John Health System, Inc. ("SJHS"). SJHS has hired a third party preparer experienced in the preparation of Form 990 to assist in the preparation of the return. The Executive Vice President/Chief Financial Officer and Controller of SJHS will work closely with the paid preparer in gathering the information for the return and will perform the initial detailed review of the return. The return will then be reviewed by the SJHS Audit Committee (as delegated by the board of the filing organization). A copy of the return will be provided to all voting board members of the filing organization prior to filing. |
| Form 990, Part VI, Section B, line 12c |
At every fiscal year end, St. John Health System, Inc. ("SJHS") distributes a copy of the current Conflict of Interest Policy and Procedure Bulletin, together with an explanation and questionnaire to the members of the Board of Directors, administrative officers and key employees of SJHS, its subsidiaries and affiliates, including St. John Sapulpa, Inc. The board members, administrative officers and key employees of SJHS, its subsidiaries and affiliates must complete the questionnaire and return it to the designated SJHS official within two weeks of receipt. Completed questionnaires are reviewed and summarized by the Vice President, Corporate Compliance and Integrity, or his/her designee. That individual then presents the questionnaire results to the heads of each hospital for further provision to the various Boards' Audit and Compliance Committees. The Audit and Compliance Committees, as appropriate, submit a confidential report to their Board Chairman summarizing the questionnaire results. The Board Chairman, as appropriate, may review with the Executive Committee the responses to the questionnaire results. Members of a committee with governing board delegated powers annually sign a statement which affirms such person has received a copy of the Conflict of Interest Policy, has read and understands the Policy, has agreed to comply with the Policy, and understands that the Organization is charitable and, in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish its tax-exempt purpose. |
| Form 990, Part VI, Section B, line 15 |
Compensation for all executives in St. John Health System, Inc. ("SJHS") of which St. John Sapulpa, Inc. is a part, is analyzed by an independent health care consulting firm. The analysis includes a fair market value assessment and establishment of a range for each position based on research of comparable health care systems of similar size. The report and recommended compensation levels for each executive management position is reviewed and approved by the Executive Compensation Committee of the SJHS Board of Directors. During the review and approval of the compensation, documentation of the decision was recorded in the board minutes. |
| Form 990, Part VI, Section C, line 19 |
The Organization will provide any documents open to public inspection upon request. |
| Form 990, Part VII, Section B: |
Independent Contractor Reporting: Compensation of independent contractors is paid by and reported on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, of St. John Medical Center, Inc. EIN 73-0579286. Expenses are allocated to and reimbursed by the filing organization to St. John Medical Center, Inc. As such, the organization has not reported independent contractors paid on Form 990, Part VII, Section B. |
| Form 990, Part IX, line 11g |
Contracted/Purchased Services: Program service expenses 739,662. Management and general expenses 35,119. Fundraising expenses 0. Total expenses 774,781. Medical Services: Program service expenses 3,827,239. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,827,239. Lab: Program service expenses 1,209,187. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,209,187. |
| Form 990, Part XI, line 9: |
Transfers from Affiliates 2,341,758. |
Attach to Form 990 or 990-EZ.