FORM 990, SCHEDULE H, PART I, LINE 6A
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THE ORGANIZATIONS COMMUNITY BENEFIT REPORT IS PREPARED BY ITS ULTIMATE PARENT ENTITY, MERCY HEALTH (EIN: 43-1423050).
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FORM 990, SCHEDULE H, PART I, LINE 7, COLUMN F
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TOTAL EXPENSES FROM FORM 990, PART IX, LINE 25, COLUMN (A) ARE $4,987,771. INCLUDED IN THIS AMOUNT WAS BAD DEBT EXPENSE (CHARGES) OF $238,634. EXPENSES FOR THE PURPOSE OF CALCULATING LINE 7, COLUMN (F) ARE $4,749,137.
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FORM 990, SCHEDULE H, PART I, LINE 7G
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THE ORGANIZATION DID NOT INCLUDE ANY PHYSICIAN CLINIC COSTS ON LINE 7G.
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FORM 990, SCHEDULE H, PART II
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COMMUNITY BUILDING ACTIVITIES ADDRESS ROOT CAUSES OF HEALTH RELATED PROBLEMS. MULTIDISCIPLINARY COMMUNITY PARTNERSHIPS AND COLLABORATION ADDRESS SYSTEMIC MALFUNCTION AND ROOT CAUSES OF ISSUES LIKE POVERTY, VIOLENCE AND HOMELESSNESS AMONG OTHERS. THEY STRENGTHEN THE COMMUNITYS ABILITY TO PROMOTE HEALTH AND WELL-BEING. IN THE COLUMBUS COMMUNITY, MERCY HAS COMMITTED TO IMPROVING THEIR HOSPITAL TO BETTER SERVE THEIR COMMUNITY. ONE EXAMPLE OF THIS IMPROVEMENT IS TO CREATE BETTER FUNCTIONAL SPACE WITHIN THE HOSPITAL AND IMPROVE THE AESTHETICS OF THE FACILITY. WITH THIS IMPROVEMENT, MERCY COLUMBUS IS ABLE TO PROVIDE BETTER CUSTOMER SATISFACTION AND PROMOTE HEALTH THROUGH BETTER PROGRAMS AND TECHNOLOGY. LIKE OTHER LOCAL KANSAS COMMUNITIES, THE COLUMBUS COMMUNITY HAS NOTABLE POVERTY RATES AND HIGH NUMBERS OF CHILDREN WITH REDUCED OR FREE LUNCHES IN OUR SCHOOLS. PAST COMMUNITY NEED DISCUSSIONS CONFIRMED REPEATEDLY THAT A HEALTHY COMMUNITY SUPPORTS WELL BEING OF RESIDENTS. LIKEWISE, ACCESS TO A FAIR FAMILY WAGE AFFORDS FAMILIES OPPORTUNITIES TO GAIN EDUCATION THAT IN TURN HAS SHOWN TO LEAD TO LEVERAGING HEALTH OPPORTUNITIES. SOLID INFRASTRUCTURE AND A STABLE ECONOMY SET A CONTEXT FOR CITIZENS TO REACH POTENTIAL AND IN TURN CONTRIBUTE TO SOCIETY FOR FUTURE GENERATIONS. COMMUNITY BUILDING ACTIVITY NEEDS TO BE A PRIORITY FOR THIS COMMUNITY.
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FORM 990, SCHEDULE H, PART III, SECTION A, LINE 2
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TO DETERMINE THE AMOUNT OF BAD DEBT EXPENSE, AT COST, BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENT ACCOUNTS WAS MULTIPLIED BY A RATIO OF COST TO CHARGES. THE RATIO OF COST TO CHARGES USED WAS BASED ON DETAILED COST ACCOUNTING, WHERE AVAILABLE. WHERE COST ACCOUNTING IS NOT AVAILABLE, COST REPORT COST TO CHARGE RATIOS WERE UTILIZED.
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FORM 990, SCHEDULE H, PART III, SECTION A, LINE 3
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THE FILING ORGANIZATION DETERMINED THAT THE ESTIMATED AMOUNT OF BAD DEBT EXPENSE (AT COST) ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S CHARITY CARE POLICY IS $0. ALTHOUGH THE CHARITY CARE POLICY REQUIRES THE PARTICIPATION OF THE PATIENT REQUESTING ASSISTANCE, WE HAVE A PROCESS UNDER PRESUMPTIVE CHARITY TO ADDRESS ACCOUNTS FOR PATIENTS WHO DO NOT PROVIDE THE INFORMATION. WE BELIEVE THAT OUR CHARITY POLICY IS COMPREHENSIVE ENOUGH TO CAPTURE ALMOST ALL PATIENTS WHO QUALIFY FOR CHARITY CARE.
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FORM 990, SCHEDULE H, PART III, SECTION A, LINE 4
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THE TEXT OF THE FOOTNOTE THAT IS INCLUDED IN MERCY HEALTH AND SUBSIDIARIES AUDITED FINANCIAL STATEMENTS THAT DESCRIBES BAD DEBT EXPENSE IS AS FOLLOWS: "PATIENT ACCOUNTS RECEIVABLE THAT ARE DEEMED UNCOLLECTIBLE, INCLUDING THOSE PLACED WITH COLLECTION AGENCIES, ARE INITIALLY CHARGED AGAINST THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS IN ACCORDANCE WITH COLLECTION POLICIES OF THE HEALTH SYSTEM AND, IN CERTAIN CASES, ARE RECLASSIFIED TO CHARITY CARE IF DEEMED TO OTHERWISE MEET THE HEALTH SYSTEMS CHARITY CARE POLICY. THE PROVISION FOR UNCOLLECTIBLE RECEIVABLES IS BASED UPON MANAGEMENTS ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. PERIODICALLY THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES BASED UPON THE PAYOR COMPOSITION AND AGING OF RECEIVABLES WITH CONSIDERATION OF THE HISTORICAL PAYMENT AND WRITE-OFF EXPERIENCE BY PAYOR CATEGORY. THE RESULTS OF THESE REVIEWS ARE THEN USED TO MAKE ANY MODIFICATIONS TO THE PROVISION FOR UNCOLLECTIBLE RECEIVABLES TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES. AFTER SATISFACTION OF AMOUNTS DUE FROM INSURANCE, THE HEALTH SYSTEM FOLLOWS ESTABLISHED GUIDELINES FOR PLACING PAST-DUE PATIENT BALANCES WITH COLLECTION AGENCIES."
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FORM 990, SCHEDULE H, PART III, SECTION B, LINE 8
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IT IS THE POSITION OF MERCY THAT 100% OF ANY SHORTFALL SHOULD BE TREATED AS COMMUNITY BENEFIT. THIS AMOUNT REPRESENTS COST OF PROVIDING SERVICES THAT REMAIN UNCOMPENSATED TO THE PROVIDER. THE UNREIMBURSED COSTS OF MEDICARE IS CALCULATED BY THE GROSS CHARGES NET OF THE COST TO CHARGE RATIO LESS ANY PAYMENTS, DEDUCTIONS OR REIMBURSEMENTS USING THE ANNUAL MEDICARE COST REPORT (CMS FORM 2552-96).
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FORM 990, SCHEDULE H, PART III, SECTION C, LINE 9B
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MERCYS COLLECTION POLICY PROVIDES THAT MERCY WILL PERFORM A REASONABLE COMMUNICATION AND/OR REVIEW OF PATIENT ACCOUNTS AS IT RELATES TO ANY SERVICE PROVIDED AT OUR FACILITIES BEFORE TURNING THE ACCOUNT TO BAD DEBT OR TAKING LEGAL ACTION FOR NONPAYMENT. MERCY ACTIVELY SCRUBS ACCOUNTS FOR PAYOR PLAN COVERAGE, INCLUDING MEDICAID. IN THE EVENT AN ACCOUNT IS TURNED TO COLLECTIONS AND IS IDENTIFIED IN NEED OF FINANCIAL ASSISTANCE DUE TO CIRCUMSTANCE CHANGES, OR IS NOW REQUESTING ASSISTANCE, THE ACCOUNTS ARE RETURNED BY THE AGENCY AND CONSIDERED FOR CHARITY IF THE PATIENT PROVIDES THE REQUESTED INFORMATION. IF THE PATIENT FAILS TO RETURN THE INFORMATION, THE ACCOUNT WILL QUALIFY FOR COLLECTIONS. MERCY UTILIZES THE EXPERIAN TOOL TO ENHANCE THE ABILITY TO DETERMINE THE CHARITY QUALIFICATION PRIOR TO TURNING TO BAD DEBT, A PROCESS KNOWN AS PRESUMPTIVE CHARITY. MERCY WILL GRANT CHARITY IN SITUATIONS WHERE THERE HAS BEEN AN INABILITY TO OBTAIN INFORMATION FROM PATIENTS OR THE INFORMATION PROVIDED IS NOT COMPLETE ENOUGH TO MAKE A CHARITY DETERMINATION WHEN A PATIENT HAS SUBMITTED AN APPLICATION. IN ADDITION, MERCY UTILIZES THE SAME TOOL TO QUALIFY ACCOUNTS PER THE PRACTICE OF PRESUMPTIVE CHARITY PRIOR TO BAD DEBT PLACEMENT FOR BALANCES IN EXCESS OF $6,500. ALL ACCOUNT BALANCES RELATING TO ACCOUNTS IDENTIFIED BY THE HIGHER BALANCES WILL BE CONSIDERED AND FLAGGED FOR CHARITY IF THERE IS AN INABILITY TO PAY AFTER A RETURN FROM THE COLLECTION AGENCY AT APPROXIMATELY 120 DAYS. MERCY WILL PURSUE APPROPRIATE MEANS IN THE COLLECTION OF DELINQUENT ACCOUNTS FROM PATIENTS WITH AN ESTABLISHED ABILITY TO PAY OR AN UNWILLINGNESS TO COOPERATE IN VALIDATING ELIGIBILITY FOR FINANCIAL ASSISTANCE. THESE APPROPRIATE MEANS MAY INCLUDE LEGAL ACTION CONSISTENT WITH MERCY MISSION AND VALUES AFTER A SENDING 3 MONTHLY STATEMENTS WITH THE FINAL INCLUDING NOTIFICATION; IF NO RESOLUTION THEY WILL BE TURNED TO COLLECTIONS. ADDITIONALLY, THEY MAY INCLUDE LIENS UPON REAL PROPERTY AND REASONABLE WAGE GARNISHMENTS. LEGAL ACTIONS WILL GENERALLY NOT INCLUDE BANK GARNISHMENTS, REPOSSESSION OF ASSETS OR FORECLOSURES TO ENSURE SATISFACTION OF A LIEN. MERCY HAS POLICIES AND PROCEDURES ESTABLISHED TO ADDRESS THE INITIATION OF LEGAL ACTION AND ANNUALLY REVIEW COMPLIANCE WITH POLICIES BUT ENSURE 120 DAYS OF BILLING AND COLLECTIONS OCCURS PRIOR TO ANY EXTRAORDINARY COLLECTIONS ARE PURSUED.
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FORM 990, SCHEDULE H, PART VI, LINE 2
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IN ADDITION TO OUR COLLABORATION WITH THE OZARKS HEALTH COMMISSION FOR OUR RECENT CHNA, MERCY COLUMBUS CONTINUES TO PLAY AN INTEGRAL PART IN THE JOPLIN COMMUNITY HEALTH COLLABORATIVE, TO ASSESS THE HEALTH CARE NEEDS OF THE REGION. MERCY COLUMBUS ALSO EXAMINES THE CURRENT HEALTH NEEDS AND COMPARES THEM TO RECENT HOSPITAL PATIENT VISIT DATA IN THE EMERGENCY DEPARTMENT, AND COUNTY HEALTH RANKINGS. NEXT, A REPRESENTATIVE FROM MERCY COLUMBUS SERVES ON A COMMUNITY BENEFIT SUB-COMMITTEE (ROUNDTABLE DISCUSSIONS) IN AN EFFORT TO GAIN INPUT FROM COMMUNITY MEMBERS. WE THEN ANALYZE THE CURRENT DATA TO PRIORITIZE NEW OR EXISTING NEEDS, REVIEW CURRENT ACTIVITIES IN PLACE, AND THEN END WITH CREATING AN ACTION PLAN IN COLLABORATION WITH THE COMMUNITY.
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FORM 990, SCHEDULE H, PART VI, LINE 3
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MERCY INFORMS AND EDUCATES PATIENTS AND PERSONS WHO MAY BE BILLED FOR PATIENT CARE ABOUT THEIR ELIGIBILITY FOR ASSISTANCE UNDER FEDERAL, STATE, OR LOCAL GOVERNMENT PROGRAMS OR UNDER THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY THROUGH SEVERAL MEANS. IF AT ANY TIME A PATIENT EXPRESSES HARDSHIP AND INABILITY TO PAY, THE ACCOUNTS IS PLACED FOR REVIEW. IN ADDITION, PATIENT HAVE SIGNAGE ABOUT THE POLICY AT THE ACCESS POINTS, AND ALL STAFF WORKING WITH THE PATIENT AT POINT OF SERVICE, SCHEDULING, CUSTOMER SERVICE, AND EVEN THROUGH THE MEDICAID ELIGIBILITY SCREENING, HAVE THE MEANS TO SEND THE ACCOUNT FOR REVIEW. THERE IS THE PLAIN LANGUAGE SUMMARY THAT IS BEING PROVIDED TO ALL WHOM EXPRESS HARDSHIP, IN ADDITION TO THE WEB ADDRESS PROVIDING THE APPLICATION, POLICIES, AND EVEN HOW UNINSURED ACCOUNTS ARE HANDLED. LASTLY, THE STATEMENTS MESSAGE TO THE PATIENT THAT MERCY DOES HAVE A FINANCIAL ASSISTANCE PROGRAM AND TO CALL TO SEE IF THEY ARE ELIGIBLE. MERCY STAFFS INTERNAL RESOURCES CERTIFIED TO ASSIST PATIENTS WITH MEDICAID APPLICATIONS AS WELL.
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FORM 990, SCHEDULE H, PART VI, LINE 4
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MERCY HOSPITAL COLUMBUS PRIMARY SERVICE AREA INCLUDES CHEROKEE COUNTY IN SOUTHEAST KANSAS. THE FOLLOWING INFORMATION IS DERIVED FROM 2016 Sg2 ANALYTICS DATA AND Sg2 INSURANCE COVERAGE ESTIMATES. THE AREA'S POPULATION IS 21,225. 24% OF THE POPULATIONS AVERAGE HOUSEHOLD INCOME IS OVER $75,000. 46% OF THE POPULATION IS 45 AND OLDER. 28% OF HOUSEHOLDS ARE ON MEDICARE, 17% ON MEDICAID, AND 12% UNINSURED.
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FORM 990, SCHEDULE H, PART VI, LINE 5
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TO CONTINUE PROMOTING COMMUNITY HEALTH, MERCY COLUMBUS COLLABORATES WITH COMMUNITY LEADERS INVOLVED IN IDENTIFYING COMMUNITY HEALTH NEEDS TO RESOLVE LOCAL HEALTH CHALLENGES. OUR EFFORTS IN COMMUNITY BENEFIT FOCUS ON IMPLEMENTING PROGRAMS TO TACKLE UNHEALTHY BEHAVIORS RESULTING IN IMPROVED HEALTH STATUS. SOME PROGRAMS WERE ACCOMPLISHED IN PARTNERSHIP WITH OTHERS, WHILE WE SELECTED SPECIFICALLY BECAUSE MERCY HOSPITAL COLUMBUS HAD AN EXPERTISE TO OFFER, AND THE CLINICAL ABILITY TO MANAGE THE NATURE OF ITS OPERATION. MERCY HOSPITAL COLUMBUS HAS PARTICULAR CONCERN FOR THE VULNERABLE AND UNDERSERVED. OUR MISSION IS TO DELIVER "COMPASSIONATE CARE AND EXCEPTIONAL SERVICE" TO EVERY COMMUNITY MEMBER. IN DEDICATION TO THIS MISSION, MERCY AND THE COLUMBUS BOARD OF TRUSTEES, HAS BEEN ABLE TO CREATE A SHARED ENVIRONMENT IN WHICH THE COMMUNITY CAN FLOURISH. THE TARGET AREAS OF THIS COLLABORATION ARE PHYSICAL HEALTH WITHIN LOCAL SCHOOLS AND HUMAN SERVICES. COMMUNITY LEADERS MEET ON A REGULAR BASIS TO ASSESS, IDENTIFY, AND EVALUATE PROGRAMS THAT MEET THE NEEDS OF THE UNDERSERVED POPULATION. IT IS OUR HOPE THAT THE WORK THAT IS ACCOMPLISHED THROUGH THESE COLLABORATIONS, WILL LEAD TO BETTER HEALTH AND HUMAN SERVICES FOR THE COLUMBUS COMMUNITY.
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FORM 990, SCHEDULE H, PART VI, LINE 6
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AFFILIATED HEALTH CARE SYSTEM: THE FILING ORGANIZATION IS PART OF MERCY HEALTH ("MERCY"). MERCY IS A MISSOURI NON-PROFIT CORPORATION WITH ITS HEADQUARTERS ("MINISTRY OFFICE") IN ST. LOUIS, MISSOURI. MERCY PROVIDES HEALTH CARE SERVICES IN FOUR STATES - ARKANSAS, KANSAS, MISSOURI, AND OKLAHOMA - AND HAS OUTREACH MINISTRIES LOCATED IN LOUISIANA, MISSISSIPPI, AND TEXAS. MERCY'S MISSION IS "AS THE SISTERS OF MERCY BEFORE US, WE BRING TO LIFE THE HEALING MINISTRY OF JESUS THROUGH OUR COMPASSIONATE CARE AND EXCEPTIONAL SERVICE." AS OF JUNE 30, 2016, MERCY FACILITIES INCLUDED 33 ACUTE CARE HOSPITALS, 3 MANAGED HOSPITALS, 4 HEART HOSPITALS, 2 CHILDREN'S HOSPITALS, 2 ORTHOPEDIC HOSPITALS AND 3 REHAB HOSPITALS. FOR THE FISCAL YEAR ENDED JUNE 30, 2016, MERCY HAD MORE THAN 9.2 MILLION OUTPATIENT AND PHYSICIAN OFFICE VISITS, APPROXIMATELY 2,100 EMPLOYED PHYSICIANS, AND APPROXIMATELY 40,000 FULL-TIME EQUIVALENT EMPLOYEES, MAKING MERCY THE FIFTH LARGEST CATHOLIC HEALTH SYSTEM IN THE UNITED STATES. MERCY IS SPONSORED BY MERCY HEALTH MINISTRY, WHICH IS GOVERNED BY MEMBERS THAT INCLUDE SISTERS OF MERCY. MANY SERVICES THAT ARE ESSENTIAL TO FULFILLING MERCY'S MISSION ARE CENTRALIZED AT THE MINISTRY OFFICE. SUCH CENTRALIZED SERVICES INCLUDE TREASURY, INFORMATION TECHNOLOGY, CLINICAL QUALITY MANAGEMENT, LEGAL AND COMPLIANCE COUNSEL, COMPENSATION AND BENEFITS, CONSULTING, PERFORMANCE MANAGEMENT, REVENUE MANAGEMENT, INTERNAL AUDIT, ACCOUNTING AND REPORTING, CAPITAL MANAGEMENT, CLINICAL ENGINEERING, AND CLINICAL SAFETY. THE CENTRALIZATION OF SUCH SUPPORT SERVICES ENABLES MERCY TO ENSURE THAT EACH OF ITS COMMUNITIES, WHETHER LARGE OR SMALL, HAS THE SERVICES IT NEEDS.
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FORM 990, SCHEDULE H, PART VI, LINE 7
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STATE FILING OF COMMUNITY BENEFIT REPORT: N/A.
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