Baptist Health

What it reported doing in 2013

Baptist Healthcare Affiliates (BHA), d/b/a Baptist Hospital Northeast is a 100% owned and controlled subsidiary of Baptist Healthcare System, Inc. Since its inception in 1924, Baptist Healthcare System, Inc. and its affiliated organizations (Baptist) are dedicated to providing accessible, quality healthcare to all patients regardless of their ability to pay. VISION The vision of BHA is to be the healthcare leader in Kentucky. Having earned a reputation of providing high quality patient care and utilizing the latest in medical technology, patients seek out the BHA facility for their care. BHA Statistics Licensed Beds 120 Beds Employees 454 Employees Admitting Physicians 68 Doctors Inpatient Care 2,644 Admissions/14,974 Days Obstetric (Deliveries) 488 Babies Emergency Visits 14,160 Registrations Outpatient Visits 114,528 Hospital Visits Cancer Treatments 106,707 Treatments Surgeries 3,612 Cases MISSION As indicated by its mission statement, BHA strives to continue its "Christian heritage of service and to enhance the health of the people and the communities we serve." BHA is organized and operated exclusively for the benefit of the community and the hospital is considered a valuable community asset. The BHA Board of Directors is comprised of local representatives who, along with the hospital's management and employees, understand that they are responsible to the community for providing high quality health care services. Over the years, BHA has gained a reputation for providing compassionate, high quality, cost efficient, patient friendly care. RESPONSIVE TO COMMUNITY NEED Operating healthcare facilities in today's environment requires a delicate balance between producing a sufficient margin to allow for adequate staffing and investment in new technologies, while also providing enough resources to absorb the cost of care for those patients who do not have the ability to pay for the services. In 2014, BHA invested nearly $2.9 million into the communities in new technology, construction, renovation and systems improvement. Because of the need to generate a modest margin while caring for all patients, BHA strives to fulfill its community responsibility of collecting appropriate reimbursement from all patients who have the necessary resources while providing a generous, yet accountable charity care policy to assist those patients who do not have the means to pay for the services rendered. From a broad perspective, BHA consistently provides a high level of quality care to every patient and enhances the health of the people it serves through health promotions, health screenings, medical research, and training of health professionals. Other community benefits include: - Maintaining necessary, but unprofitable services that meet community needs - Helping to recruit physicians to underserved areas - Helping patients coordinate services with other healthcare providers - Providing resources for support groups - Promoting and providing preventive care services - Monitoring clinical outcomes in order to ensure quality care - Committing resources to improving safety and processes of care - Providing services conveniently accessible by patients In addition, BHA employees volunteer hundreds of hours in community services and leadership. BHA's support for community activities underscores its commitment to improving the lives of those served. Because BHA and its employees contribute so much of their time, talents and resources to serve others, communities served by BHA are better places to live and work. Quantification of many of the community benefits is detailed on Schedule H. However, what the Statement of Program Service Accomplishments does not measure is the economic benefit derived by the community from BHA being one of the major employers in the area. The economic impact of the wages paid to BHA employees is significant considering the dollars they spend on food, housing, services, and other products. ACCOUNTABILITY TO THE BROADER COMMUNIT

Financial Efficiency

• Mission deployment rate: 68%; rating input score 68
• Program expense ratio: 88.9%; rating input score 89
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 84.6%; rating input score 85; 0th percentile among comparable filings
• Pay-setting controls: 1 of 6 controls in place; rating input score 17
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: 17.2%; rating input score 17; 6th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 100%; rating input score 100; 84th percentile among comparable filings
• Governance controls: 8 of 9 controls in place; rating input score 89
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Fail
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 23.5%; rating input score 92; 92nd percentile among comparable filings
• Total-asset coverage ratio: 0; rating input score 0; 0th percentile among comparable filings
• Liabilities to assets ratio: Limited
• Officer compensation ratio: 2.2%; rating input score 48; 48th percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: 16.1% per year; rating input score 100; 90th percentile among comparable filings
• Asset growth: -25.4% per year; rating input score 0; 1st percentile among comparable filings