Penobscot Bay Medical Center

What it reported doing in 2018

Inpatient & Outpatient Hospital Care: Penobscot Bay Medical Center (PBMC) provides quality medical care regardless of race, creed, sex, national origin, handicap or ability to pay. Although reimbursement for services rendered is critical to the operation and stability of PBMC, not all individuals possess the ability to purchase essential medical services. Our mission is to serve the community by providing health care services and health care education. In keeping with this hospital's commitment to serve all members of its community, we provide free care and subsidized care to persons covered by governmental programs below cost, and health activities and programs for the community. (Continued at Schedule O)(Continued from Part III, Line 4a)PBMC served 881 inpatients, including newborns and 47,343 outpatients including ER visits, during the short period. Twenty-four-hour medical emergency service is provided in the Emergency Room, staffed by full-time attending physicians. Patients are seen regardless of ability to pay. There were 4,654 visits to the Emergency Room during the short period. Recognizing its mission to the community, services are provided to both Medicare & MaineCare patients. To the extent reimbursement is below cost, PBMC recognizes these amounts as contractual adjustments. For the short period, the amount of unreimbursed costs reported as contractual adjustments totaled $43,255,621. During the short period, approximately 65% of services were to patients covered by these governmental programs. Additionally, PBMC provided $1,963,771 in free care to patients not covered by governmental programs. PBMC provides free conference room and meeting space for a variety of health related groups including Alcoholics Anonymous, Al Anon, Midcoast Cancer Support Group, Heart to Heart, Cardiac Spouse Support Group, Crohn's Disease Support Group, Visually Impaired and Blind Support Group, Pediatric Asthma Support Group, Ostomy Group, Midcoast Mastectomy Support Group, Northeast Health Consortium for Integrated Care, Breast Cancer Intervention Project, Mid-Coast Coalition for Domestic Abuse, Teen parenting, Women's and Children's Community Care Project. Assistance is provided to educators through our work with medical students, student nurses, physical therapy interns, emergency medical technicians, medical records and social service students.Through an arrangement with the University of Maine - Orono, our Education and Training department offers nurses with certificate degrees the opportunity to work toward a baccalaureate degree in the local area. The hospital maintains a research library which is open twenty-four-hours a day and available to the general public. During the short period, the community contributed approximately 1,533 hours toward the common purpose of servicing the health care needs of the community. The value of this contribution is given back to the community through lower costs in both patient services and other wellness programs such as those described above.

Financial Efficiency

• Mission deployment rate: 91.6%; rating input score 92
• Program expense ratio: 95.5%; rating input score 96
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
• Pay-setting controls: 0 of 6 controls in place; rating input score 0
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Missing
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: No; rating input score 0
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 75%; rating input score 75; 14th percentile among comparable filings
• Governance controls: 7 of 9 controls in place; rating input score 78
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Missing
  • Independent financial-statement audit: Fail

Sustainability

• Operating margin: 4.1%; rating input score 56; 56th 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: 6.9%; rating input score 29; 29th percentile among comparable filings

Growth

• Program expense growth: -8.5% per year; rating input score 0; 3rd percentile among comparable filings
• Revenue growth: -2.7% per year; rating input score 0; 6th percentile among comparable filings
• Asset growth: -3.7% per year; rating input score 0; 8th percentile among comparable filings