TY 2014 Form 990

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) KATHLEEN D BROOKS MD MBA MPA........................................................................ CHAIRMAN	1.00 .......................	X	X
(2) GARY WINGROVE EMS........................................................................ VICE CHAIR	1.00 .......................	X	X
(3) CRAIG SVENDSEN MD........................................................................ SECRETARY	1.00 .......................	X	X
(4) CLINT MACKINNEY........................................................................ PAST SECRETARY - UNTIL DEC 2014	1.00 .......................	X	X
(5) BETH MONSRUD CPA........................................................................ TREASURER	1.00 .......................	X	X
(6) WILLIAM JACOTT........................................................................ IMMEDIATE PAST CHAIR - UNTIL DEC 2014	1.00 .......................	X
(7) DONNA ANDERSON MPH........................................................................ DIRECTOR	1.00 .......................	X
(8) CONNIE W DELANEY PHD RN FAAN FAC........................................................................ DIRECTOR	1.00 .......................	X
(9) MYRON FALKEN PHD MPH MS RS RN........................................................................ DIRECTOR	1.00 .......................	X
(10) HUDA FARAH MSC........................................................................ DIRECTOR	1.00 .......................	X
(11) RENEE FRAUENDIENST RN BSN........................................................................ DIRECTOR - AS OF JAN 2015	1.00 .......................	X
(12) KEN JOHNSON MBA........................................................................ DIRECTOR	1.00 .......................	X
(13) STEPHEN KOLAR MD FACP........................................................................ DIRECTOR - AS OF JAN 2015	1.00 .......................	X
(14) MARY JO KREITZER PHD RN FAAN........................................................................ DIRECTOR	1.00 .......................	X
(15) JAN MALCOLM........................................................................ DIRECTOR	1.00 .......................	X
(16) MICHAEL SPILANE........................................................................ DIRECTOR - UNTIL DEC 2014	1.00 .......................	X
(17) STELLA WHITNEY-WEST MBA........................................................................ DIRECTOR	1.00 .......................	X

Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII.	(A) Total expenses	(B) Program service expenses	(C) Management and general expenses	(D) Fundraising expenses
1	Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21 ....	7,986,952	7,986,952
2	Grants and other assistance to domestic individuals. See Part IV, line 22 ....
3	Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 ............
4	Benefits paid to or for members ....
5	Compensation of current officers, directors, trustees, and key employees ....	426,371	24,451	401,920
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....
7	Other salaries and wages ....	4,147,680	2,627,876	1,519,804
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	164,353	103,139	61,214
9	Other employee benefits .......	1,382,837	818,112	564,725
10	Payroll taxes ...........	346,258	202,230	144,028
11	Fees for services (non-employees):
a	Management ......
b	Legal .........	4,715	158	4,557
c	Accounting ...........	22,944		22,944
d	Lobbying ...........
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......	33,000		33,000
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ....	877,616	669,930	207,686
12	Advertising and promotion ....	3,380	3,380
13	Office expenses .......	225,736	158,682	67,054
14	Information technology ......
15	Royalties ..
16	Occupancy ...........	563,258	67,317	495,941
17	Travel ............	141,958	88,854	53,104
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....	102,227	102,227
20	Interest ...........
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	166,846	130,097	36,749
23	Insurance ..............	46,054		46,054
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a	DUES & SUBSCRIPTIONS	76,217	43,774	32,443
b	TRAINING & RECRUITING	47,878	24,279	23,599
c	DATA PROCESSING	42,102	25,165	16,937
d	BAD DEBT	4,387		4,387
e	All other expenses	366,914	161,414	205,500
25	Total functional expenses. Add lines 1 through 24e	17,179,683	13,238,037	3,941,646	0
26	Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720).

Part X Balance Sheet Check if Schedule O contains a response or note to any line in this Part X ..............
	1	Cash–non-interest-bearing .............	1,714,405	1	1,033,132
2	Savings and temporary cash investments .........		2
3	Pledges and grants receivable, net ...........	947,997	3	1,611,721
4	Accounts receivable, net .............	147,726	4	389,287
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
			5
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
			6
7	Notes and loans receivable, net .............		7
8	Inventories for sale or use ..............		8
9	Prepaid expenses and deferred charges ..........	67,469	9	85,020
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	2,463,592
b	Less: accumulated depreciation .....	10b	2,072,874	547,243	10c	390,718
11	Investments—publicly traded securities ..........	5,265,680	11	4,331,693
12	Investments—other securities. See Part IV, line 11 .....		12
13	Investments—program-related. See Part IV, line 11 .....		13
14	Intangible assets ...............		14
15	Other assets. See Part IV, line 11 ...........		15
16	Total assets. Add lines 1 through 15 (must equal line 34)......	8,690,520	16	7,841,571
	17	Accounts payable and accrued expenses .........	1,331,530	17	1,653,164
18	Grants payable .................		18
19	Deferred revenue ................	800,219	19	424,244
20	Tax-exempt bond liabilities .............		20
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..	254,478	23	182,638
24	Unsecured notes and loans payable to unrelated third parties ....		24
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................	23,972	25	15,819
26	Total liabilities. Add lines 17 through 25.........	2,410,199	26	2,275,865
		Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............	6,280,321	27	5,565,706
28	Temporarily restricted net assets ...........		28
29	Permanently restricted net assets ...........		29
	Organizations that do not follow SFAS 117 (ASC 958), check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds ........		30
31	Paid-in or capital surplus, or land, building or equipment fund .....		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances ...........	6,280,321	33	5,565,706
34	Total liabilities and net assets/fund balances ........	8,690,520	34	7,841,571

- TIN:

SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section 4947(a)(1) nonexempt charitable trust.
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Attach to Form 990 or Form 990-EZ.
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Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization

STRATIS HEALTH

Employer identification number

41-0971557

Part I

Reason for Public Charity Status (All organizations must complete this part.) See instructions.

The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)

A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i).

A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.)

A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii).

A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state:

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in

section 170(b)(1)(A)(iv). (Complete Part II.)

A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.)

A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.)

An organization that normally receives: (1) more than 331/3% of its support from contributions, membership fees, and gross

receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of

its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses

acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)

An organization organized and operated exclusively to test for public safety. See section 509(a)(4).

An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box in lines 11a through 11d that describes the type of supporting organization and complete lines 11e, 11f, and 11g.

Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must complete Part IV, Sections A and B.

Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C.

Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E.

Type III non-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V.

Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization.

Enter the number of supported organizations .............................

Provide the following information about the supported organization(s).

(i)Name of supported organization	(ii) EIN	(iv) Is the organization listed in your governing document?		(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)
(i)Name of supported organization	(ii) EIN	Yes	No	(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)


Total

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2014

Page 2

Part II

Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)

Section A. Public Support

Calendar year (or fiscal year beginning in)		(a) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public support. Subtract line 5 from line 4.

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(f) Total
7	Amounts from line 4..
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources...
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.)..
11	Total support Add lines 7 through 10.

Gross receipts from related activities, etc. (see instructions) ..................

First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here........................................ right arrow

Section C. Computation of Public Support Percentage

Public support percentage for 2014 (line 6, column (f) divided by line 11, column (f)) .........

Public support percentage for 2013 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2014. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ....................... right arrow

33 1/3% support test—2013. If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2014. If the organization did not check a box on line 13, 16a, or 16b, and line 14
is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain
in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization ..................................................... right arrow

10%-facts-and-circumstances test—2013. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line
15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here.
Explain in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly
supported organization ................................................ right arrow

Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see
instructions ..................................................... right arrow

Schedule A (Form 990 or 990-EZ) 2014

Page 3

Part III

Support Schedule for Organizations Described in Section 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)

Section A. Public Support

Calendar year (or fiscal year beginning in)		(a) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......	8,707,440	10,076,790	11,415,991	12,092,493	16,248,307	58,541,021
3	Gross receipts from activities that are not an unrelated trade or business under section 513..
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.	8,707,440	10,076,790	11,415,991	12,092,493	16,248,307	58,541,021
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...						0
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.			4,492,347	4,908,783	10,874,693	20,275,823
c	Add lines 7a and 7b..			4,492,347	4,908,783	10,874,693	20,275,823
8	Public support (Subtract line 7c from line 6.)						38,265,198

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(f) Total
9	Amounts from line 6...	8,707,440	10,076,790	11,415,991	12,092,493	16,248,307	58,541,021
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..	174,362	133,128	226,326	176,565	248,488	958,869
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.	174,362	133,128	226,326	176,565	248,488	958,869
11	Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) ..
13	Total support. (Add lines 9, 10c, 11, and 12.)..	8,881,802	10,209,918	11,642,317	12,269,058	16,496,795	59,499,890

First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization,
check this box and stop here............................................. right arrow

Section C. Computation of Public Support Percentage

Public support percentage for 2014 (line 8, column (f) divided by line 13, column (f)) .........

64.310 %

Public support percentage from 2013 Schedule A, Part III, line 15 ...............

79.280 %

Section D. Computation of Investment Income Percentage

Investment income percentage for 2014 (line 10c, column (f) divided by line 13, column (f)) ......

1.610 %

Investment income percentage from 2013 Schedule A, Part III, line 17 .............

1.660 %

19a

33 1/3% support tests—2014. If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization ....... right arrow

33 1/3% support tests—2013. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions .... right arrow

Schedule A (Form 990 or 990-EZ) 2014

Page 4

Part IV

Supporting Organizations

(Complete only if you checked a box on line 11 of Part I. If you checked 11a of Part I, complete Sections A and B. If you checked 11b of Part I, complete Sections A and C. If you checked 11c of Part I, complete Sections A, D, and E. If you checked 11d of Part I, complete Sections A and D, and complete Part V.)

Section A. All Supporting Organizations

Yes

Are all of the organization’s supported organizations listed by name in the organization’s governing documents?
If "No," describe in Part VI how the supported organizations are designated. If designated by class or purpose,
describe the designation. If historic and continuing relationship, explain.

Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If "Yes," explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2).

Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If "Yes," answer (b) and (c) below.

Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If "Yes," describe in Part VI when and how the organization made the determination.

Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? If "Yes," explain in Part VI what controls the organization put in place to ensure such use.

Was any supported organization not organized in the United States ("foreign supported organization")? If “Yes” and if you checked 11a or 11b in Part I, answer (b) and (c) below.

Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If “Yes,” describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations....

Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If “Yes,” explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes.

Did the organization add, substitute, or remove any supported organizations during the tax year? If “Yes,” answer (b) and (c) below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed, (ii) the reasons for each such action, (iii) the authority under the organization's organizing document authorizing such action, and (iv) how the action was accomplished (such as by amendment to the organizing document).

Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization's organizing document?

Substitutions only. Was the substitution the result of an event beyond the organization's control?

Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (a) its supported organizations; (b) individuals that are part of the charitable class benefited by one or more of its supported organizations; or (c) other supporting organizations that also support or benefit one or more of the filing organization’s supported organizations? If “Yes,” provide detail in Part VI.

Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (defined in IRC 4958(c)(3)(C)), a family member of a substantial contributor, or a 35-percent controlled entity with regard to a substantial contributor? If “Yes,” complete Part I of Schedule L (Form 990) .

Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If “Yes,” complete Part II of Schedule L (Form 990).

Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If “Yes,” provide detail in Part VI.

Did one or more disqualified persons (as defined in line 9(a)) hold a controlling interest in any entity in which the supporting organization had an interest? If “Yes,” provide detail in Part VI.

Did a disqualified person (as defined in line 9(a)) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If “Yes,” provide detail in Part VI.

10a

Was the organization subject to the excess business holdings rules of IRC 4943 because of IRC 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer b below.

10a

Did the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings).

10b

Has the organization accepted a gift or contribution from any of the following persons?

A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization?

11a

A family member of a person described in (a) above?

11b

A 35% controlled entity of a person described in (a) or (b) above? If “Yes” to a, b, or c, provide detail in Part VI.

11c

Schedule A (Form 990 or 990-EZ) 2014

Page 5

Part IV

Supporting Organizations (continued)

Section B. Type I Supporting Organizations

Yes

Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization’s directors or trustees at all times during the tax year? If “No,” describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization’s activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year.

Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If “Yes,” explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised or controlled the supporting organization.

Section C. Type II Supporting Organizations

Yes

Were a majority of the organization’s directors or trustees during the tax year also a majority of the directors or trustees of each of the organization’s supported organization(s)? If “No,” describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s).

Section D. All Type III Supporting Organizations

Yes

Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization’s tax year, (1) a written notice describing the type and amount of support provided during the prior tax year, (2) a copy of the Form 990 that was most recently filed as of the date of notification, and (3) copies of the organization’s governing documents in effect on the date of notification, to the extent not previously provided?

Were any of the organization’s officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If "No," explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s).

By reason of the relationship described in (2), did the organization’s supported organizations have a significant voice in the organization’s investment policies and in directing the use of the organization’s income or assets at all times during the tax year? If "Yes," describe in Part VI the role the organization’s supported organizations played in this regard.

Section E. Type III Functionally-Integrated Supporting Organizations

Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions):

The organization satisfied the Activities Test. Complete line 2 below.

The organization is the parent of each of its supported organizations. Complete line 3 below.

The organization supported a governmental entity. Describe in Part VI how you supported a government entity (see instructions)

Activities Test. Answer (a) and (b) below.

Yes

Did substantially all of the organization’s activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If "Yes," then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities.

Did the activities described in (a) constitute activities that, but for the organization’s involvement, one or more of the organization’s supported organization(s) would have been engaged in? If "Yes," explain in Part VI the reasons for the organization’s position that its supported organization(s) would have engaged in these activities but for the organization’s involvement.

Parent of Supported Organizations. Answer (a) and (b) below.

Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI.

Did the organization exercise a substantial degree of direction over the policies, programs and activities of each of its supported organizations? If "Yes," describe in Part VI the role played by the organization in this regard.

Schedule A (Form 990 or 990-EZ) 2014

Page 6

Part V – Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations

1. Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970. See instructions. All other Type III non-functionally integrated supporting organizations must complete Sections A through E.

	Section A - Adjusted Net Income		(A) Prior Year	(B) Current Year (optional)
1	Net short-term capital gain	1
2	Recoveries of prior-year distributions	2
3	Other gross income (see instructions)	3
4	Add lines 1 through 3	4
5	Depreciation and depletion	5
6	Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions)	6
7	Other expenses (see instructions)	7
8	Adjusted Net Income (subtract lines 5, 6 and 7 from line 4)	8

	Section B - Minimum Asset Amount		(A) Prior Year	(B) Current Year (optional)
1	Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year):	1
a	Average monthly value of securities	1a
b	Average monthly cash balances	1b
c	Fair market value of other non-exempt-use assets	1c
d	Total (add lines 1a, 1b, and 1c)	1d
e	Discount claimed for blockage or other factors (explain in detail in Part VI):
2	Acquisition indebtedness applicable to non-exempt use assets	2
3	Subtract line 2 from line 1d	3
4	Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions).	4
5	Net value of non-exempt-use assets (subtract line 4 from line 3)	5
6	Multiply line 5 by .035	6
7	Recoveries of prior-year distributions	7
8	Minimum Asset Amount (add line 7 to line 6)	8

	Section C - Distributable Amount		Current Year
1	Adjusted net income for prior year (from Section A, line 8, Column A)	1
2	Enter 85% of line 1	2
3	Minimum asset amount for prior year (from Section B, line 8, Column A)	3
4	Enter greater of line 2 or line 3	4
5	Income tax imposed in prior year	5
6	Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions)	6
7	Check here if the current year is the organization's first as a non-functionally-integrated Type III supporting organization (see instructions)

Schedule A (Form 990 or 990-EZ) 2014

Page 7

Section D - Distributions		Current Year
1 Amounts paid to supported organizations to accomplish exempt purposes
2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity
3 Administrative expenses paid to accomplish exempt purposes of supported organizations
4 Amounts paid to acquire exempt-use assets
5 Qualified set-aside amounts (prior IRS approval required)
6 Other distributions (describe in Part VI). See instructions
7Total annual distributions. Add lines 1 through 6.
8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions
9 Distributable amount for 2014 from Section C, line 6
10 Line 8 amount divided by Line 9 amount

Section E - Distribution Allocations (see instructions)		(i) Excess Distributions	(ii) Underdistributions Pre-2014	(iii) Distributable Amount for 2014
1 Distributable amount for 2014 from Section C, line 6
2 Underdistributions, if any, for years prior to 2014 (reasonable cause required--see instructions)
3 Excess distributions carryover, if any, to 2014:
a From 2009.......X
b From 2010.......X
c From 2011.......X
d From 2012.......X
e From 2013.......
fTotal of lines 3a through e
g Applied to underdistributions of prior years
h Applied to 2014 distributable amount
i Carryover from 2009 not applied (see instructions)
j Remainder. Subtract lines 3g, 3h, and 3i from 3f.
4Distributions for 2014 from Section D, line 7:
$
a Applied to underdistributions of prior years
b Applied to 2014 distributable amount
c Remainder. Subtract lines 4a and 4b from 4.
5 Remaining underdistributions for years prior to 2014, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions)
6 Remaining underdistributions for 2014. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions)
7 Excess distributions carryover to 2015. Add lines 3j and 4c.
8 Breakdown of line 7:
a From 2010.......X
b From 2011.......X
c From 2012.......X
d From 2013.......
e From 2014.......

Schedule A (Form 990 or 990-EZ) (2014)

Schedule A (Form 990 or 990-EZ) 2014

Page 8

Part VI

Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; Part III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 1c, 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line 1e; Part V Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Return Reference	Explanation

Schedule A (Form 990 or 990-EZ) 2014

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b.
SchDMd Bullet

Attach to Form 990.
Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

STRATIS HEALTH

Employer identification number

41-0971557

Part I

Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.

		(a) Donor advised funds	(b) Funds and other accounts
1	Total number at end of year .........
2	Aggregate value of contributions to (during year)
3	Aggregate value of grants from (during year)
4	Aggregate value at end of year ........

Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............

Yes No

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? ...................................

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e.g., recreation or education) Preservation of an historically important land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.


a	Total number of conservation easements .......................	2a
b	Total acreage restricted by conservation easements ..................	2b
c	Number of conservation easements on a certified historic structure included in (a) .....	2c
d	Number of conservation easements included in (c) acquired after 8/17/06, and not on a historic structure listed in the National Register ....................	2d

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax year SchDMd Bullet

Number of states where property subject to conservation easement is located SchDMd Bullet

Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................

Yes No

Staff and volunteer hours devoted to monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet

Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? .......................................

Yes No

In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.

If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIII, the text of the footnote to its financial statements that describes these items.

If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items:

(i)

Revenue included in Form 990, Part VIII, line 1 ........................ SchDMd Bullet

(ii)

Assets included in Form 990, Part X .............................. SchDMd Bullet

If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 (ASC 958) relating to these items:

Revenue included in Form 990, Part VIII, line 1 .......................... SchDMd Bullet

Assets included in Form 990, Part X ............................... SchDMd Bullet

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 52283D

Schedule D (Form 990) 2014

Page 2

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

Using the organization’s acquisition, accession, and other records, check any of the following that are a significant use of its collection items (check all that apply):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIII.

During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........

Yes No

Part IV

Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................

Yes No

If "Yes," explain the arrangement in Part XIII and complete the following table:


c	Beginning balance .................................	1c
d	Additions during the year ..............................	1d
e	Distributions during the year .............................	1e
f	Ending balance ...................................	1f

Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability?

Yes No

If "Yes," explain the arrangement in Part XIII. Check here if the explanation has been provided in Part XIII .......

Part V

Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.

		(a)Current year	(b)Prior year	b (c)Two years back	(d)Three years back	(e)Four years back
1a	Beginning of year balance ....
b	Contributions ........
c	Net investment earnings, gains, and losses
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........
f	Administrative expenses ....
g	End of year balance ......

Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as:

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

Temporarily restricted endowment SchDMd Bullet

The percentages in lines 2a, 2b, and 2c should equal 100%.

Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes

(i) unrelated organizations ........................

3a(i)

(ii) related organizations ........................

3a(ii)

If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........

Describe in Part XIII the intended uses of the organization's endowment funds.

Part VI

Land, Buildings, and Equipment. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11a. See Form 990, Part X, line 10.

Description of property		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................
b	Buildings ................
c	Leasehold improvements ............	416,930	301,188	115,742
d	Equipment ................	2,046,662	1,771,686	274,976
e	Other .................
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				390,718

Schedule D (Form 990) 2014

Page 3

Part VII

InvestmentsOther Securities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11b. See Form 990, Part X, line 12.

(a) Description of security or category (including name of security)		(b)Book value	(c) Method of valuation: Cost or end-of-year market value
(1)Financial derivatives
(2)Closely-held equity interests
Other








Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)

Part VIII

InvestmentsProgram Related. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11c. See Form 990, Part X, line 13.

(a) Description of investment		(b) Book value	(c) Method of valuation: Cost or end-of-year market value









Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)

Part IX

Other Assets. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11d. See Form 990, Part X, line 15.

(a) Description				(b) Book value









Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........

Part X

Other Liabilities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25.

1.(a) Description of liability		(b) Book value
Federal income taxes
CAPITAL LEASE PAYABLE		15,819








Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		15,819
2. Liability for uncertain tax positions. In Part XIII, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC 740). Check here if the text of the footnote has been provided in Part XIII

Schedule D (Form 990) 2014

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
1	Total revenue, gains, and other support per audited financial statements .......			1	16,248,594
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains (losses) on investments ....	2a	-31,727
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIII.) ............	2d
e	Add lines 2a through 2d .....................			2e	-31,727
3	Subtract line 2e from line 1.....................			3	16,280,321
4	Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b .	4a	33,000
b	Other (Describe in Part XIII.) ...........	4b	183,474
c	Add lines 4a and 4b.......................			4c	216,474
5	Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......			5	16,496,795

Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
1	Total expenses and losses per audited financial statements ...........			1	16,571,899
2	Amounts included on line 1 but not on Form 990, Part IX, line 25:
a	Donated services and use of facilities ..........	2a
b	Prior year adjustments ..............	2b
c	Other losses ................	2c
d	Other (Describe in Part XIII.) ............	2d
e	Add lines 2a through 2d......................			2e	0
3	Subtract line 2e from line 1.....................			3	16,571,899
4	Amounts included on Form 990, Part IX, line 25, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b ..	4a	33,000
b	Other (Describe in Part XIII.) ............	4b	574,784
c	Add lines 4a and 4b.......................			4c	607,784
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......			5	17,179,683

Part XIII

Supplemental Information

Provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.

Return Reference	Explanation
PART X, LINE 2:	THE ORGANIZATION IS EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, AS AMENDED. THE ORGANIZATION IS ALSO EXEMPT FROM MINNESOTA INCOME TAXES. THE ORGANIZATION REVIEWS INCOME TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN INCOME TAX RETURNS TO DETERMINE IF THERE ARE ANY INCOME TAX UNCERTAINTIES. THIS INCLUDES POSITIONS THAT THE ENTITY IS EXEMPT FROM INCOME TAXES OR NOT SUBJECT TO INCOME TAXES ON UNRELATED BUSINESS INCOME. THE ORGANIZATION RECOGNIZES TAX BENEFITS FROM UNCERTAIN TAX POSITIONS ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITIONS WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITIONS. THE ORGANIZATION HAS IDENTIFIED NO SIGNIFICANT INCOME TAX UNCERTAINTIES. THE ORGANIZATION FILES INFORMATION RETURNS AS A TAX-EXEMPT ORGANIZATION. SHOULD THAT STATUS BE CHALLENGED IN THE FUTURE, ALL YEARS SINCE INCEPTION COULD BE SUBJECT TO REVIEW BY THE IRS.
PART XI, LINE 4B - OTHER ADJUSTMENTS:	NONOPERATING INVESTMENT INCOME 183,474.
PART XII, LINE 4B - OTHER ADJUSTMENTS:	NONOPERATING EXPENSES 574,784.

Schedule D (Form 990) 2014

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

Grants and Other Assistance to Organizations,
Governments and Individuals in the United States

Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet

Attach to Form 990.
lBullet

Information about Schedule I (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization
STRATIS HEALTH

Employer identification number
41-0971557

Part I

General Information on Grants and Assistance

Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................

Yes No

Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.

Part II

Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21, for any recipient that received more than $5,000. Part II can be duplicated if additional space is needed.

(a) Name and address of organization or government	(b) EIN	(c) IRC section if applicable	(d) Amount of cash grant	(f) Method of valuation (book, FMV, appraisal, other)	(g) Description of non-cash assistance	(h) Purpose of grant or assistance
(1) MPRO 22670 HAGGERTY ROAD SUITE 100 FARMINGTON HILLS,MI48335	36-2536610	501(C)(3)	4,691,570	N/A	N/A	SUBRECIPIENT ON CMS CONTRACT
(2) METASTAR INC 2909 LANDMARK PLACE MADISON,WI53713	39-1332612	501(C)(3)	3,031,798	N/A	N/A	SUBRECIPIENT ON CMS CONTRACT
(3) QUALITY HEALTH ASSOCIATES OF NORTH DAKOTA 3520 NORTH BROADWAY MINOT,ND58703	45-0321923	501(C)(3)	114,019	N/A	N/A	SUBRECIPIENT ON REACH CONTRACT #90RC0021/01
(4) NATIONAL RURAL HEALTH RESOURCE CENTER 525 SOUTH LAKE AVENUE SUITE 320 DULUTH,MN55802	41-1953141	501(C)(3)	104,565	N/A	N/A	SUBRECIPIENT ON REACH CONTRACT #90RC0021/01
(5) CARING BRIDGE 1715 YANKEE DOODLE ROAD SUITE 301 EAGAN,MN55121	42-1529394	501(C)(3)	10,000	N/A	N/A	GRANT FOR BUILDING HEALTHIER COMMUNITIES IN MINNESOTA
(6) NATIONAL ALLIANCE ON MENTAL ILLNESS MN 800 TRANSFER ROAD SUITE 31 SAINT CLOUD,MN56302	27-2454241	501(C)(3)	10,000	N/A	N/A	GRANT FOR BUILDING HEALTHIER COMMUNITIES IN MINNESOTA
(7) NATIVE AMERICAN COMMUNITY 875 SUMMIT AVENUE SAINT PAUL,MN55114	41-1317030	501(C)(3)	15,000	N/A	N/A	GRANT FOR BUILDING HEALTHIER COMMUNITIES IN MINNESOTA
(8) YMCA OF THE GREATER TWIN CITIES 2125 EAST HENNEPIN AVENUE MINNEAPOLIS,MN55413	45-2563299	501(C)(3)	10,000	N/A	N/A	GRANT FOR BUILDING HEALTHIER COMMUNITIES IN MINNESOTA

Enter total number of section 501(c)(3) and government organizations listed in the line 1 table ................ Bullet Image

Enter total number of other organizations listed in the line 1 table ........................ . Bullet Image

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50055P

Schedule I (Form 990) 2014

Page 2

Part III

Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Part III can be duplicated if additional space is needed.

(a)Type of grant or assistance	(b)Number of recipients	(c)Amount of cash grant	(d)Amount of non-cash assistance	(e)Method of valuation (book, FMV, appraisal, other)	(f)Description of non-cash assistance

Part IV

Supplemental Information. Provide the information required in Part I, line 2, Part III, column (b), and any other additional information.

Return Reference	Explanation
PART I, LINE 2:	BUILDING HEALTHIER COMMUNITIES IN MINNESOTA GRANTS: STRATIS HEALTH PROVIDES FINANCIAL GRANTS TO ORGANIZATIONS THAT FOSTER EXCELLENCE IN HEALTHCARE OR PROVIDE EDUCATIONAL MESSAGES AND RESOURCES WITH THE GOAL OF IMPROVING THE HEALTH OF MINNESOTANS. AS A NON-PROFIT GUIDED BY AN INDEPENDENT COMMUNITY-BASED BOARD OF DIRECTORS, STRATIS HEALTH IS COMMITTED TO BEING A RESPONSIBLE AND ENGAGED COMMUNITY MEMBER. THE BUILDING HEALTHIER COMMUNITIES GRANTS, FOR INSTANCE, SUPPORT INITIATIVES THAT CAN HELP GROW AN APPRECIATION FOR THE CULTURE OF HEALTH CARE QUALITY IN MINNESOTA. STRATIS HEALTH MONITORS THE USE OF THEIR GRANT FUNDS BY REQUIRING THE GRANTEE TO SUBMIT A FINAL PROGRAM SUMMARY REPORT WHICH INCLUDES THE PROGRAM DESCRIPTION, A DETAILED NARRATIVE DESCRIBING HOW THE FUNDS WERE USED AND HOW THE GRANTEE HAS ACHIEVED THE GOALS SET FORTH IN THEIR GRANT AGREEMENT AND THEIR PLANS FOR LONG TERM PROGRAM SUSTAINABILITY. CMS AND REACH CONTRACT SUBRECIPIENTS: CMS CONTRACT FUNDING CHANGED FOR THE 2014 REPORTING YEAR STRATIS RECEIVES FUNDING FOR THE QIO GROUP WHICH INCLUDES MICHIGAN, MINNESOTA AND WISCONSIN. IN PRIOR REPORTING YEARS, MICHIGAN AND WISCONSIN QIOS USED TO RECEIVE FUNDING DIRECTLY. AS PART OF THE CHANGE IN FUNDING, STRATIS HEALTH IS RESPONSIBLE FOR OVERSIGHT AND EXPENDITURE RESPONSIBILITY FOR ITS OWN CONTRACT FULFILLMENT, AS WELL AS MICHIGAN AND WISCONSIN. STRATIS HEALTH HAS INVESTED THE APPROPRIATE RESOURCES TO ENSURE THAT COMPREHENSIVE AND PRUDENT OVERSIGHT OF ALL CMS CONTRACT FUNDS CONSISTENT WITH THE REQUIREMENTS SET FORTH BY THE OFFICE OF MANAGEMENT AND BUGDET (OMB) FOR SINGLE AUDIT MONITORING.

Return Reference

Explanation

PART I, LINE 2:

BUILDING HEALTHIER COMMUNITIES IN MINNESOTA GRANTS: STRATIS HEALTH PROVIDES FINANCIAL GRANTS TO ORGANIZATIONS THAT FOSTER EXCELLENCE IN HEALTHCARE OR PROVIDE EDUCATIONAL MESSAGES AND RESOURCES WITH THE GOAL OF IMPROVING THE HEALTH OF MINNESOTANS. AS A NON-PROFIT GUIDED BY AN INDEPENDENT COMMUNITY-BASED BOARD OF DIRECTORS, STRATIS HEALTH IS COMMITTED TO BEING A RESPONSIBLE AND ENGAGED COMMUNITY MEMBER. THE BUILDING HEALTHIER COMMUNITIES GRANTS, FOR INSTANCE, SUPPORT INITIATIVES THAT CAN HELP GROW AN APPRECIATION FOR THE CULTURE OF HEALTH CARE QUALITY IN MINNESOTA. STRATIS HEALTH MONITORS THE USE OF THEIR GRANT FUNDS BY REQUIRING THE GRANTEE TO SUBMIT A FINAL PROGRAM SUMMARY REPORT WHICH INCLUDES THE PROGRAM DESCRIPTION, A DETAILED NARRATIVE DESCRIBING HOW THE FUNDS WERE USED AND HOW THE GRANTEE HAS ACHIEVED THE GOALS SET FORTH IN THEIR GRANT AGREEMENT AND THEIR PLANS FOR LONG TERM PROGRAM SUSTAINABILITY. CMS AND REACH CONTRACT SUBRECIPIENTS: CMS CONTRACT FUNDING CHANGED FOR THE 2014 REPORTING YEAR STRATIS RECEIVES FUNDING FOR THE QIO GROUP WHICH INCLUDES MICHIGAN, MINNESOTA AND WISCONSIN. IN PRIOR REPORTING YEARS, MICHIGAN AND WISCONSIN QIOS USED TO RECEIVE FUNDING DIRECTLY. AS PART OF THE CHANGE IN FUNDING, STRATIS HEALTH IS RESPONSIBLE FOR OVERSIGHT AND EXPENDITURE RESPONSIBILITY FOR ITS OWN CONTRACT FULFILLMENT, AS WELL AS MICHIGAN AND WISCONSIN. STRATIS HEALTH HAS INVESTED THE APPROPRIATE RESOURCES TO ENSURE THAT COMPREHENSIVE AND PRUDENT OVERSIGHT OF ALL CMS CONTRACT FUNDS CONSISTENT WITH THE REQUIREMENTS SET FORTH BY THE OFFICE OF MANAGEMENT AND BUGDET (OMB) FOR SINGLE AUDIT MONITORING.

Schedule I (Form 990) 2014

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet

Complete if the organization answered "Yes" to Form 990, Part IV, line 23.
SchJMediumBullet

Attach to Form 990.
SchJMediumBullet

Information about Schedule J (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

STRATIS HEALTH

Employer identification number

41-0971557

Part I

Questions Regarding Compensation

Yes

Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.

First-class or charter travel Housing allowance or residence for personal use

Travel for companions Payments for business use of personal residence

Tax idemnification and gross-up payments Health or social club dues or initiation fees

Discretionary spending account Personal services (e.g., maid, chauffeur, chef)

If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If "No," complete Part III to explain....

Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
directors, trustees, officers, including the CEO/Executive Director, regarding the items checked in line 1a? ..

Indicate which, if any, of the following the filing organization used to establish the compensation of the
organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

Form 990 of other organizations Approval by the board or compensation committee

During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:

Receive a severance payment or change-of-control payment? ................

Participate in, or receive payment from, a supplemental nonqualified retirement plan? .........

Participate in, or receive payment from, an equity-based compensation arrangement? .........

If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.

Only 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9.

For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 5a or 5b, describe in Part III.

For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 6a or 6b, describe in Part III.

For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............

Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................

If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50053T

Schedule J (Form 990) 2014

Page 2

Part II

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed.

For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions, on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.
Note. The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual.

(A) Name and Title		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation in column(B) reported as deferred in prior Form 990
(A) Name and Title		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)
1JENNIFER P LUNDBLAD PHD MBAPRESIDENT/CEO	(i) (ii)	264,020 ............................... 0	0 ............................... 0	350 ............................... 0	7,477 ............................... 0	9,642 ............................... 0	281,489 ............................... 0	0 ............................... 0
2MICHAEL J NOVAKVP FINANCE/CFO	(i) (ii)	147,436 ............................... 0	0 ............................... 0	350 ............................... 0	4,764 ............................... 0	5,442 ............................... 0	157,992 ............................... 0	0 ............................... 0
3PAUL KLEEBERG MDCHIEF MED INFORMATICS OFFICER	(i) (ii)	299,756 ............................... 0	0 ............................... 0	1,477 ............................... 0	8,750 ............................... 0	15,042 ............................... 0	325,025 ............................... 0	0 ............................... 0
4JANE PEDERSON MDCHIEF MEDICAL QUALITY OFFICER	(i) (ii)	205,764 ............................... 0	0 ............................... 0	536 ............................... 0	6,117 ............................... 0	14,442 ............................... 0	226,859 ............................... 0	0 ............................... 0
5GREG LINDEN MBA CPHIT CPEHRVP INFORMATION SYSTEMS	(i) (ii)	156,348 ............................... 0	0 ............................... 0	536 ............................... 0	5,262 ............................... 0	15,042 ............................... 0	177,188 ............................... 0	0 ............................... 0
6CATHERINE WEIK MAL SPHRSENIOR VP ADMINISTRATION	(i) (ii)	161,475 ............................... 0	0 ............................... 0	1,002 ............................... 0	5,600 ............................... 0	9,642 ............................... 0	177,719 ............................... 0	0 ............................... 0
7ELIZABETH JEPPESEN RN BSN CPHQSENIOR VP PROGRAM OPERATIONS	(i) (ii)	155,210 ............................... 0	0 ............................... 0	536 ............................... 0	4,726 ............................... 0	15,042 ............................... 0	175,514 ............................... 0	0 ............................... 0

Schedule J (Form 990) 2014

Page 3

Part III

Supplemental Information

Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II.
Also complete this part for any additional information.

Return Reference	Explanation

Schedule J (Form 990) 2014

Additional Data

Software ID:
Software Version:

- TIN:

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 990-EZ or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.
MediumBullet

Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization

STRATIS HEALTH

Employer identification number

41-0971557

Return Reference	Explanation
FORM 990, PART III, LINE 4A PROGRAM NARRATIVE CONTINUATION	STRATIS HEALTH'S LARGEST BODIES OF WORK INCLUDED: -LEADING THE MEDICARE QUALITY INNOVATION NETWORK-QUALITY IMPROVEMENT ORGANIZATION (QIN-QIO) FOR MICHIGAN, MINNESOTA AND WISCONSIN ON BEHALF OF THE CENTERS FOR MEDICARE & MEDICAID SERVICES (CMS). -LEADING THE FEDERAL REGIONAL EXTENSION CENTER FOR HEALTH INFORMATION TECHNOLOGY (HIT) FOR MINNESOTA AND NORTH DAKOTA ON BEHALF OF THE OFFICE OF THE NATIONAL COORDINATOR FOR HIT OTHER STRATIS HEALTH WORK FACILITATED HEALTH CARE QUALITY IMPROVEMENT AND SAFETY FOR PEOPLE AND COMMUNITIES IN MINNESOTA AND ACROSS THE NATION. THIS WORK WAS PRIMARILY IN HEALTH INFORMATION TECHNOLOGY TO ADVANCE E-HEALTH, RURAL HEALTH QUALITY IMPROVEMENT TO BUILD AND STRENGTHEN INFRASTRUCTURE, LONG-TERM CARE PROMOTING QUALITY ASSURANCE PERFORMANCE IMPROVEMENT (QAPI), CULTURAL COMPETENCE, AND PATIENT SAFETY. MEDICARE QIN-QIO - LAKE SUPERIOR QUALITY INNOVATION NETWORK STRATIS HEALTH LEADS LAKE SUPERIOR QUALITY INNOVATION NETWORK, WHICH SERVES CMS IN MICHIGAN, MINNESOTA AND WISCONSIN AS ONE OF 14 QIN-QIOS ACROSS THE COUNTRY WORKING TO IMPLEMENT NATIONAL HEALTH CARE QUALITY PRIORITIES ON THE LOCAL LEVEL. STRATIS HEALTH WORKED LOCALLY IN MINNESOTA TO CONVENE PROVIDERS, PRACTITIONERS AND PATIENTS TO BUILD AND SHARE KNOWLEDGE, SPREAD BEST PRACTICES, AND ACHIEVE RAPID, WIDE-SCALE IMPROVEMENTS IN PATIENT CARE, IMPROVE POPULATION HEALTH, AND DECREASE HEALTH CARE COST. STRATIS HEALTH BROUGHT TOGETHER COMMUNITIES IN STATEWIDE LEARNING AND ACTION NETWORKS TO ACHIEVE NATIONAL QUALITY GOALS. WE SUPPORTED PROVIDERS AND PRACTITIONERS WITH EVIDENCE-BASED CLINICAL INTERVENTIONS AND OBJECTIVE EXPERTISE, AND PROVIDED QUALITY IMPROVEMENT TECHNICAL ASSISTANCE TO 244 NURSING HOMES, 60 CLINICS, 62 HOSPITALS, 39 HOME HEALTH AGENCIES, NINE HOSPICE/PALLIATIVE CARE PROGRAMS, AS WELL AS WITH OTHER CARE DELIVERY ORGANIZATIONS. ACROSS THE CARE CONTINUUM STRATIS HEALTH USED A COMMUNITY-BASED APPROACH TO SUPPORT SEVEN MINNESOTA COMMUNITIES (CUYUNA/RIVERWOORD AREA, MORA AREA, NORTH CENTRAL MN, NORTH EAST MN, NORTH WEST MN, RIDGEVIEW AREA AND THE WEST METRO) TO IMPROVE PATIENT TRANSITIONS BETWEEN CARE FACILITIES AND REDUCE HOSPITAL READMISSIONS. COLLECTIVELY MORE THAN 14 HOSPITALS, SEVEN CLINICS, 28 NURSING HOMES, 19 HOME HEALTH AGENCIES, NINE HOSPICE/PALLIATIVE CARE PROGRAMS, PLUS ADDITIONAL STAKEHOLDERS CAME TOGETHER TO DEVELOP SOLUTIONS THAT WORK LOCALLY. ADULT PRIMARY CARE CLINICS STRATIS HEALTH WORKED WITH 29 MEDICAL CLINICS TO TRACK QUALITY IMPROVEMENTS IN CARDIAC CARE AND MEET CLINICAL CARE GOALS FOR THE USE OF ASPIRIN, BLOOD PRESSURE CONTROL, CHOLESTEROL MANAGEMENT, AND SMOKING SCREENING AND CESSATION. WE WORKED WITH NINE CLINICS, PRIMARILY IN RURAL, UNDERSERVED AREAS TO IMPROVE CLINICAL OUTCOMES RELATED TO KEY DIABETES MEASURES. THIS INITIATIVE AIMS TO INCREASE THE NUMBER OF DIABETES TRAINERS AND PEER EDUCATORS IN THE COMMUNITY AND INCREASE THE NUMBER OF DIABETES SELF-MANAGEMENT EDUCATION (DSME) CLASSES. FIFTEEN CLINICS BEGAN WORK WITH STRATIS HEALTH TO ENHANCE THEIR ABILITY TO USE TECHNOLOGY TO EITHER IMPROVE PREVENTION COORDINATION OR FACILITATE QUALITY REPORTING, WHICH WILL PREPARE THEM TO BETTER PARTICIPATE IN VALUE-BASED PURCHASING PROGRAMS AND IMPROVE HEALTH FOR POPULATIONS THROUGH QUALITY IMPROVEMENT EFFORTS. HOSPITALS TO ENHANCE PATIENT SAFETY, STRATIS HEALTH RECRUITED 19 HOSPITALS TO PREVENT AND REDUCE THE HOSPITAL-ACQUIRED INFECTIONS OF CAUTI, CDI, AND CLABSI, AS WELL AS VENTILATOR-ASSOCIATED EVENTS. STATEWIDE, STRATIS HEALTH CO-LEADS INFECTION REDUCTION EFFORTS AS PART OF THE COLLABORATIVE HEALTHCARE ASSOCIATED INFECTION NETWORK (CHAIN) WITH THE ASSOCIATION FOR PROFESSIONALS IN INFECTION CONTROL AND EPIDEMIOLOGY (MINNESOTA CHAPTER), THE MINNESOTA DEPARTMENT OF HEALTH, AND THE MINNESOTA HOSPITAL ASSOCIATION. WE ASSISTED HOSPITALS WITH QUALITY REPORTING AND IMPROVEMENT INITIATIVES BY CREATING A BRIDGE BETWEEN STATE AND NATIONAL EFFORTS, INCLUDING UNDERSTANDING VALUE-BASED PURCHASING-A REWARDS SYSTEM WITH INCENTIVE PAYMENTS FOR QUALITY OF CARE. NURSING HOMES STRATIS HEALTH'S STATEWIDE WORK WITH 244 NURSING HOMES INCLUDED ENHANCING SYSTEMS OF CARE THAT LEAD TO BETTER OUTCOMES, ADDRESSING SYSTEMIC ISSUES, AND IMPROVING OVERALL CARE. ANTICIPATED IMPACT FROM THIS WORK INCLUDES: INCREASED MOBILITY OF LONG-STAY RESIDENTS, DECREASED USE OF ANTIPSYCHOTIC MEDICATION, DECREASED HEALTHCARE-ACQUIRED CONDITIONS (HACS), AND DECREASED AVOIDABLE HOSPITALIZATIONS. THE WORK HAS CONTINUED IMPROVEMENT IN RESIDENT CARE, AS ANTIPSYCHOTIC MEDICATION USE HAS DECLINED BY 28.9% IN MINNESOTA NURSING HOMES SINCE 2011. TO SUPPORT ITS QIO PROGRAM EFFORT, STRATIS HEALTH'S WORK INCLUDED: -IN MINNESOTA, BROADLY REACHING ALL 146 HOSPITALS, NEARLY 800 PRIMARY CARE CLINICS, 368 NURSING HOMES, AND 211 HOME HEALTH AGENCIES WITH QUALITY IMPROVEMENT RESOURCES, TOOLS, AND INFORMATION. -ACTIVELY SUPPORTING THE DISSEMINATION OF QUALITY IMPROVEMENT TOOLS AND RESOURCES ON OUR WEB SITE (WWW.STRATISHEALTH.ORG), WHERE AN EXTENSIVE CATALOG OF MORE THAN 3,549 ITEMS IS CONTINUALLY UPDATED AND ADDED TO. -DEVELOPING AND IMPLEMENTING EDUCATIONAL PROGRAMS FOR HEALTH CARE PROVIDERS, THROUGH IN-PERSON WORKSHOPS AND TRAINING SESSIONS, AS WELL AS CONFERENCE CALLS AND WEBINARS. FROM AUGUST 1, 2014, THROUGH JULY 31, 2015, STRATIS HEALTH OFFERED OVER 55 EDUCATIONAL EVENTS FOR PHYSICIANS AND ALLIED HEALTH CARE PROFESSIONALS IN RURAL AND URBAN AREAS OF MINNESOTA, WITH A TOTAL OF MORE THAN 2,100 PARTICIPANTS. HIT REC FOR MINNESOTA AND NORTH AS A PARTNER IN KEY HEALTH ALLIANCE, STRATIS HEALTH CO-LEADS THE REGIONAL EXTENSION ASSISTANCE CENTER FOR HIT (REACH)-ONE OF 62 NONPROFIT FEDERALLY DESIGNATED HIT REGIONAL EXTENSION CENTERS DEDICATED TO HELPING PROVIDERS IN MINNESOTA AND NORTH DAKOTA IMPROVE CARE BY IMPLEMENTING AND USING EHR SYSTEMS. REACH SERVED NEARLY 5,000 INDIVIDUAL PRIMARY CARE PROVIDERS AT APPROXIMATELY 630 CLINICS AND 125 CRITICAL ACCESS AND RURAL HOSPITALS TO ADOPT AND OPTIMIZE USE OF ELECTRONIC HEALTH RECORDS (EHRS). PROVIDERS AND HOSPITALS HAVE SUCCESSFULLY ATTESTED TO FEDERAL MEANINGFUL USE REQUIREMENTS, AND RECEIVED ACCESS TO INCENTIVE DOLLARS OR AVOIDED PENALTIES. FOR CLINICIANS, 4,950 ARE USING CERTIFIED EHRS FOR E-PRESCRIBING, COMPUTERIZED PHYSICIAN ORDER ENTRY (CPOE), AND QUALITY REPORTING; AND 3,562 ACHIEVED STAGE 1 MEANINGFUL USE. FOR CRITICAL ACCESS HOSPITALS/RURAL HOSPITALS, 119 ARE USING CERTIFIED EHRS FOR E-PRESCRIBING, CPOE, AND QUALITY REPORTING; AND 113 ACHIEVED STAGE 1 MEANINGFUL USE. GRANTS TO OTHER ORGANIZATIONS DURING THE FISCAL YEAR AUGUST 1, 2014, THROUGH JULY 31, 2015, STRATIS HEALTH PROVIDED FINANCIAL GRANTS TOTALING $66,000 TO ORGANIZATIONS THAT FOSTER EXCELLENCE IN HEALTH CARE OR PROVIDING EDUCATIONAL MESSAGES AND RESOURCES WITH THE GOAL OF IMPROVING THE HEALTH OF MINNESOTANS. AS A NONPROFIT ORGANIZATION GUIDED BY AN INDEPENDENT COMMUNITY-BASED BOARD OF DIRECTORS, STRATIS HEALTH IS COMMITTED TO BEING A RESPONSIBLE AND ENGAGED COMMUNITY MEMBER. THE BUILDING HEALTHIER COMMUNITIES GRANTS SUPPORT INITIATIVES THAT CAN HELP GROW AN APPRECIATION FOR THE CULTURE OF HEALTH CARE QUALITY IN MINNESOTA.
FORM 990, PART VI, SECTION A, LINE 1	THE EXECUTIVE COMMITTEE SHALL CONSIST OF THE CHAIR, THE VICE CHAIR, THE IMMEDIATE PAST CHAIR, THE SECRETARY AND AT LEAST ONE OTHER DIRECTOR DESIGNATED BY THE BOARD. THE CHAIR OF THE BOARD SHALL BE CHAIR OF THE EXECUTIVE COMMITTEE. THE EXECUTIVE COMMITTEE SHALL AT ALL TIMES BE SUBJECT TO THE CONTROL AND DIRECTION OF THE BOARD OF DIRECTORS. DURING SUCH INTERVALS AND SUBJECT TO SUCH CONTROL AND DIRECTION, THE EXECUTIVE COMMITTEE SHALL HAVE AND MAY EXERCISE ALL OF THE AUTHORITY AND POWERS OF THE BOARD OF DIRECTORS IN THE MANAGEMENT OF THE BUSINESS OF THE CORPORATION, SUBJECT TO SUCH LIMITATIONS AS THE BOARD OF DIRECTORS MAY IMPOSE FROM TIME TO TIME.
FORM 990, PART VI, SECTION B, LINE 11	THE FORM 990 IS REVIEWED BY THE CFO AND CONTROLLER, AND COPIES OF THE RETURN ARE PROVIDED ELECTRONICALLY TO ALL BOARD MEMBERS PRIOR TO FILING WITH THE IRS.
FORM 990, PART VI, SECTION B, LINE 12C	STRATIS HEALTH HAS AN ORGANIZATIONAL CONFLICT OF INTEREST POLICY WHICH IS INCORPORATED INTO ITS COMPLIANCE PLAN INITIALLY UPON ELECTION TO THE STRATIS HEALTH BOARD OF DIRECTORS AND HIRE TO THE ORGANIZATION AND ON AN ANNUAL BASIS, ALL STRATIS HEALTH BOARD MEMBERS, SENIOR MANAGEMENT AND OTHER KEY STRATIS HEALTH PERSONNEL ARE REQUIRED TO REVIEW THE POLICY AND COMPLETE THE CONFLICT OF INTEREST QUESTIONNAIRE SO THAT STRATIS HEALTH IS AWARE AND ABLE TO DEVELOP MITIGATION PLANS TO MANAGE ANY POTENTIAL, PERCEIVED OR REAL CONFLICTS. THE PROCESS IS MANAGED BY STRATIS HEALTH'S SENIOR VICE PRESIDENT ADMINISTRATION/COMPLIANCE OFFICER. EACH RESPONSIBLE PERSON SHALL BE REQUIRED TO REVIEW A COPY OF THE CONFLICT OF INTEREST POLICY AND TO ACKNOWLEDGE IN WRITING THAT HE OR SHE HAS DONE SO. THIS SHALL BE DONE ANNUALLY BY EACH RESPONSIBLE PERSON. A DIRECTOR, OFFICER OR KEY PERSONNEL WHO HAS A CONFLICT OF INTEREST SHALL REPORT ALL FACTS MATERIAL TO THE CONFLICT TO THE CHAIR OF THE BOARD. THE CHAIR SHALL REPORT THE DISCLOSURE TO STRATIS HEALTH'S COMPLIANCE OFFICER AND AT THE MEETING, THE DISCLOSURE SHALL BE REFLECTED IN THE MEETING MINUTES. A PERSON WHO HAS A CONFLICT OF INTEREST SHALL NOT PARTICIPATE IN OR BE PERMITTED TO HEAR THE BOARD OR COMMITTEE DISCUSSION OF THE MATTER EXCEPT TO DISCLOSE MATERIAL FACTS AND TO RESPOND TO QUESTIONS. THE PERSON HAVING THE CONFLICT OF INTEREST MAY NOT VOTE ON THE CONTRACT OR TRANSACTION AND SHALL NOT BE PRESENT IN THE MEETING ROOM WHEN THE VOTE IS TAKEN, UNLESS THE VOTE IS DONE BY SECRET BALLOT.
FORM 990, PART VI, SECTION B, LINE 15	IN ACCORDANCE WITH INTERNAL REVENUE CODE (IRC SECTION 4958) STRATIS HEALTH IMPLEMENTED AN EXECUTIVE COMPENSATION INTERMEDIATE SANCTIONS COMPLIANCE PLAN (ISCP) IN 2005. THE COMPENSATION SETTING COMMITTEE IS COMPRISED OF MEMBERS OF STRATIS HEALTH'S EXECUTIVE/FINANCE BOARD COMMITTEE. THE COMMITTEE SERVES AS THE DECISION-MAKING BODY IN DETERMINING REASONABLE LEVELS OF COMPENSATION AND BENEFITS FOR THE CHIEF EXECUTIVE OFFICER, SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER POSITIONS. THE COMMITTEE IS RESPONSIBLE FOR GATHERING SALARY AND BENEFIT COMPARABILITY DATA, WHICH IS DONE ON A BI-ANNUAL BASIS BASED ON REVIEW AND APPROVAL OF THE DATA. THE COMMITTEE IS RESPONSIBLE FOR APPROVING AND FINALIZING THE SALARY RANGE FOR EACH OF THE REVIEWED POSITIONS. THE COMMITTEE ALSO HAS THE RESPONSIBILITY TO APPROVE THE CHIEF EXECUTIVE OFFICER'S SALARY INCREASE ON AN ANNUAL BASIS. THE COMMITTEE ENGAGES A CONSULTANT TO CONDUCT AN INDEPENDENT SURVEY AND REVIEW OF THE SALARY DATA COLLECTED. THIS PROCESS WAS LAST CONDUCTED IN OCTOBER 2014 FOR OFFICERS OF STRATIS HEALTH.
FORM 990, PART VI, SECTION C, LINE 19	THE ORGANIZATION PROVIDES THE FOLLOWING UPON REQUEST: AN ANNUAL REPORT THAT INCLUDES A DESCRIPTION OF THE ORGANIZATION'S PURPOSE, A DESCRIPTION OF ITS PROGRAM ACTIVITIES AND ACCOMPLISHMENTS AND GEOGRAPHIC AREA SERVED, A SUMMARY OF THE TOTAL COST OF EACH MAJOR PROGRAM (TO THE EXTENT REQUIRED IN THE IRS FORM 990) AND A LIST OF THE ORGANIZATION'S BOARD OF DIRECTORS. THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY OR FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC.

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2014

Additional Data

Software ID:
Software Version:

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 13,238,037 including grants of $ 7,986,952 ) (Revenue $ 16,248,307 )
	TO MEET OUR MISSION, STRATIS HEALTH FOCUSES ON CLINICAL QUALITY IMPROVEMENT, ORGANIZATIONAL AND COMMUNITY CHANGE MANAGEMENT, AND CONSUMER EDUCATION. WE BRING TOGETHER COMMUNITIES AND NETWORKS TO PLAN STRATEGIES FOR IMPROVING HEALTH AND CARE DELIVERY. WE PROVIDE TECHNICAL ASSISTANCE AND SUPPORT ACROSS THE HEALTH CARE PROVIDER COMMUNITY--HOSPITALS, CLINICS, NURSING HOMES, HOME HEALTH AGENCIES AND OTHERS--TO SUPPORT CARE DELIVERY THAT IS SAFE, HIGH QUALITY, COORDINATED, AND EVIDENCE-BASED. SEE SCHEDULE O FOR CONTINUATION OF WORK DURING THE FISCAL YEAR AUGUST 1, 2014, THROUGH JULY 31, 2015.

4b	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )












4c	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )












4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses13,238,037

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)			(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(18) MIKE WILCOX MD........................................................................ DIRECTOR - AS OF JAN 2015	1.00 .......................	X			0	0	0
(19) JENNIFER P LUNDBLAD PHD MBA........................................................................ PRESIDENT/CEO	40.00 .......................		X		264,370	0	17,119
(20) MICHAEL J NOVAK........................................................................ VP FINANCE/CFO	40.00 .......................		X		147,786	0	10,206
(21) PAUL KLEEBERG MD........................................................................ CHIEF MED INFORMATICS OFFICER	40.00 .......................			X	301,233	0	23,792
(22) JANE PEDERSON MD........................................................................ CHIEF MEDICAL QUALITY OFFICER	32.00 .......................			X	206,300	0	20,559
(23) GREG LINDEN MBA CPHIT CPEHR........................................................................ VP INFORMATION SYSTEMS	40.00 .......................			X	156,884	0	20,304
(24) CATHERINE WEIK MAL SPHR........................................................................ SENIOR VP ADMINISTRATION	40.00 .......................			X	162,477	0	15,242
(25) ELIZABETH JEPPESEN RN BSN CPHQ........................................................................ SENIOR VP PROGRAM OPERATIONS	40.00 .......................			X	155,746	0	19,768

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	1,394,796	0	126,990

(A) Name and business address	(B) Description of services	(C) Compensation
LISA GALL 35294 LOGAN LANE HILLMAN,MN56338	CONSULTING SERVICES	100,831




2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization 1

1	Briefly describe the organization’s mission or most significant activities: LEADING COLLABORATION AND INNOVATION IN HEALTH CARE QUALITY AND SAFETY
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	15
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	15
5	Total number of individuals employed in calendar year 2014 (Part V, line 2a) ......	5	68
6	Total number of volunteers (estimate if necessary) .............	6	15
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	0
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	0

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	0	0
9	Program service revenue (Part VIII, line 2g) .........	12,092,493	16,248,307
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	176,565	248,488
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	0	0
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	12,269,058	16,496,795
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	90,150	7,986,952
14	Benefits paid to or for members (Part IX, column (A), line 4).....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	7,972,179	6,467,499
16a	Professional fundraising fees (Part IX, column (A), line 11e).....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	4,405,052	2,725,232
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	12,467,381	17,179,683
19	Revenue less expenses. Subtract line 18 from line 12.......	-198,323	-682,888
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	8,690,520	7,841,571
21	Total liabilities (Part X, line 26).............	2,410,199	2,275,865
22	Net assets or fund balances. Subtract line 21 from line 20.....	6,280,321	5,565,706

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512-514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d
e	Government grants (contributions)1e

f	All other contributions, gifts, grants, and similar amounts not included above1f

g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......
			Business Code
2a	HEALTH CARE PROGRAM		900099	11,499,471	11,499,471
b	FEES AND CONTRACTS		900099	4,748,836	4,748,836
c
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			16,248,307
3	Investment income (including dividends, interest, and other similar amounts).......			248,488			248,488
4	Income from investment of tax-exempt bond proceeds..
5	Royalties...........
		(i) Real	(ii) Personal
6a	Gross rents
b	Less: rental expenses
c	Rental income or (loss)
d	Net rental income or (loss).......
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory
b	Less: cost or other basis and sales expenses
c	Gain or (loss)
d	Net gain or (loss)..........
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ..
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..
Miscellaneous Revenue			Business Code
11a
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......
12	Total revenue. See Instructions......			16,496,795	16,248,307	0	248,488


				(A) Beginning of year		(B) End of year
1	Cash–non-interest-bearing .............			1,714,405	1	1,033,132
2	Savings and temporary cash investments .........				2
3	Pledges and grants receivable, net ...........			947,997	3	1,611,721
4	Accounts receivable, net .............			147,726	4	389,287
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
					5
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
					6
7	Notes and loans receivable, net .............				7
8	Inventories for sale or use ..............				8
9	Prepaid expenses and deferred charges ..........			67,469	9	85,020
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	2,463,592
b	Less: accumulated depreciation .....	10b	2,072,874	547,243	10c	390,718
11	Investments—publicly traded securities ..........			5,265,680	11	4,331,693
12	Investments—other securities. See Part IV, line 11 .....				12
13	Investments—program-related. See Part IV, line 11 .....				13
14	Intangible assets ...............				14
15	Other assets. See Part IV, line 11 ...........				15
16	Total assets. Add lines 1 through 15 (must equal line 34)......			8,690,520	16	7,841,571
17	Accounts payable and accrued expenses .........			1,331,530	17	1,653,164
18	Grants payable .................				18
19	Deferred revenue ................			800,219	19	424,244
20	Tax-exempt bond liabilities .............				20
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			254,478	23	182,638
24	Unsecured notes and loans payable to unrelated third parties ....				24
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................			23,972	25	15,819
26	Total liabilities. Add lines 17 through 25.........			2,410,199	26	2,275,865
	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............			6,280,321	27	5,565,706
28	Temporarily restricted net assets ...........				28
29	Permanently restricted net assets ...........				29
	Organizations that do not follow SFAS 117 (ASC 958), check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds ........				30
31	Paid-in or capital surplus, or land, building or equipment fund .....				31
32	Retained earnings, endowment, accumulated income, or other funds				32
33	Total net assets or fund balances ...........			6,280,321	33	5,565,706
34	Total liabilities and net assets/fund balances ........			8,690,520	34	7,841,571