TY 2015 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) ROBERT ZENTZ...................................................................... CHAIRMAN	1.00 .................	X	X		0	0	0
(2) DOUGLAS SHOENBERGER MD...................................................................... FIRST VICE CHAIRMAN	1.00 .................	X	X		0	0	0
(3) JAMES FRONHEISER...................................................................... SECOND VICE CHAIRMAN	1.00 .................	X	X		0	0	0
(4) JOHN L NESPOLI...................................................................... PRESIDENT/CEO	50.00 ................. 5.00	X	X		0	492,480	25,548
(5) ANTHONY AUTERI MD...................................................................... DIRECTOR	1.00 .................	X			0	0	0
(6) TRICIA BERNECKER PHD...................................................................... DIRECTOR	1.00 .................	X			0	0	0
(7) REV JOHN GIBBONS...................................................................... DIRECTOR	1.00 .................	X			0	0	0
(8) WILLIAM J SCHARLE...................................................................... DIRECTOR	1.00 .................	X			0	0	0
(9) DR PETER ISAAC...................................................................... MEDICAL STAFF PRESIDENT	10.00 .................	X			14,588	0	0
(10) DANIEL C CONFALONE...................................................................... CFO	50.00 ................. 5.00		X		0	322,166	26,384
(11) STEPHEN A LANSHE ESQ...................................................................... VP & GENERAL COUNSEL	50.00 ................. 5.00		X		0	345,275	30,464
(12) ANDREW UNGER...................................................................... PHYSICIAN	55.00 .................			X	219,559	0	28,512
(13) DANIEL COLLER...................................................................... PHYSICIAN	55.00 .................			X	205,153	0	24,152
(14) RICHARD MARTIN...................................................................... PHYSICIAN	55.00 .................			X	203,946	0	16,266
(15) ATIRA RAHMAN...................................................................... PHYSICIAN	55.00 .................			X	172,228	0	26,820
(16) NANDHINI VEEREAEAGHAVEN...................................................................... PHYSICIAN	55.00 .................			X	169,828	0	3,954

(A) Name and business address	(B) Description of services	(C) Compensation
GRANT FACILITIES MANAGEMENT INC 188 FRIES MILL RD TURNERSVILLE,NJ08012	FACILITIES MANAGEMENT	1,997,870
MORRISON MANAGEMENT SPEC INC PO BOX 102289 ATLANTA,GA30368	FOOD SERVICES	1,865,686
PRECYSE SOLUTIONS LLC PO BOX 11407 BIRMINGHAM,AL35246	MEDICAL RECORD CODING	1,668,807
BOYLE CONSTRUCTION INC 1209 HAUSMAN RD ALLENTOWN,PA18104	CONTRACTOR SERVICES	1,151,160
CERNER HEALTH SERVICES INC PO BOX 959167 CHICAGO,IL63195	IT SERVICES	797,553
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 30

- 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.
right arrow

Attach to Form 990 or Form 990-EZ.
right arrow

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

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization

SACRED HEART HOSPITAL

Employer identification number

23-1352208

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 (Form 990 or 990-EZ))

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 990-EZ.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2015

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) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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 2015 (line 6, column (f) divided by line 11, column (f)) .........

Public support percentage for 2014 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2015. 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—2014. 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—2015. 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—2014. 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) 2015

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) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(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......
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.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
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.
c	Add lines 7a and 7b..
8	Public support. (Subtract line 7c from line 6.)

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(f) Total
9	Amounts from line 6...
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.
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.)..

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 2015 (line 8, column (f) divided by line 13, column (f)) .........

Public support percentage from 2014 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2015 (line 10c, column (f) divided by line 13, column (f)) ......

Investment income percentage from 2014 Schedule A, Part III, line 17 .............

19a

331/3% support tests—2015. 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—2014. 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) 2015

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 (i) its supported organizations, (ii) individuals that are part of the charitable class benefited by one or more of its supported organizations, or (iii) 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 section 4958(c)(3)(C)), a family member of a substantial contributor, or a 35% controlled entity with regard to a substantial contributor? If “Yes,” complete Part I of Schedule L (Form 990 or 990-EZ) .

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

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 9a) 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 9a) 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 section 4943 because of section 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer line 10b 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

Schedule A (Form 990 or 990-EZ) 2015

Page 5

Part IV

Supporting Organizations (continued)

Yes

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

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, (i) a written notice describing the type and amount of support provided during the prior tax year, (ii) a copy of the Form 990 that was most recently filed as of the date of notification, and (iii) 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) 2015

Page 6

Part V

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

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

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) 2015

Page 7

Part V

Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations (continued)

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 2015 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-2015	(iii) Distributable Amount for 2015
1 Distributable amount for 2015 from Section C, line 6
2 Underdistributions, if any, for years prior to 2015 (reasonable cause required--see instructions)
3 Excess distributions carryover, if any, to 2015:
a
b
c
d From 2013.......
e From 2014.......
fTotal of lines 3a through e
g Applied to underdistributions of prior years
h Applied to 2015 distributable amount
i Carryover from 2010 not applied (see instructions)
j Remainder. Subtract lines 3g, 3h, and 3i from 3f.
4Distributions for 2015 from Section D, line 7:
$
a Applied to underdistributions of prior years
b Applied to 2015 distributable amount
c Remainder. Subtract lines 4a and 4b from 4.
5 Remaining underdistributions for years prior to 2015, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions)
6 Remaining underdistributions for 2015. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions)
7 Excess distributions carryover to 2016. Add lines 3j and 4c.
8 Breakdown of line 7:
a
b
c Excess from 2013.......
d From 2014.......
e From 2015.......

Schedule A (Form 990 or 990-EZ) (2015)

Schedule A (Form 990 or 990-EZ) 2015

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) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Political Campaign and Lobbying Activities

For Organizations Exempt From Income Tax Under section 501(c) and section 527
SchCMd Bullet

Complete if the organization is described below. SchCMd Bullet

Attach to Form 990 or Form 990-EZ.
SchCMd Bullet

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

OMB No. 1545-0047

2015

Open to Public
Inspection

If the organization answered "Yes" on Form 990, Part IV, Line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then
Round Bullet

Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.
Round Bullet

Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.
Round Bullet

Section 527 organizations: Complete Part I-A only.
If the organization answered "Yes" on Form 990, Part IV, Line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then
Round Bullet

Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)): Complete Part II-A. Do not complete Part II-B.
Round Bullet

Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A.
If the organization answered "Yes" on Form 990, Part IV, Line 5 (Proxy Tax) (see separate instructions) or Form 990-EZ, Part V, line 35c (Proxy Tax) (see separate instructions), then
Round Bullet

Section 501(c)(4), (5), or (6) organizations: Complete Part III.

Name of the organization

SACRED HEART HOSPITAL

Employer identification number

23-1352208

Part I-A

Complete if the organization is exempt under section 501(c) or is a section 527 organization.

Provide a description of the organization’s direct and indirect political campaign activities in Part IV.

Political expenditures ...................................................................................................................... SchCMd Bullet

Volunteer hours .............................................................................................................................

Part I-B

Complete if the organization is exempt under section 501(c)(3).

Enter the amount of any excise tax incurred by the organization under section 4955 ................................ SchCMd Bullet

Enter the amount of any excise tax incurred by organization managers under section 4955 ....................... SchCMd Bullet

If the organization incurred a section 4955 tax, did it file Form 4720 for this year? .........................................

Yes No

Was a correction made? ......................................................................................................................

Yes No

If "Yes," describe in Part IV.

Part I-C

Complete if the organization is exempt under section 501(c), except section 501(c)(3).

Enter the amount directly expended by the filing organization for section 527 exempt function activities ..... SchCMd Bullet

Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt function activities ............................................................................................................................ SchCMd Bullet

Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b........... SchCMd Bullet

Did the filing organization file Form 1120-POL for this year? ...................................................................

Yes No

Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing
organization made payments. For each organization listed, enter the amount paid from the filing organization’s funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV.

(a) Name	(b) Address	(c) EIN	(d) Amount paid from filing organization's funds. If none, enter -0-.	(e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-.
1
2
3
4
5
6

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

Cat. No. 50084S

Schedule C (Form 990 or 990-EZ) 2015

Page 2

Part II-A

Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).

A Check SchCMd Bullet

if the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share of excess lobbying expenditures).
B Check SchCMd Bullet

if the filing organization checked box A and "limited control" provisions apply.

Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred.)		(b) Affiliated group totals
1a	Total lobbying expenditures to influence public opinion (grass roots lobbying) ...............................................
b	Total lobbying expenditures to influence a legislative body (direct lobbying) ...........................................
c	Total lobbying expenditures (add lines 1a and 1b) .......................................................................
d	Other exempt purpose expenditures .........................................................................................
e	Total exempt purpose expenditures (add lines 1c and 1d) ....................................................................
f	Lobbying nontaxable amount. Enter the amount from the following table in both columns.
	If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:
	Not over $500,00020% of the amount on line 1e.
	Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.
	Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.
	Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.
	Over $17,000,000$1,000,000.

g	Grassroots nontaxable amount (enter 25% of line 1f) ..........................................................................
h	Subtract line 1g from line 1a. If zero or less, enter -0-. ..........................................................................
i	Subtract line 1f from line 1c. If zero or less, enter -0-. ...........................................................................
j	If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting section 4911 tax for this year? ..............................................................................................................	Yes No

4-Year Averaging Period Under section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the separate instructions for lines 2a through 2f.)
Lobbying Expenditures During 4-Year Averaging Period
	Calendar year (or fiscal year beginning in)	(a) 2012	(b) 2013	(c) 2014	(d) 2015	(e) Total

2a	Lobbying nontaxable amount

b	Lobbying ceiling amount (150% of line 2a, column(e))

c	Total lobbying expenditures

d	Grassroots nontaxable amount

e	Grassroots ceiling amount (150% of line 2d, column (e))

f	Grassroots lobbying expenditures

Schedule C (Form 990 or 990-EZ) 2015

Page 3

Part II-B

Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).

For each "Yes" response on lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.

(a)

Yes

(b)

Amount

During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:

Volunteers? ...........................................................................................................

Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ........

Media advertisements? ...................................................................................................

Mailings to members, legislators, or the public? .............................................................................

Publications, or published or broadcast statements? ...........................................................

Grants to other organizations for lobbying purposes? ..........................................................

Direct contact with legislators, their staffs, government officials, or a legislative body? .......................

Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? ..................

Other activities? ...................................................................................................................

Yes

7,633

Total. Add lines 1c through 1i ....................................................................................................

7,633

Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....

If "Yes," enter the amount of any tax incurred under section 4912 ...........................................

If "Yes," enter the amount of any tax incurred by organization managers under section 4912 ...................

If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? ........................

Part III-A

Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).

Yes

Were substantially all (90% or more) dues received nondeductible by members? ...............................................

Did the organization make only in-house lobbying expenditures of $2,000 or less? ............................................

Did the organization agree to carry over lobbying and political expenditures from the prior year? .................................

Part III-B

Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either (a) BOTH Part III-A, lines 1 and 2, are answered "No" OR (b) Part III-A, line 3, is answered “Yes."

Dues, assessments and similar amounts from members ......................................................................

Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political expenses for which the section 527(f) tax was paid).

Current year .............................................................................................................................

Carryover from last year ............................................................................................................

Total ...........................................................................................................................................

Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .

If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ......................................................................................................................

Taxable amount of lobbying and political expenditures (see instructions) .........................................

Part IV

Supplemental Information

Provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; Part II-A (affiliated group list); Part II-A, lines 1 and 2 (see instructions), and Part ll-B, line 1. Also, complete this part for any additional information.

Return Reference	Explanation
PART II-B, LINE 1:	THE ORGANIZATION IS A MEMBER OF THE HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA WHICH ENGAGES IN LOBBYING EFFORTS ON BEHALF OF ITS MEMBER HOSPITALS. TOTAL HAP FEES FOR FY2016 ARE $30,604. A PORTION OF THE DUES PAID TO THIS ORGANIZATION HAS BEEN ALLOCATED TO LOBBYING ACTIVITIES PERFORMED ON BEHALF OF THE ORGANIZATION. THIS ALLOCATION AMOUNTED TO $7,633.

Schedule C (Form 990 or 990EZ) 2015

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," on 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

2015

Open to Public Inspection

Name of the organization

SACRED HEART HOSPITAL

Employer identification number

23-1352208

Part I

Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" on 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" on 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, handling of violations, and enforcing conservation easements during the year
SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, handling of violations, 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" on 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 on 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 on 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) 2015

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" on 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


b	If "Yes," explain the arrangement in Part XIII and complete the following table:		Amount
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" on Form 990, Part IV, line 10.

		(a)Current year	(b)Prior year	(c)Two years back	(d)Three years back	(e)Four years back

1a	Beginning of year balance ....	3,653,064	6,526,527	5,893,410	4,846,304	2,743,989
b	Contributions ...	340,461	1,092,030	1,934,142	3,890,574	5,053,037
c	Net investment earnings, gains, and losses	-890,905	316,983	58,489	244,920	30,968
d	Grants or scholarships ...
e	Other expenditures for facilities and programs ...	2,057,060	4,282,476	1,359,514	3,088,388	2,981,690
f	Administrative expenses ....
g	End of year balance ......	1,045,560	3,653,064	6,526,527	5,893,410	4,846,304

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

Board designated or quasi-endowment SchDMd Bullet

0 %

Permanent endowment SchDMd Bullet

100.000 %

Temporarily restricted endowment SchDMd Bullet

0 %

The percentages on 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" on 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' on Form 990, Part IV, line 11a. See Form 990, Part X, line 10.

Description of property		(a) Cost or other basis (investment)	(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value

1a	Land ...	1,445,773		1,445,773
b	Buildings	78,644,664	58,257,048	20,387,616
c	Leasehold improvements
d	Equipment ...	91,386,896	76,224,502	15,162,394
e	Other ...	978,949		978,949
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).)..				37,974,732

Schedule D (Form 990) 2015

Page 3

Part VII

InvestmentsOther Securities. Complete if the organization answered 'Yes' on 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
(3)Other
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)

Part VIII

InvestmentsProgram Related. Complete if the organization answered 'Yes' on 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

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)

Part IX

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

(a) Description				(b) Book value

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........

Part X

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

1.(a) Description of liability	(b) Book value
(1) Federal income taxes
INTEREST PAYABLE	65,445
DUE TO THIRD-PARTY PAYORS	147,853
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)	213,298
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) 2015

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a.
1	Total revenue, gains, and other support per audited financial statements .......			1	109,260,093
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains (losses) on investments ....	2a	70,891
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIII.) ............	2d	-6,547,189
e	Add lines 2a through 2d .....................			2e	-6,476,298
3	Subtract line 2e from line 1..................			3	115,736,391
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
b	Other (Describe in Part XIII.) ...........	4b	-146,877
c	Add lines 4a and 4b....................			4c	-146,877
5	Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......			5	115,589,514

Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a.
1	Total expenses and losses per audited financial statements ...........			1	110,013,160
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	10,782,651
e	Add lines 2a through 2d....................			2e	10,782,651
3	Subtract line 2e from line 1...................			3	99,230,509
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
b	Other (Describe in Part XIII.) ............	4b	6,407,412
c	Add lines 4a and 4b.....................			4c	6,407,412
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......			5	105,637,921

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 V, LINE 4:	UNCOMPENSATED CARE, HOSPITAL SPECIFIC PROGRAMS AND EDUCATION, EQUIPMENT PURCHASE AND IMPROVEMENTS.
PART X, LINE 2:	THE HOSPITAL ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES BY PRESCRIBING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN 2016 OR 2015. THE HOSPITAL'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES. THE HOSPITAL'S FEDERAL EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURNS ARE NO LONGER SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE FOR YEARS BEFORE 2013.
PART XI, LINE 2D - OTHER ADJUSTMENTS:	CHANGE IN BENEFICIAL INTEREST IN PERPETUAL TRUSTS -788,272. BAD DEBT EXPENSE -6,407,412. TRANSFER FROM AFFILIATES 648,495.
PART XI, LINE 4B - OTHER ADJUSTMENTS:	COST OF GOODS SOLD -146,877.
PART XII, LINE 2D - OTHER ADJUSTMENTS:	COST OF GOODS SOLD 146,877. TRANSFERS TO AFFILIATES 10,635,774.
PART XII, LINE 4B - OTHER ADJUSTMENTS:	BAD DEBT EXPENSE 6,407,412.

Schedule D (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H
(Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

Complete if the organization answered "Yes" on Form 990, Part IV, question 20.
MediumBullet

Attach to Form 990.
MediumBullet

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

SACRED HEART HOSPITAL

Employer identification number

23-1352208

Part I

Financial Assistance and Certain Other Community Benefits at Cost

Yes

Did the organization have a financial assistance policy during the tax year? If "No," skip to question 6a . . . .

Yes

If "Yes," was it a written policy? ......................

Yes

If the organization had multiple hospital facilities, indicate which of the following best describes application of the financial assistance policy to its various hospital facilities during the tax year.

Applied uniformly to all hospital facilities Applied uniformly to most hospital facilities Generally tailored to individual hospital facilities

Answer the following based on the financial assistance eligibility criteria that applied to the largest number of the organization's patients during the tax year.

Did the organization use Federal Poverty Guidelines (FPG) as a factor in determining eligibility for providing free care?

If "Yes," indicate which of the following was the FPG family income limit for eligibility for free care:

Yes

100% 150% 200% Other %

Did the organization use FPG as a factor in determining eligibility for providing discounted care? If "Yes," indicate

which of the following was the family income limit for eligibility for discounted care: . . . . . . . .

Yes

200% 250% 300% 350% 400% Other %

If the organization used factors other than FPG in determining eligibility, describe in Part VI the criteria used for determining eligibility for free or discounted care. Include in the description whether the organization used an asset test or other threshold, regardless of income, as a factor in determining eligibility for free or discounted care.

Did the organization's financial assistance policy that applied to the largest number of its patients during the tax year provide for free or discounted care to the "medically indigent"? . . . . . . . . . . . . .

Yes

Did the organization budget amounts for free or discounted care provided under its financial assistance policy during
the tax year? . . . . . . . . . . . . . . . . . . . . . . .

Yes

If "Yes," did the organization's financial assistance expenses exceed the budgeted amount? . . . . . .

If "Yes" to line 5b, as a result of budget considerations, was the organization unable to provide free or discountedcare to a patient who was eligibile for free or discounted care? . . . . . . . . . . . . .

Did the organization prepare a community benefit report during the tax year? . . . . . . . . .

If "Yes," did the organization make it available to the public? . . . . . . . . . . . . .

Complete the following table using the worksheets provided in the Schedule H instructions. Do not submit these worksheets with the Schedule H.

Financial Assistance and Certain Other Community Benefits at Cost

Financial Assistance and Means-Tested Government Programs		(c) Total community benefit expense	(d) Direct offsetting revenue	(e) Net community benefit expense	(f) Percent of total expense
a	Financial Assistance at cost (from Worksheet 1) . . .	99,271		99,271	0.100 %
b	Medicaid (from Worksheet 3, column a) . . . . .	24,176,678	19,207,742	4,968,936	5.010 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) . .
d	Total Financial Assistance and Means-Tested Government Programs . . . . .	24,275,949	19,207,742	5,068,207	5.110 %
Other Benefits
e	Community health improvement services and community benefit operations (from Worksheet 4).	289,835		289,835	0.290 %
f	Health professions education (from Worksheet 5) . . .	4,166,713	1,053,834	3,112,879	3.140 %
g	Subsidized health services (from Worksheet 6) . . . .	1,424,459	1,293,115	131,344	0.130 %
h	Research (from Worksheet 7) .
i	Cash and in-kind contributions for community benefit (from Worksheet 8) . . . .	51,793	7,427	44,366	0.040 %
j	Total. Other Benefits . .	5,932,800	2,354,376	3,578,424	3.600 %
k	Total. Add lines 7d and 7j .	30,208,749	21,562,118	8,646,631	8.710 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2015

Schedule H (Form 990) 2015

Page

Part II

Community Building Activities Complete this table if the organization conducted any community building activities during the tax year, and describe in Part VI how its community building activities promoted the health of the communities it serves.

		(c) Total community building expense	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing	17,186	17,186	0.020 %
2	Economic development
3	Community support	38,715	38,715	0.040 %
4	Environmental improvements
5	Leadership development and training for community members	4,073	4,073	0 %
6	Coalition building	21,483	21,483	0.020 %
7	Community health improvement advocacy	36,676	36,676	0.040 %
8	Workforce development
9	Other
10	Total	118,133	118,133	0.120 %

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

Did the organization report bad debt expense in accordance with Heathcare Financial Management Association Statement No. 15? ..........................

Yes

Enter the amount of the organization's bad debt expense. Explain in Part VI the methodology used by the organization to estimate this amount. ......

6,407,412

Enter the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy. Explain in Part VI the methodology used by the organization to estimate this amount and the rationale, if any, for including this portion of bad debt as community benefit. ......

3,363,891

Provide in Part VI the text of the footnote to the organization’s financial statements that describes bad debt expense or the page number on which this footnote is contained in the attached financial statements.

Section B. Medicare

Enter total revenue received from Medicare (including DSH and IME).....

27,708,834

Enter Medicare allowable costs of care relating to payments on line 5.....

18,268,986

Subtract line 6 from line 5. This is the surplus (or shortfall)........

9,439,848

Describe in Part VI the extent to which any shortfall reported in line 7 should be treated as community benefit.Also describe in Part VI the costing methodology or source used to determine the amount reported on line 6.Check the box that describes the method used:

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

Did the organization have a written debt collection policy during the tax year? ..........

Yes

If "Yes," did the organization’s collection policy that applied to the largest number of its patients during the tax year
contain provisions on the collection practices to be followed for patients who are known to qualify for financial assistance? Describe in Part VI .........................

Yes

Part IV

Management Companies and Joint Ventures(owned 10% or more by officers, directors, trustees, key employees, and physicians—see instructions)

(a) Name of entity	(b) Description of primary activity of entity	(c) Organization's profit % or stock ownership %	(d) Officers, directors, trustees, or key employees' profit % or stock ownership %	(e) Physicians' profit % or stock ownership %
1
2
3
4
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2015

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest—see instructions) How many hospital facilities did the organization operate during the tax year?1 Name, address, primary website address, and state license number (and if a group return, the name and EIN of the subordinate hospital organization that operates the hospital facility)						Other (Describe)
1	SACRED HEART HOSPITAL 421 W CHEW STREET ALLENTOWN,PA181023406 WWW.SHH.ORG 195501	X	X	X	X	BEHAVIORAL HEALTH SERVICES

Schedule H (Form 990) 2015

Page 4

Part VFacility Information (continued)

Section B. Facility Policies and Practices

(Complete a separate Section B for each of the hospital facilities or facility reporting groups listed in Part V, Section A)

	SACRED HEART HOSPITAL
Name of hospital facility or letter of facility reporting group

Line number of hospital facility, or line numbers of hospital facilities in a facility
reporting group (from Part V, Section A):

Yes

Community Health Needs Assessment

Was the hospital facility first licensed, registered, or similarly recognized by a state as a hospital facility in the current tax year or the immediately preceding tax year?........................

Was the hospital facility acquired or placed into service as a tax-exempt hospital in the current tax year or the immediately preceding tax year? If “Yes,” provide details of the acquisition in Section C...............

During the tax year or either of the two immediately preceding tax years, did the hospital facility conduct a community health needs assessment (CHNA)? If "No," skip to line 12......................

Yes

If "Yes," indicate what the CHNA report describes (check all that apply):

A definition of the community served by the hospital facility

Demographics of the community

Existing health care facilities and resources within the community that are available to respond to the health needs of the community

How data was obtained

The significant health needs of the community

Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups

The process for identifying and prioritizing community health needs and services to meet the community health needs

The process for consulting with persons representing the community’s interests

Information gaps that limit the hospital facility’s ability to assess the community’s health needs

Other (describe in Section C)

Indicate the tax year the hospital facility last conducted a CHNA: 20 15

In conducting its most recent CHNA, did the hospital facility take into account input from persons who represent the broad interests of the community served by the hospital facility, including those with special knowledge of or expertise in public health? If "Yes," describe in Section C how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted .................

Yes

6 a

Was the hospital facility’s CHNA conducted with one or more other hospital facilities? If "Yes," list the other hospital facilities in Section C..................................

Yes

Was the hospital facility’s CHNA conducted with one or more organizations other than hospital facilities?” If “Yes,” list the other organizations in Section C. ............................

Yes

Did the hospital facility make its CHNA report widely available to the public?..............

Yes

If "Yes," indicate how the CHNA report was made widely available (check all that apply):

Hospital facility’s website (list url): WWW.SHH.ORG/COMMUNITY-SERVICES/COMMUNITY-HEALTH-PROFILE/

Other website (list url):

Made a paper copy available for public inspection without charge at the hospital facility

Other (describe in Section C)

Did the hospital facility adopt an implementation strategy to meet the significant community health needs
identified through its most recently conducted CHNA? If "No," skip to line 11. ..............

Yes

Indicate the tax year the hospital facility last adopted an implementation strategy: 20 15

Is the hospital facility's most recently adopted implementation strategy posted on a website?.........

Yes

If "Yes" (list url): WWW.SHH.ORG/COMMUNITY-SERVICES/COMMUNITY-HEALTH-PROFILE/

If "No," is the hospital facility’s most recently adopted implementation strategy attached to this return? ......

10b

Describe in Section C how the hospital facility is addressing the significant needs identified in its most recently conducted CHNA and any such needs that are not being addressed together with the reasons why such needs are not being addressed.

12a

Did the organization incur an excise tax under section 4959 for the hospital facility's failure to conduct a CHNA as required by section 501(r)(3)?...............................

12a

If "Yes" on line 12a, did the organization file Form 4720 to report the section 4959 excise tax?........

12b

If "Yes" on line 12b, what is the total amount of section 4959 excise tax the organization reported on Form 4720 for all of its hospital facilities? $

Schedule H (Form 990) 2015

Page 5

Part VFacility Information (continued)

Financial Assistance Policy (FAP)

	SACRED HEART HOSPITAL
Name of hospital facility or letter of facility reporting group

Yes

Did the hospital facility have in place during the tax year a written financial assistance policy that:

Explained eligibility criteria for financial assistance, and whether such assistance included free or discounted care?

Yes

If “Yes,” indicate the eligibility criteria explained in the FAP:

Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 200.000000000000% and FPG family income limit for eligibility for discounted care of 200.000000000000%

Income level other than FPG (describe in Section C)

Asset level

Medical indigency

Insurance status

Underinsurance discount

Residency

Other (describe in Section C)

Explained the basis for calculating amounts charged to patients?.................

Yes

Explained the method for applying for financial assistance?...................

Yes

If “Yes,” indicate how the hospital facility’s FAP or FAP application form (including accompanying instructions) explained the method for applying for financial assistance (check all that apply):

Described the information the hospital facility may require an individual to provide as part of his or her application

Described the supporting documentation the hospital facility may require an individual to submit as part of his or
her application

Provided the contact information of hospital facility staff who can provide an individual with information about the
FAP and FAP application process

Provided the contact information of nonprofit organizations or government agencies that may be sources of
assistance with FAP applications

Other (describe in Section C)

Included measures to publicize the policy within the community served by the hospital facility?........

Yes

If "Yes," indicate how the hospital facility publicized the policy (check all that apply):

The FAP was widely available on a website (list url):

SHH.ORG/PATIENTS-VISITORS/FINANCIAL-ASSISTANCE/

The FAP application form was widely available on a website (list url):

SHH.ORG/PATIENTS-VISITORS/FINANCIAL-ASSISTANCE/

A plain language summary of the FAP was widely available on a website (list url):
SHH.ORG/PATIENTS-VISITORS/FINANICAL-ASSISTANCE/

The FAP was available upon request and without charge (in public locations in the hospital facility and by mail)

The FAP application form was available upon request and without charge (in public locations in the hospital facility
and by mail)

A plain language summary of the FAP was available upon request and without charge (in public locations in the
hospital facility and by mail)

Notice of availability of the FAP was conspicuously displayed throughout the hospital facility

Notified members of the community who are most likely to require financial assistance about availability of the FAP

Other (describe in Section C)

Billing and Collections

Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained all of the actions the hospital facility or other authorized party may take upon non-payment?..................................

Yes

Check all of the following actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

None of these actions or other similar actions were permitted

Schedule H (Form 990) 2015

Page 6

Part VFacility Information (continued)

	SACRED HEART HOSPITAL
Name of hospital facility or letter of facility reporting group

Yes

Did the hospital facility or other authorized party perform any of the following actions during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP?............

If "Yes," check all actions in which the hospital facility or a third party engaged:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 19. (check all that apply):

Notified individuals of the financial assistance policy on admission

Notified individuals of the financial assistance policy prior to discharge

Notified individuals of the financial assistance policy in communications with the individuals regarding the individuals’ bills

Documented its determination of whether individuals were eligible for financial assistance under the hospital facility’s financial assistance policy

Other (describe in Section C)

None of these efforts were made

Policy Relating to Emergency Medical Care

Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that required the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility’s financial assistance policy?..................

Yes

If "No," indicate why:

The hospital facility did not provide care for any emergency medical conditions

The hospital facility’s policy was not in writing

The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Section C)

Other (describe in Section C)

Charges to Individuals Eligible for Assistance Under the FAP (FAP-Eligible Individuals)

Indicate how the hospital facility determined, during the tax year, the maximum amounts that can be charged to FAP-eligible individuals for emergency or other medically necessary care.

The hospital facility used its lowest negotiated commercial insurance rate when calculating the maximum amounts that
can be charged

The hospital facility used the average of its three lowest negotiated commercial insurance rates when calculating the maximum amounts that can be charged

The hospital facility used the Medicare rates when calculating the maximum amounts that can be charged

Other (describe in Section C)

During the tax year, did the hospital facility charge any FAP-eligible individual to whom the hospital facility provided emergency or other medically necessary services more than the amounts generally billed to individuals who had insurance covering such care? ...............................

If "Yes," explain in Section C.

During the tax year, did the hospital facility charge any FAP-eligible individual an amount equal to the gross charge for any service provided to that individual? ...........................

If "Yes," explain in Section C.

Schedule H (Form 990) 2015

Page 7

Part V

Facility Information (continued)

Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16i, 18d, 19d, 20e, 21c, 21d, 22d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A (“A, 1,” “A, 4,” “B, 2,” “B, 3,” etc.) and name of hospital facility.
Form and Line Reference	Explanation
SACRED HEART HOSPITAL	PART V, SECTION B, LINE 5: THE COALITION OF HOSPITALS HELD FOUR SEPARATE PUBLIC MEETINGS IN THE LEHIGH VALLEY THAT INCLUDED MEMBERS OF THE ALLENTOWN AND BETHLEHEM BUREAUS OF HEALTH, MANY MEMBERS OF THE PUBLIC, AND HEALTHCARE PROFESSIONALS INCLUDING THOSE NOT AFFILIATED WITH OUR HOSPITALS. AS AN ACTIVE MEMBER OF THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY ("HCCLV"), SACRED HEART HOSPITAL WORKED IN COLLABORATION WITH FOUR OTHER REGIONAL, NON-PROFIT ACUTE AND POST-ACUTE CARE HOSPITALS AND THE DOROTHY RIDER POOL TRUST TO DEVELOP THE REGION'S COMMUNITY HEALTH NEEDS ASSESSMENT. THE HOSPITAL PARTNERS OF THE HCCLV INCLUDE: - SACRED HEART HEALTHCARE SYSTEM - LEHIGH VALLEY HEALTH NETWORK - ST. LUKE'S UNIVERSITY HEALTH NETWORK - GOOD SHEPHERD REHABILITATION HOSPITAL - KIDSPEACETHE HCCLV'S APPROACH TO THE CHNA INCORPORATES BEST PRACTICE STANDARDS RECOMMENDED BY THE AMERICAN PUBLIC HEALTH ASSOCIATION ("APHA") AND THE ASSOCIATION FOR COMMUNITY HEALTH IMPROVEMENT ("ACHI") AND HAS ACTIVELY PARTNERED WITH MANY STAKEHOLDERS, COMMUNITY BASED ORGANIZATIONS AND COMMUNITY MEMBERS.THE DOROTHY RIDER POOL TRUST REACHED OUT TO TWO COMMUNITY-BASED ORGANIZATIONS, THE HISPANIC CENTER LEHIGH VALLEY IN BETHLEHEM AND THE RESURRECTED COMMUNITY DEVELOPMENT CORPORATION IN ALLENTOWN, ASORGANIZATIONS TRUSTED WITHIN EACH COMMUNITY TO HOST THE FORUMS. THESE ORGANIZATIONS PUBLICIZED THE EVENTS AMONG STAKEHOLDERS, RECRUITED ATTENDEES, ORGANIZED REFRESHMENTS FROM LOCAL INDEPENDENT VENDORS, AND PROVIDED WELCOME AND INTRODUCTIONS AT THE START OF EACH FORUM.
SACRED HEART HOSPITAL	PART V, SECTION B, LINE 6A: OUR CHNA WAS CREATED IN PARTNERSHIP WITH LEHIGH VALLEY HEALTH NETWORK, ST. LUKE'S UNIVERSITY HOSPITAL NETWORK, GOOD SHEPHERD REHABILITATION HOSPITAL, KIDSPEACE, AND SACRED HEART HEALTHCARE SYSTEM. THE COALITION IS KNOWN AS THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY ("HCCLV").
SACRED HEART HOSPITAL	PART V, SECTION B, LINE 6B: OUR CHNA WAS ALSO CREATED IN PARTNERSHIP WITH THE DOROTHY RIDER POOL HEALTH CARE TRUST.
SACRED HEART HOSPITAL	PART V, SECTION B, LINE 7D: IN ADDITION TO THIS BEING MADE AVAILABLE TO THE PUBLIC ON OUR WEBSITE, ALL PARTICIPANTS OF THE AFORE-MENTIONED HCCLV HAVE POSTED THIS INFO ON THEIR WEBSITES.
SACRED HEART HOSPITAL	PART V, SECTION B, LINE 11: SACRED HEART HOSPITAL HAS PREPARED AND ADOPTED A WRITTEN IMPLEMENTATION PLAN TO ADDRESS THE SIGNIFICANT NEEDS OUTLINED IN THE COMMUNITY HEALTH NEEDS ASSESSMENT. UNMET HEALTHCARE NEEDS THAT WERE IDENTIFIED INCLUDE: HOUSING CONDITIONS, NUTRITION AND FOOD, SOCIAL ASSOCIATIONS AND CHILDHOOD OBESITY, SMOKING AND PREVENTION ACTIVITIES FOR WOMEN'S HEALTH. OUR PRIORITY UNMET NEEDS IN THE IMPLEMENTATION PLAN ARE INTEGRAL TO OUR COMMUNITY BENEFIT STRATEGY. THE HOSPITAL'S STRATEGIES FOR MEETING THESE NEEDS ARE DESCRIBED IN THE IMPLEMENTATION PLAN. SACRED HEART'S LEADERS CONTINUE TO MONITOR NEW PROGRAM DEVELOPMENTS AND SERVICES. SOME NEEDS CANNOT BE ADDRESSED FULLY BY THE HOSPITAL ALONE SUCH AS THE HOUSING ISSUE. WHEREAS THE HOSPITAL CANNOT BE SOLELY RESPONSIBLE FOR ADDRESSING THESE ISSUES, IT CAN TAKE ADVANTAGE OF OPPORTUNITIES TO PLAY A STRONGER AND BETTER ROLE IN MONITORING THESE ACTIVITIES AND COMMUNICATING WITH THE APPROPRIATE AGENCIES.

Schedule H (Form 990) 2015

Page 8

Part VFacility Information (continued)

Section D. Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, from largest to smallest) How many non-hospital health care facilities did the organization operate during the tax year?10
Name and address		Type of Facility (describe)
1	1 - SH CARDIOVASCULAR CENTER 325 NORTH 5TH STREET SUITE 2001 ALLENTOWN,PA18102	OUTPATIENT FACILITY
2	2 - SH IMAGING NORTHAMPTON 602 B EAST 21ST STREET NORTHAMPTON,PA18067	OUTPATIENT FACILITY
3	3 - NUCLEAR MEDICINE 325 NORTH 5TH STREET ALLENTOWN,PA18102	OUTPATIENT FACILITY
4	4 - SACRED HEART OUTPATIENT REHAB SERVICES 1227 LIBERTY STREET SUITE 102 ALLENTOWN,PA18102	OUTPATIENT FACILITY
5	5 - ALLENTOWN FAMILY PRACTICE 450 CHEW STREET SUITE 101 ALLENTOWN,PA18102	OUTPATIENT FACILITY
6	6 - CENTER FOR CANCER CARE 325 NORTH 5TH STREET ALLENTOWN,PA18102	OUTPATIENT FACILITY
7	7 - LANSHE BREAST CENTER 451 CHEW STREET SUITE 210 ALLENTOWN,PA18102	OUTPATIENT FACILITY
8	8 - SH PEDIATRIC AND ADOLESCENT SERVICES 450 CHEW STREET SUITE 202 ALLENTOWN,PA18102	OUTPATIENT FACILITY
9	9 - OBGYN SERVICES 450 CHEW STREET SUITE 201 ALLENTOWN,PA18102	OUTPATIENT FACILITY
10	10 - SH DENTAL CENTER 450 CHEW STREET SUITE 201 ALLENTOWN,PA18102	OUTPATIENT FACILITY

Schedule H (Form 990) 2015

Page 9

Part VI

Supplemental Information

Provide the following information.

1	Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b.
2	Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B.
3	Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization’s financial assistance policy.
4	Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves.
5	Promotion of community health. Provide any other information important to describing how the organization’s hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.).
6	Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served.
7	State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report.

Form and Line Reference	Explanation
PART I, LINE 7:	WITH THE EXCEPTION OF LINE G, THE COST TO CHARGE RATIO, CALCULATED BY USING WORKSHEET 2, WAS APPLIED. FOR LINE G - THE ACTUAL DEPARTMENTAL COST TO CHARGE RATIO WAS APPLIED.
PART I, LINE 7G:	ALL OF LINE 7G IS ATTRIBUTABLE TO CLINICS AND OTHER SUBSIDIZED HEALTH SERVICES RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS CONSTITUTING COMMUNITY BENEFIT.
PART I, LINE 7, COLUMN (F):	THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 6,407,412.
PART II, COMMUNITY BUILDING ACTIVITIES:	COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY THIS ORGANIZATION IMPROVE THE MEDICAL AND SOCIOECONOMIC WELL-BEING OF THE COMMUNITIES IN OUR CARE. THIS IS ACCOMPLISHED THROUGH SERVICE ON STATE AND REGIONAL ADVOCACY COMMITTEES AND BOARDS, VOLUNTEERISM WITH LOCAL COMMUNITY-BASED NON-PROFIT ADVOCACY GROUPS, AND PARTICIPATION IN CONFERENCES AND OTHER EDUCATIONAL ACTIVITIES TO PROMOTE UNDERSTANDING OF THE ROOT CAUSES OF HEALTH CONCERNS. THIS ORGANIZATION PROVIDES EDUCATIONAL MATERIALS, CONDUCTS COMMUNITY HEALTH FAIRS, AND HOLDS HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS. PRESENTATIONS ARE PROVIDED BY PHYSICIANS, NURSES, AND OTHER HEALTHCARE PROFESSIONALS.
PART III, LINE 2:	BAD DEBT EXPENSE WAS CALCULATED USING THE ORGANIZATION'S BAD DEBT EXPENSE FROM ITS AUDITED FINANCIAL STATEMENTS, NET OF ACCOUNTS WRITTEN OFF AT CHARGES.
PART III, LINE 3:	BAD DEBT EXPENSE WAS CALCULATED USING THE ORGANIZATION'S BAD DEBT EXPENSE FROM ITS AUDITED FINANCIAL STATEMENTS, NET OF ACCOUNTS WRITTEN OFF AT CHARGES AND MULTIPLIED BY ITS COST TO CHARGE RATIO.THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES AND MISSION IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUAL'S IN A NON-DISCRIMINATORY MANNER WITHOUT REGARD TO RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY AND CONSISTENT WITH THE COMMUNITY BENEFIT STANDARD PROMULGATED BY THE IRS.
PART III, LINE 4:	ACCOUNTS RECEIVABLE, PATIENTS ARE REPORTED AT NET REALIZABLE VALUE. ACCOUNTS ARE WRITTEN OFF WHEN THEY ARE DETERMINED TO BE UNCOLLECTIBLE BASED UPON MANAGEMENT'S ASSESSMENT OF INDIVIDUAL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF PATIENT ACCOUNTS RECEIVABLE, THE HOSPITAL ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE HOSPITAL ANALYZES CONTRACTUAL AMOUNTS DUE AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY. FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS, THE HOSPITAL RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE BILLED RATES AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS.
PART III, LINE 8:	MEDICARE COSTS WERE DERIVED FROM THE MEDICARE COST REPORT FILED BY THE ORGANIZATION.THE HOSPITAL CONTINUES TO PROVIDE CARE TO ALL PRESENTING AND ADMITTED PATIENTS, REGARDLESS OF ABILITY OR PAY. NOTWITHSTANDING THE COSTS TO PROVIDE CARE, RECEIVING "LESS" THAN WHAT IT COSTS TO PROVIDE ADEQUATE CARE TO MEDICARE COVERED LIVES WOULD DO THE HOSPITAL A DISSERVICE. ANY MEDICARE SHORTFALL SHOULD COUNT AS A COMMUNITY BENEFIT.
PART III, LINE 9B:	AFTER AN ASSESSMENT OF MEDICAL NECESSITY IS COMPLETED AND FINANCIAL ABILITY IS DETERMINED, SHH MAY PROVIDE FREE CARE TO PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE UNDER THIS POLICY. SHH WILL FOLLOW STANDARD PROCEDURES IN DETERMINING ELIGIBILITY FOR FINANCIAL ASSISTANCE AND IN COLLECTING ON DELINQUENT PATIENT ACCOUNTS AS FOLLOWS:ANY PATIENT SEEKING URGENT OR EMERGENT CARE (WITHIN THE MEANING OF SECTION 1867 OF THE SOCIAL SECURITY ACT) AT SHH SHALL BE TREATED WITHOUT DISCRIMINATION AND WITHOUT REGARD TO A PATIENT'S ABILITY TO PAY FOR CARE.FINANCIAL ASSISTANCE FOR MEDICALLY NECESSARY SERVICES IS AVAILABLE BASED ON THE PATIENT'S FAMILY INCOME. FREE CARE WILL BE GRANTED TO THOSE UNINSURED OR UNDERINSURED PATIENTS WHOSE FAMILY INCOME IS EQUAL TO OR LESS THAN 200% OF THE MOST RECENTLY PUBLISHED FEDERAL POVERTY INCOME GUIDELINES (FPG).PATIENTS MAY ALSO BE GRANTED A DISCOUNT BASED UPON MEDICAL INDIGENCE. A DETERMINATION AS TO A PATIENT'S MEDICAL INDIGENCE TAKES INTO CONSIDERATION SIGNIFICANT MEDICAL BILLS NOT COVERED BY INSURANCE, IN ADDITION TO THE PATIENT'S INCOME LEVEL AND LIQUID ASSETS.COLLECTIONS GUIDELINES SHALL APPLY TO HOSPITAL BILLS FOR PATIENTS DEEMED INELIGIBLE FOR FINANCIAL ASSISTANCE BASED ON THEIR INCOME AND FAMILY SIZE.
PART VI, LINE 2:	SACRED HEART HOSPITAL, IN CONJUNCTION WITH THREE OTHER REGIONAL NON-PROFIT HOSPITALS AND A LOCAL TRUST, COLLABORATED ON A COMMUNITY HEALTH NEEDS ASSESSMENT AND ACTION PLAN. INTERNALLY, SACRED HEART HOSPITAL HAS CREATED A COMMUNITY HEALTH COMMITTEE COMPRISED OF BOARD MEMBERS AND STAFF THAT WILL ADMINISTER THE IMPLEMENTATION OF THE ACTION PLAN.THE OBJECTIVE OF THIS COLLABORATION IS TO DEVELOP A COMMUNITY HEALTH NEEDS ASSESSMENT THAT WILL FULFILL THE REQUIREMENTS OF SECTION 9007 OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT. JUST AS IMPORTANTLY AND IN THE SPIRIT OF THIS ACT, THE GROUP'S FINDINGS WILL SERVE AS A VEHICLETO PROMOTE BETTER COOPERATION AMONG ITS MEMBERS AND OUR COMMUNITY PARTNERS WHILE CREATING A PLAN OF ACTION THAT WILL ALLOW US TO BETTER SERVE THE HEALTH CARE NEEDS OF THE REGION.THE INITIAL COMMUNITY HEALTH NEEDS ASSESSMENT WAS CONDUCTED IN 2013. A SECOND COMMUNITY HEALTH NEEDS ASSESSMENT WAS COMPLETED IN 2016. THE FINAL COMMUNITY HEALTH NEEDS ASSESSMENT WAS MADE AVAILABLE IN JANUARY 2013, AND AN IMPLEMENTATION PLAN WAS DEVELOPED IN THE EARLY SPRING OF 2016. ALL DOCUMENTS WERE ACCEPTED AND APPROVED BY THE SACRED HEART HOSPITAL BOARD OF DIRECTORS IN APRIL 2016.
PART VI, LINE 3:	ON EACH OF THE BILLING STATEMENTS IT STATES: "SACRED HEART HOSPITAL PROVIDES FREE CARE TO PERSONS WHO QUALIFY. IF YOU CANNOT AFFORD THE COST OF YOUR CARE, YOU ARE ENCOURAGED TO APPLY FOR FREE CARE BY CALLING 610-776-4566". IF THE PATIENT CALLS IN, THE HOSPITAL HELPS SCREEN THEM FOR MEDICAL ASSISTANCE (MA) ELIGIBILITY AND REFER TO "ADREIMA" (ADVANCED REIMBURSEMENT MANAGEMENT TO DO AN MA APPLICATION IF APPROPRIATE).IF THE PATIENT DOES NOT QUALIFY FOR MA, THE HOSPITAL REQUESTS THE NECESSARY DOCUMENTATION TO DETERMINE ELIGIBILITY FOR CHARITY. FOR THE PATIENTS THAT DO NOT QUALIFY FOR MA OR CHARITY, THE HOSPITAL OFFERS A 75% SELF PAY REDUCTION FROM GROSS CHARGES AND/OR A PAYMENT PLAN. IN ADDITION TO THE STATEMENTS, THIS INFORMATION IS PROVIDED IN ADMISSION PACKETS, AT REGISTRATION, IN THE EMERGENCY FACILITY, ON ALL BILLS, AND ON THE HOSPITAL'S WEB SITE.
PART VI, LINE 4:	SACRED HEART HOSPITAL IS LOCATED IN THE LOWEST PER CAPITA INCOME ZIP CODE IN ALLENTOWN, PA. OVER 57% OF THE POPULATION OF ALLENTOWN IS MINORITY, IN THE SCHOOLS IT IS MORE LIKE 87% MINORITY. ALLENTOWN SCHOOL DISTRICT HAS 87% OF ITS STUDENTS RECEIVING FREE OR REDUCED LUNCH, AN INDICATOR OFPOVERTY. MANY CHILDREN IN ALLENTOWN ARE INSURED BY PA-CHIP OR HAVE NO INSURANCE BECAUSE THEY MAY BE ILLEGALLY IN THE UNITED STATES WITH THEIR FAMILIES. A TOTAL OF 80% OF INPATIENTS HAVE EITHER GOVERNMENT PAID INSURANCE (MEDICARE/MEDICAID, MA MANAGED CARE) OR ARE SELF-PAY; OF OUTPATIENT CARE, 71% IS PAID BY GOVERNMENT INSURANCE OR SELF-PAY.
PART VI, LINE 5:	THE EXAMPLES LISTED IN THE HEALTH NEEDS ASSESSMENT HELP BUILD OUR COMMUNITY BY IMPROVING THE HEALTH STATUS OF CHILDREN, IMPROVING IMMUNIZATION RATES, AND PROVIDING CARE FOR CHRONIC DISEASE MANAGEMENT (ASTHMA, DIABETES, OBESITY). PARISH NURSING PROVIDES NEEDED ACCESS TO CARE FOR THE MOST INDIGENT OF ALLENTOWN, INCLUDING THE HOMELESS AND UNDOCUMENTED INDIVIDUALS.THE HOSPITAL OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545:1. PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF THEIR ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE, AND MEDICAID PATIENTS;2. OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR;3. MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS;4. CONTROL RESTS WITH ITS BOARD OF DIRECTORS AND THE BOARD OF DIRECTORS OF SACRED HEART HEALTHCARE SYSTEM. BOTH BOARDS ARE COMPRISED OF A MAJORITY OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES, AND ADVANCE MEDICAL CARE PROGRAMS AND ACTIVITIES.
PART VI, LINE 6:	OUTLINED BELOW IS A SUMMARY OF THE ENTITIES WHICH COMPRISE SACRED HEART HEALTHCARE SYSTEM:NOT FOR-PROFIT SACRED HEART HEALTHCARE SYSTEM ENTITIES:- SACRED HEART HEALTHCARE SYSTEM - SACRED HEART HEALTHCARE SYSTEM IS THE TAX-EXEMPT PARENT OF SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"). THIS INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTS OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THIS ORGANIZATION IS THE SOLE MEMBER OR STOCKHOLDER OF EACH AFFILIATED ENTITY. THE SYSTEM IS AN INTEGRATED HEALTHCARE SYSTEM OF PROVIDERS THROUGHOUT THE STATE OF PENNSYLVANIA.SACRED HEART HEALTHCARE SYSTEM IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3).AS THE PARENT ORGANIZATION, SACRED HEART HEALTHCARE SYSTEM STRIVES TO CONTINUALLY DEVELOP AND OPERATE A HEALTHCARE NETWORK WHICH PROVIDES SUBSTANTIAL COMMUNITY BENEFIT THROUGH THE PROVISION OF A COMPREHENSIVE SPECTRUM OF HEALTHCARE SERVICES TO THE RESIDENTS OF PENNSYLVANIA AND SURROUNDING COMMUNITIES. SACRED HEART HEALTHCARE SYSTEM ENSURES THAT THE SYSTEM PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN,RELIGION, OR ABILITY TO PAY. NO INDIVIDUALS ARE DENIED NECESSARY MEDICAL CARE, TREATMENT, OR SERVICES. SACRED HEART HEALTHCARE SYSTEM INCLUDES SACRED HEART HOSPITAL.-SACRED HEART FOUNDATION - SACRED HEART FOUNDATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3).THROUGH FUNDRAISING SERVICES, THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS, AND SERVICES OF SACRED HEART HOSPITAL; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION, OR ABILITY TO PAY.- SH REALTY CORPORATION - SH REALTY CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(2). THE ORGANIZATION SUPPORTS SACRED HEART HOSPITAL, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION, OR ABILITY TO PAY AND IS PRIMARILY RESPONSIBLE FOR THE MANAGEMENT AND OPERATION OF RENTAL SPACE FOR VARIOUS AFFILIATES OF THE SACRED HEART HEALTHCARE SYSTEM.FOR-PROFIT SACRED HEART HEALTHCARE SYSTEM ENTITIES:- SACRED HEART ANCILLARY SERVICES, INC. - SACRED HEART ANCILLARY SERVICES, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SACRED HEART HEALTHCARE SYSTEM. THE ORGANIZATION IS LOCATED IN ALLENTOWN, LEHIGH COUNTY, PENNSYLVANIA. THE ORGANIZATION PROVIDES HEALTHCARE SERVICES TO INDIVIDUALS.PART VI, LINE 7: N/A. THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN PENNSYLVANIA. NO COMMUNITY BENEFIT REPORT IS FILED WITH THE COMMONWEALTH OF PA.

Schedule H (Form 990) 2015

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," on 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

2015

Open to Public
Inspection

Name of the organization
SACRED HEART HOSPITAL

Employer identification number
23-1352208

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" on 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	(e) Amount of non-cash assistance	(f) Method of valuation (book, FMV, appraisal, other)	(g) Description of non-cash assistance	(h) Purpose of grant or assistance

(1) LEHIGH CONFERENCE OF CHURCHES 534 CHEW STREET ALLENTOWN,PA181022228	23-1484205	501(C)(3)	11,250	GENERAL SUPPORT
(2) NEW VENTURE FUND 1201 CONNECTICUT AVE NW WASHINGTON,DC20036	20-5806345	501(C)(3)	8,333	GENERAL PURPOSE
(3) CATHOLIC CHARITIES 530 UNION BLVD ALLENTOWN,PA18109	23-1598117	501(C)(3)	5,000	GENERAL PURPOSE

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) 2015

Page 2

Part III

Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" on 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

(1)
(2)
(3)
(4)
(5)
(6)
(7)

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:	GRANTS ARE MONITORED BY THE ORGANIZATION'S FINANCE PERSONNEL THROUGH THE UTILIZATION OF COST CENTERS AND OTHER INFORMATION; INCLUDING WRITTEN DOCUMENTATION AND RECEIPTS.

Schedule I (Form 990) 2015

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" on 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

2015

Open to Public Inspection

Name of the organization

SACRED HEART HOSPITAL

Employer identification number

23-1352208

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 on 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 on 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? .........

Yes

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 on 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," on line 5a or 5b, describe in Part III.

For persons listed on 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," on line 6a or 6b, describe in Part III.

For persons listed on 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 ............

Yes

Were any amounts reported on 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" on 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) 2015

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 on 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 on 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)
1JOHN L NESPOLIPRESIDENT/CEO	(i) (ii)	0 ------------- 416,025	0 ------------- 68,931	0 ------------- 7,524	0 ------------- 5,300	0 ------------- 20,248	0 ------------- 518,028	0 ------------- 0
2DANIEL C CONFALONECFO	(i) (ii)	0 ------------- 279,232	0 ------------- 42,805	0 ------------- 129	0 ------------- 3,032	0 ------------- 23,352	0 ------------- 348,550	0 ------------- 0
3STEPHEN A LANSHE ESQVP & GENERAL COUNSEL	(i) (ii)	0 ------------- 298,547	0 ------------- 45,954	0 ------------- 774	0 ------------- 5,300	0 ------------- 25,164	0 ------------- 375,739	0 ------------- 0
4ANDREW UNGERPHYSICIAN	(i) (ii)	219,301 ------------- 0	0 ------------- 0	258 ------------- 0	4,470 ------------- 0	24,042 ------------- 0	248,071 ------------- 0	0 ------------- 0
5DANIEL COLLERPHYSICIAN	(i) (ii)	204,391 ------------- 0	0 ------------- 0	762 ------------- 0	4,164 ------------- 0	19,988 ------------- 0	229,305 ------------- 0	0 ------------- 0
6RICHARD MARTINPHYSICIAN	(i) (ii)	203,946 ------------- 0	0 ------------- 0	0 ------------- 0	4,184 ------------- 0	12,082 ------------- 0	220,212 ------------- 0	0 ------------- 0
7ATIRA RAHMANPHYSICIAN	(i) (ii)	172,090 ------------- 0	0 ------------- 0	138 ------------- 0	3,206 ------------- 0	23,614 ------------- 0	199,048 ------------- 0	0 ------------- 0
8NANDHINI VEEREAEAGHAVENPHYSICIAN	(i) (ii)	169,738 ------------- 0	0 ------------- 0	90 ------------- 0	3,400 ------------- 0	554 ------------- 0	173,782 ------------- 0	0 ------------- 0

Schedule J (Form 990) 2015

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
PART I, LINE 3	A RELATED ORGANIZATION, SACRED HEART HEALTHCARE SYSTEM, USES THE FOLLOWING METHODS TO DETERMINE COMPENSATION FOR THE PRESIDENT/CEO: COMPENSATION COMMITTEE, COMPENSATION SURVEY OR STUDY AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.
PART I, LINE 4B	THE FOLLOWING INDIVIDUALS PARTICIPATE IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN: JOHN NESPOLI, DAN CONFALONE, STEPHEN LANSHE
PART I, LINE 7	CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING THE CALENDAR YEAR AS REPORTED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S FORM W-2 AS TAXABLE WAGES. BONUSES ARE BASED ON OPERATIONAL GROWTH, PATIENT SATISFACTION, AND FINANCIAL AND CLINICAL QUALITY GOALS SET EACH YEAR.

Schedule J (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Part VI.
SchKMediumBullet

Attach to Form 990.
SchKMediumBullet

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

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization
SACRED HEART HOSPITAL

Employer identification number
23-1352208

Part I

Bond Issues

(a) Issuer name		(b) Issuer EIN	(c) CUSIP #	(d) Date issued	(e) Issue price	(f) Description of purpose	(g) Defeased		(h) On behalf of issuer		(i) Pool financing
(a) Issuer name		(b) Issuer EIN	(c) CUSIP #	(d) Date issued	(e) Issue price	(f) Description of purpose	Yes	No	Yes	No	Yes	No
A	LEHIGH COUNTY GENERAL PURPOSE AUTH HOSP REV BONDS	91-1886539		04-04-2013	9,804,309	TO REFUND SERIES 2005 BONDS		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired ..................	1,575,057
2 Amount of bonds legally defeased ..............
3 Total proceeds of issue ..................	9,804,309
4 Gross proceeds in reserve funds .............
5 Capitalized interest from proceeds .............
6 Proceeds in refunding escrows ...............	2,577,173
7 Issuance costs from proceeds ...............	196,086
8 Credit enhancement from proceeds .............
9 Working capital expenditures from proceeds .............
10 Capital expenditures from proceeds .............
11 Other spent proceeds .............	7,031,050
12 Other unspent proceeds .............
13 Year of substantial completion .............	2013
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? ....	X
15 Were the bonds issued as part of an advance refunding issue? .....	X
16 Has the final allocation of proceeds been made? ..........	X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? ..................	X

Part III

Private Business Use

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? .............		X
2 Are there any lease arrangements that may result in private business use of bond-financed property? ...............		X

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

Cat. No. 50193E

Schedule K (Form 990) 2015

Page 2

Part III

Private Business Use (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
3a Are there any management or service contracts that may result in private business use of bond-financed property? .............	X
b If "Yes" to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property?	X
c Are there any research agreements that may result in private business use of bond-financed property? .............		X
d If "Yes" to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property?
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government ....	0 %
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government .........	0 %
6 Total of lines 4 and 5 .............	0 %
7 Does the bond issue meet the private security or payment test? ...		X
8a Has there been a sale or disposition of any of the bond-financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?.............		X
b If "Yes" to line 8a, enter the percentage of bond-financed property sold or disposed of. ..
c If "Yes" to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? .............
9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2? ........	X

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has the issuer filed Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate? ...		X
2 If "No" to line 1, did the following apply? ....
a Rebate not due yet? .......	X
b Exception to rebate? ........		X
c No rebate due? .........		X
If "Yes" to line 2c, provide in Part VI the date the rebate computation was performed ......
3 Is the bond issue a variable rate issue? .....		X
4a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue?		X
b Name of provider ..........
c Term of hedge .........
d Was the hedge superintegrated? ......
e Was the hedge terminated? ........

Schedule K (Form 990) 2015

Page 3

Part IV

Arbitrage (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
5a Were gross proceeds invested in a guaranteed investment contract (GIC)?		X
b Name of provider ..........
c Term of GIC .........
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? ........
6 Were any gross proceeds invested beyond an available temporary period?	X
7 Has the organization established written procedures to monitor the requirements of section 148? ...	X

Part V

Procedures To Undertake Corrective Action

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations?	X

Part VI

Supplemental Information. Provide additional information for responses to questions on Schedule K (see instructions).

Return Reference	Explanation

Schedule K (Form 990) 2015

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

2015

Open to Public
Inspection

Name of the organization

SACRED HEART HOSPITAL

Employer identification number

23-1352208

Return Reference	Explanation
FORM 990, PART III, LINE 4A	SACRED HEART HOSPITAL IS LOCATED IN AN AREA WITH A HIGH CONCENTRATION OF LOW INCOME HOUSEHOLDS. AS A RESULT, THE HOSPITAL PROVIDES CARE TO A LARGE NUMBER OF INDIGENT PATIENTS. IN THE FISCAL YEAR ENDED JUNE 30, 2016 PATIENTS WITH MEDICAID, MA MANAGED CARE OR NO INSURANCE AT ALL MADE UP 33.28% OF SACRED HEART'S INPATIENT VOLUME AND 32.31% OF ITS OUTPATIENT VOLUME. THE HOSPITAL PROVIDES CHARITY CARE TO PATIENTS WHO MEET CERTAIN CRITERIA BY PROVIDING SERVICES AT A REDUCED RATE OR AT NO CHARGE AT ALL. IN FISCAL YEAR 2016 THE HOSPITAL WROTE OFF $100,000 IN CHARGES PURSUANT TO ITS CHARITY CARE POLICY. ALSO, IN RECOGNIZING ITS MISSION TO THE COMMUNITY, THE HOSPITAL PROVIDES CARE TO PERSONS COVERED BY MEDICAL ASSISTANCE WHICH REIMBURSES THE HOSPITAL BELOW INCURRED COSTS. SACRED HEART HOSPITAL ("SHH") IS A GENERAL MEDICAL, SURGICAL AND TEACHING HOSPITAL. SHH IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. SHH IS AN AFFILIATE OF THE SACRED HEART HEALTHCARE SYSTEM; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. PURSUANT TO ITS CHARITABLE PURPOSES, SHH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, SHH OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1) SHH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2) SHH OPERATES AN ACTIVE EMERGENCY DEPARTMENT FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3) SHH MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; AND 4) CONTROL OF SHH RESTS WITH ITS BOARD OF DIRECTORS; WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY. 5) SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. THE MISSIONARY SISTERS OF THE MOST SACRED HEART RELIGIOUS ORDER IN GERMANY ARRIVED IN ALLENTOWN ON JUNE 15, 1912 TO HELP CARE FOR THE SICK AND INJURED OF THE SACRED HEART PARISH DURING A WIDESPREAD DIPHTHERIA OUTBREAK. AS DIPHTHERIA RAGED, THE SISTERS GAVE DISPENSARY SERVICES AS WELL AS VISITING NURSE SERVICES. THIS WAS THE ACTUAL "START" OF SACRED HEART HOSPITAL. IN 1915, THE ACTUAL FOUNDING OF SACRED HEART HOSPITAL AS A COMMUNITY INSTITUTION WAS FORMALIZED AND DEDICATED. TWO YEARS LATER, SACRED HEART HOSPITAL WAS OFFICIALLY INCORPORATED UNDER PENNSYLVANIA LAW. IN 1920, SACRED HEART HOSPITAL RECEIVED APPROVAL TO TRAIN INTERNS AND IN 1922 WAS ACCREDITED BY THE AMERICAN COLLEGE OF SURGEONS. SINCE THEN, SACRED HEART HOSPITAL HAS EXPANDED ITS CAMPUS AND ITS REACH ACROSS OUR COMMUNITY. OUR CAMPUS INCLUDES A 215-BED CATHOLIC MEDICAL CENTER WHICH OFFERS A WIDE RANGE OF ADVANCED MEDICAL, SURGICAL AND OUTPATIENT HOSPITAL SERVICES. SACRED HEART HEALTHCARE SYSTEM AND ITS AFFILIATES ("SACRED HEART") PROVIDE A VAST RANGE OF SPECIALTY SERVICES AT OUR 421 CHEW STREET LOCATION IN ALLENTOWN, PA, INCLUDING BARIATRIC SERVICES, BEHAVIORAL HEALTH, CANCER CARE, CARDIAC SERVICES, EMERGENCY SERVICES, ENDOVASCULAR SERVICES, IMAGING SERVICES, LABORATORY SERVICES, LUNG AND RESPIRATORY SERVICES, NEURODIAGNOSTIC TESTING, NEUROLOGY, ORTHOPEDICS, PAIN MANAGEMENT, SENIOR SERVICES, SLEEP DISORDERS, STROKE CARE, SURGICAL SERVICES, TRANSITIONAL CARE, WOMEN'S HEALTH AND WOUND CARE SERVICES. IN ADDITION TO HOSPITAL SERVICES, SACRED HEART PROVIDES AN EXTENSIVE LIST OF MEDICAL SERVICES OUTSIDE OF THE HOSPITAL TO BETTER MEET THE NEEDS OF OUR PATIENTS AND COMMUNITY POPULATIONS. A NETWORK OF PHYSICIAN PRACTICES THROUGHOUT LEHIGH AND NORTHAMPTON COUNTIES PROVIDES COMPLETE PRIMARY MEDICAL CARE TO THE REGION'S RESIDENTS. IN ADDITION TO THE PHYSICIAN PRACTICES, SACRED HEART PROVIDES ACCESS TO OUTPATIENT SERVICES INCLUDING LABORATORY, IMAGING, RETAIL PHARMACY, INFUSION, RESPIRATORY AND OUTPATIENT REHABILITATION. SACRED HEART OFFERS OUTREACH TO COMMUNITY MEMBERS IN NEED OF CARE THROUGH ITS HOME HEALTH PROGRAM REACHING PATIENTS IN THEIR HOME ENVIRONMENT AFTER HOSPITALIZATION OR MEDICAL CARE. SACRED HEART'S HOSPICE PROGRAM SUPPORTS MANY FAMILIES WITH A GOAL OF ENABLING TERMINALLY ILL PATIENTS, YOUNG AND OLD, TO LIVE LIFE TO THE FULLEST IN THEIR HOMES AMONG FAMILY AND FRIENDS. THROUGH PARISH NURSING, SACRED HEART IMPACTS FIVE CONGREGATIONS OF INDIVIDUALS, PROVIDING HOLISTIC NURSING CARE TO FAITH COMMUNITY MEMBERS ACROSS THE LIFE SPAN AND FACILITATES WELLNESS AND THE PROMOTION OF A HEALING COMMUNITY. SACRED HEART ALSO FUNCTIONS AS AN EDUCATOR FOR PARISH NURSES THROUGHOUT THE LEHIGH VALLEY THROUGH THE PARISH NURSING COALITION OF THE GREATER LEHIGH VALLEY. TO HELP ENSURE CHILDREN IN OUR COMMUNITY RECEIVE HIGH QUALITY HEALTHCARE, SACRED HEART PROVIDES CARE THROUGH FIVE SCHOOL-BASED HEALTH CENTERS. OUR GOAL FOR THE CENTERS IS TO PROVIDE ACCESSIBLE AND AFFORDABLE CHILDREN'S HEALTHCARE AND TO OFFER HEALTH EDUCATION TO THE CHILDREN AND THEIR FAMILIES. THESE CENTERS ARE HOUSED IN ELEMENTARY SCHOOLS IN THE ALLENTOWN SCHOOL DISTRICT. IN ADDITION TO SCHOOL-BASED HEALTH CENTERS, SACRED HEART OFFERS A PEDIATRIC PRACTICE TO MEET THE NEEDS OF OUR YOUNGEST CITIZENS. SACRED HEART OFFERS A DENTAL CLINIC TO MEET INCREASED NEED FOR ADULTS AND CHILDREN IN OUR COMMUNITY AS WELL AS AN OB/GYN CLINIC TO MEET THE NEEDS OF WOMEN IN OUR COMMUNITY. THROUGHOUT SACRED HEART HEALTHCARE SYSTEM 262,083 PATIENTS WERE SERVICED FROM JULY 1, 2015 TO JUNE 30, 2016. SACRED HEART HEALTHCARE SYSTEM IS COMMITTED TO PROVIDING HIGH QUALITY HEALTHCARE TO ALL PEOPLE. WE HAVE RECEIVED RECOGNITION IN MANY DIFFERENT AREAS FOR OUR EXCELLENCE IN HEALTHCARE. A SAMPLE OF THESE AWARDS AND RECOGNITIONS ARE BELOW. SACRED HEART HEALTHCARE SYSTEM IS PROUD TO OFFER RESIDENCIES AND EDUCATIONAL PROGRAMS TO PHYSICIANS AND OTHER HEALTHCARE PROFESSIONALS. WE OFFER THREE RESIDENCY PROGRAMS INCLUDING DENTAL MEDICINE, FAMILY MEDICINE, AND GERIATRIC MEDICINE RESIDENCY PROGRAMS. OUR FAMILY MEDICINE RESIDENCY PROGRAM RECENTLY RECEIVED A 4-YEAR ACCREDITATION BY THE ACCREDITATION COUNCIL FOR GRADUATE MEDICAL EDUCATION (ACGME). MOSS REHAB- ACUTE REHABILITATION UNIT, HOLDS A THREE-YEAR ACCREDITATION FOR ITS STROKE SPECIALTY INPATIENT REHABILITATION PROGRAM. MOSS REHAB'S STROKE CENTER IS ONE OF SIX EINSTEIN PROGRAMS RECOGNIZED AS CENTERS OF EXCELLENCE. CERTIFIED FOR ACUTE AND REHABILITATION CARE, MOSS REHAB HAS SPECIALTY PROGRAMS IN GAIT AND MOTION ANALYSIS, ROBOTIC-ASSISTED PHYSICAL THERAPY, AND APHASIA. SACRED HEART HOSPITAL HAS BEEN GRANTED PRIMARY STROKE CENTER CERTIFICATION BY THE JOINT COMMISSION. THE JOINT COMMISSION'S CERTIFICATE OF DISTINCTION FOR PRIMARY STROKE CENTERS RECOGNIZES CENTERS THAT MAKE EXCEPTIONAL EFFORTS TO FOSTER BETTER OUTCOMES FOR STROKE CARE. ACHIEVEMENT OF CERTIFICATION SIGNALS THAT THE SERVICES SACRED HEART HOSPITAL PROVIDES HAVE THE CRITICAL ELEMENTS TO ACHIEVE LONG-TERM SUCCESS IN IMPROVING OUTCOMES. TRANSITIONAL CARE FACILITY (TCF) RECEIVED A "FIVE STAR" RATING BY THE U.S. CENTERS FOR MEDICARE AND MEDICAID SERVICES. TCF WAS ONE OF ONLY TWO FACILITIES IN LEHIGH AND NORTHAMPTON COUNTIES TO RECEIVE THIS HONOR. THE COMMISSION ON CANCER (COC) OF THE AMERICAN COLLEGE OF SURGEONS (ACOS) GRANTED THREE-YEAR APPROVAL WITH COMMENDATION TO THE CENTER FOR CANCER CARE AT SACRED HEART HOSPITAL. THE COC RECOGNIZED THE ONCOLOGY PROGRAM AT SACRED HEART HOSPITAL AS OFFERING HIGH-QUALITY CANCER CARE. ONLY ONE IN FOUR CANCER PROGRAMS AT HOSPITALS ACROSS THE U.S. RECEIVES THIS SPECIAL APPROVAL. IT RECOGNIZES THE QUALITY OF SACRED HEART'S COMPREHENSIVE PATIENT CARE AND OUR COMMITMENT TO PROVIDING PATIENTS WITH ACCESS TO ALL OF THE VARIOUS MEDICAL SPECIALISTS INVOLVED IN DIAGNOSING AND TREATING CANCER. ALL IMAGING MODALITIES AT SACRED HEART HOSPITAL AND SACRED HEART IMAGING NORTHAMPTON HAVE BEEN AWARDED A THREE-YEAR TERM OF ACCREDITATION IN IMAGING BY THE AMERICAN COLLEGE OF RADIOLOGY (ACR). SACRED HEART PHARMACY WAS GRANTED ACCREDITATION FOR HOME INFUSION THERAPY SERVICES FROM THE COMMUNITY HEALTH ACCREDITATION PROGRAM (CHAP). CHAP IS THE LEADER IN COMMUNITY-BASED HEALTHCARE ACCREDITATION SERVICES IN THE U.S. AND IS AN ALTERNATIVE TO THE JOINT COMMISSION. CHAP IS AN INDEPENDENT AND NON-PROFIT ACCREDITING BODY. CHAP'S GOAL IS FOR HOME CARE TO NOT ONLY PROSPER BUT GAIN STRENGTH IN THE OVERALL HEALTHCARE INDUSTRY. THE VASCULAR LABORATORY HAS BEEN ACCREDITED BY THE INTERSOCIETAL COMMISSION FOR THE ACCREDITATION OF VASCULAR LABS (ICAVL) SINCE 1996 AND WAS GRANTED A THREE-YEAR RE-ACCREDITATION.
FORM 990, PART III, LINE 4A	SACRED HEART HOSPITAL RECEIVED THE GOLD PLUS GET WITH THE GUIDELINES-STROKE ACHIEVEMENT AWARD FOR STROKE RECOGNITION. GET WITH THE GUIDELINES-STROKE HELPS SACRED HEART HOSPITAL'S STAFF DEVELOP AND IMPLEMENT ACUTE AND SECONDARY PREVENTION GUIDELINE PROCESSES TO IMPROVE PATIENT CARE AND OUTCOMES. THE PROGRAM PROVIDES HOSPITALS WITH A WEB BASED PATIENT MANAGEMENT TOOL, BEST PRACTICE DISCHARGE PROTOCOLS AND STANDING ORDERS, ALONG WITH A ROBUST REGISTRY AND REAL-TIME BENCHMARKING CAPABILITIES TO TRACK PERFORMANCE.
FORM 990, PART VI, SECTION A, LINE 6	SACRED HEART HEALTHCARE SYSTEM IS THE SOLE MEMBER OF THIS ORGANIZATION.
FORM 990, PART VI, SECTION A, LINE 7A	SACRED HEART HEALTHCARE SYSTEM HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF DIRECTORS AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS.
FORM 990, PART VI, SECTION A, LINE 7B	AS THE SOLE MEMBER OF THIS ORGANIZATION, SACRED HEART HEALTHCARE SYSTEM HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF DIRECTORS AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS.
FORM 990, PART VI, SECTION B, LINE 11	THE ORGANIZATION IS AN AFFILIATE IN THE SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. SACRED HEART HEALTHCARE SYSTEM IS THE PARENT ENTITY OF THE SYSTEM. THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY (ITS BOARD OF DIRECTORS) PRIOR TO THE FILING WITH THE IRS. IN ADDITION, THE SACRED HEART HEALTHCARE SYSTEM AUDIT COMMITTEE ALSO PERFORMED A DETAILED REVIEW OF THE FEDERAL FORM 990 PRIOR TO PROVIDING IT TO EACH VOTING MEMBER OF ITS BOARD OF DIRECTORS. SACRED HEART HEALTHCARE SYSTEM BOARD OF DIRECTORS HAS DELEGATED TO THE AUDIT COMMITTEE THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION AND FILING PROCESS FOR THE TAX-EXEMPT AFFILIATES OF THE SYSTEM. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S CONTROLLER AND VARIOUS OTHER INDIVIDUALS OF THE SYSTEM TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR THEIR REVIEW. THE ORGANIZATION'S INTERNAL WORKING GROUP AND OTHER INDIVIDUALS REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S INTERNAL WORKING GROUP AND VARIOUS OTHER INDIVIDUALS FOR FINAL REVIEW AND APPROVAL PRIOR TO PRESENTATION OF THE FEDERAL FORM 990 TO THE MEMBERS OF THE SACRED HEART HEALTHCARE SYSTEM AUDIT COMMITTEE. FOLLOWING THE AUDIT COMMITTEE'S REVIEW THE FINAL FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO THE FILING WITH THE IRS.
FORM 990, PART VI, SECTION B, LINE 12C	THE ORGANIZATION HAS ADOPTED A CONFLICT OF INTEREST POLICY WHICH SETS FORTH THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND PROCESSES. ANNUALLY, ALL THOSE SERVING THE ORGANIZATION IN A FIDUCIARY CAPACITY, INCLUDING DIRECTORS, OFFICERS AND KEY EMPLOYEES RECEIVE A COPY OF THE POLICY AND ANNUAL DISCLOSURE STATEMENTS TO BE COMPLETED. IN ACCORDANCE WITH THE POLICY, THOSE DISCLOSURES ARE REVIEWED AND CONSIDERED BY THE ORGANIZATION'S PRESIDENT AND CEO AND, AS APPROPRIATE, THE BOARD OF DIRECTORS. AN INTERESTED PERSON MAY MAKE A PRESENTATION AT THE BOARD OR COMMITTEE MEETING, BUT AFTER SUCH PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE TRANSACTION OR ARRANGEMENT INVOLVING THE POSSIBLE CONFLICT OF INTEREST. AFTER EXERCISING ANY REASONABLE DUE DILIGENCE REQUIRED BY THE CIRCUMSTANCES, THE BOARD OR COMMITTEE SHALL DETERMINE WHETHER SACRED HEART CAN OBTAIN A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT WITH REASONABLE EFFORTS FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY ATTAINABLE UNDER CIRCUMSTANCES THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST, THE BOARD OR COMMITTEE SHALL DETERMINE IN GOOD FAITH BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN SACRED HEART'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO SACRED HEART AND SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT IN CONFORMITY WITH SUCH DETERMINATION. THE INTERESTED DIRECTOR OR COMMITTEE MEMBER SHALL NOT VOTE REGARDING THE DECISION OF WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT. IF THE BOARD OF TRUSTEES OR COMMITTEE HAS REASONABLE CAUSE TO BELIEVE THAT AN INTERESTED PERSON HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE INTERESTED PERSON OF THE BASIS FOR SUCH BELIEF AND AFFORD THE INTERESTED PERSON AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. IF, AFTER HEARING THE RESPONSE OF THE INTERESTED PERSON AND MAKING SUCH FURTHER INVESTIGATION AS MAY BE WARRANTED IN THE CIRCUMSTANCES, THE BOARD OF TRUSTEES OR COMMITTEE DETERMINES THAT THE INTERESTED PERSON HAS IN FACT FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION.
FORM 990, PART VI, SECTION B, LINE 15	ON AN ANNUAL BASIS THE HUMAN RESOURCES DEPARTMENT OF THE ORGANIZATION PROVIDES THE BOARD WITH COMPENSATION MARKET DATA TO REVIEW AND CONSIDER WITH RESPECT TO ALL KEY EMPLOYEES AND OFFICERS OF THE ORGANIZATION. THE BOARD REVIEWS THE MARKET DATA, APPROVES ANY SALARY ADJUSTMENTS FOR THE EXECUTIVE POPULATION, CONSIDERS BOTH REASONABLENESS AND EFFECTIVENESS OF ALL REMUNERATIVE PROGRAMS AND ESTABLISHES THE DETAILED PERFORMANCE EXPECTATIONS WHICH ARE INCORPORATED INTO THE ORGANIZATION'S INCENTIVE PLANS. ALL OF THESE DISCUSSIONS ARE DOCUMENTED THROUGH THE PROVISION OF MEETING MINUTES.
FORM 990, PART VI, SECTION C, LINE 19	THE ORGANIZATION HAS ISSUED TAX-EXEMPT BONDS TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROJECTS, RENOVATIONS AND EQUIPMENT. IN CONJUNCTION WITH THE ISSUANCE OF THESE TAX-EXEMPT BONDS, THE ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED WITH THE TAX-EXEMPT BOND PROSPECTUS WHICH WAS MADE AVAILABLE TO THE GENERAL PUBLIC FOR REVIEW. THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE COMMONWEALTH OF PENNSYLVANIA. GOVERNING DOCUMENTS, FINANCIAL STATEMENTS, AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST.
FORM 990, PART IX, LINE 11G	PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 6,798,114. MANAGEMENT AND GENERAL EXPENSES 2,035,326. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 8,833,440. CONTRACTED PHARMACY SERVICES: PROGRAM SERVICE EXPENSES 1,447,757. MANAGEMENT AND GENERAL EXPENSES 636. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,448,393. DIETARY ADMIN FEES: PROGRAM SERVICE EXPENSES 1,689,137. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,689,137. COLLECTION FEES: PROGRAM SERVICE EXPENSES 20,237. MANAGEMENT AND GENERAL EXPENSES 533,208. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 553,445. CONTRACTED SERVICES: PROGRAM SERVICE EXPENSES 5,537,646. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 5,537,646.
FORM 990, PART XI, LINE 9:	TRANSFER TO AFFILIATES -10,635,774. CHANGE IN VALUE OF BENEFICIAL INTEREST IN PERPETUAL TRUST -788,272. TRANSFER FROM AFFILIATES 648,495.

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37.
MediumBullet

Attach to Form 990.
MediumBullet

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

SACRED HEART HOSPITAL

Employer identification number

23-1352208

Part I

Identification of Disregarded Entities Complete if the organization answered "Yes" on Form 990, Part IV, line 33.

(a) Name, address, and EIN (if applicable) of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets	(f) Direct controlling entity

Part II

Identification of Related Tax-Exempt Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled entity?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1)SACRED HEART HEALTHCARE SYSTEM 421 W CHEW STREET ALLENTOWN,PA18102 23-2328297	HEALTH SERVICES	PA	501(C)(3)	LINE 11C, III-FI	N/A		No
(2)SACRED HEART FOUNDATION 421 W CHEW STREET ALLENTOWN,PA18102 23-2328300	MANAGEMENT SERVICES	PA	501(C)(3)	LINE 7	SACRED HEART HEALTHCARE SYSTEM		No
(3)SACRED HEART REALTY CORPORATION 421 W CHEW STREET ALLENTOWN,PA18102 23-2384986	TITLE HOLDING CORPORATION	PA	501(C)(2)	N/A	SACRED HEART HEALTHCARE SYSTEM		No

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

Cat. No. 50135Y

Schedule R (Form 990) 2015

Page 2

Part III

Identification of Related Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Part IV

Identification of Related Organizations Taxable as a Corporation or Trust Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(i) Section 512(b)(13) controlled entity?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	Yes	No
(1) SACRED HEART ANCILLARY SERVICES INC 421 W CHEW STREET ALLENTOWN,PA18102 23-2384987	HEALTH SERVICES	PA	N/A	C				No

Schedule R (Form 990) 2015

Page 3

Part V

Transactions With Related Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36.

Note. Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule.

Yes

1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?

a Receipt of (i) interest, (ii) annuities, (iii) royalties, or (iv) rent from a controlled entity .....................

b Gift, grant, or capital contribution to related organization(s) ............................

c Gift, grant, or capital contribution from related organization(s) ............................

d Loans or loan guarantees to or for related organization(s) ............................

e Loans or loan guarantees by related organization(s) ............................

Yes

f Dividends from related organization(s) ............................

g Sale of assets to related organization(s) ............................

h Purchase of assets from related organization(s) ............................

i Exchange of assets with related organization(s) ............................

j Lease of facilities, equipment, or other assets to related organization(s) .......................

k Lease of facilities, equipment, or other assets from related organization(s) ......................

l Performance of services or membership or fundraising solicitations for related organization(s) .....................

m Performance of services or membership or fundraising solicitations by related organization(s) .................

Yes

n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) ...................

o Sharing of paid employees with related organization(s) ............................

p Reimbursement paid to related organization(s) for expenses ............................

q Reimbursement paid by related organization(s) for expenses ............................

r Other transfer of cash or property to related organization(s) ............................

Yes

s Other transfer of cash or property from related organization(s) ............................

If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.

(a) Name of related organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved

Schedule R (Form 990) 2015

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 37.

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(e) Are all partners section 501(c)(3) organizations?		(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2015

Page 5

Part VII

Supplemental Information

Provide additional information for responses to questions on Schedule R (see instructions).

Return Reference	Explanation

Schedule R (Form 990) 2015

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: TO PROVIDE HEALTHCARE & WELLNESS THROUGH QUALITY SERVICES AND SERVICES BASED ON CATHOLIC DIRECTIVES.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	9
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	7
5	Total number of individuals employed in calendar year 2015 (Part V, line 2a) ......	5	1,105
6	Total number of volunteers (estimate if necessary) .............	6	122
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	430,113
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	-101,740

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	1,060,973	0
9	Program service revenue (Part VIII, line 2g) .........	109,983,387	113,301,930
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	930,031	223,205
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	2,283,106	2,064,379
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)	114,257,497	115,589,514
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	102,480	47,915
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)	43,586,594	46,530,175
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)....	60,730,304	59,059,831
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	104,419,378	105,637,921
19	Revenue less expenses. Subtract line 18 from line 12.......	9,838,119	9,951,593
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	72,584,950	71,468,031
21	Total liabilities (Part X, line 26).............	39,467,845	39,103,993
22	Net assets or fund balances. Subtract line 21 from line 20.....	33,117,105	32,364,038

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 55,819,971 including grants of $ 47,915 ) (Revenue $ 73,486,539 )
	INPATIENT SERVICES:EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY INPATIENT SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING THE FISCAL YEAR ENDED JUNE 30, 2016 THERE WERE 5,261 CASES FOR A TOTAL OF 39,067 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT.

4b	(Code: ) (Expenses $ 29,498,056 including grants of $ ) (Revenue $ 32,583,234 )
	OUTPATIENT SERVICES:EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY OUTPATIENT SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING THE FISCAL YEAR ENDED JUNE 30, 2016 THERE WERE 133,712 CASES FOR A TOTAL OF 133,712 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT.

4c	(Code: ) (Expenses $ 6,547,372 including grants of $ ) (Revenue $ 7,232,157 )
	EMERGENCY ROOM SERVICES:EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY EMERGENCY ROOM SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING THE FISCAL YEAR ENDED JUNE 30, 2016 THERE WERE 30,360 CASES FOR A TOTAL OF 30,360 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT.

4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses91,865,399

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)...........	985,302	1,159,921	182,100

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 above	1f

g	Noncash contributions included in lines 1a-1f:$
h Total.Add lines 1a-1f.......

			Business Code
2a	NET PATIENT SERVICE REV	541900	112,733,243	112,733,243
b	MEANINGFUL USE REVENUE	541900	455,864	455,864
c	CAPITATION REVENUE	541900	112,823	112,823
d
e
f	All other program service revenue.
g Total.Add lines 2a–2f.....			113,301,930

3 Investment income (including dividends, interest, and othersimilar amounts) ..........			146,268			146,268
4 Income from investment of tax-exempt bond proceeds
5 Royalties...........
		(ii) Personal	(i) Real
6a	Gross rents		795,536
b	Less: rental expenses		0
c	Rental income or (loss)		795,536
d	Net rental income or (loss)......			795,536			795,536
		(ii) Other	(i) Securities
7a	Gross amount from sales of assets other than inventory	185,000
b	Less: cost or other basis and sales expenses	108,063
c	Gain or (loss)	76,937
d	Net gain or (loss).....			76,937			76,937
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		186,831
b	Less: cost of goods sold ..b		146,877
c	Net income or (loss) from sales of inventory..			39,954			39,954
Business Code			Miscellaneous Revenue
11a	HEALTHCALL REVENUE		900099	524,528		430,113	94,415
b	PARKING REVENUE		900099	300,781			300,781
c	MOSS REHAB REVENUE		900099	124,817			124,817
d	All other revenue ....			278,763			278,763
e	Total. Add lines 11a–11d ......			1,228,889
12	Total revenue. See Instructions......			115,589,514	113,301,930	430,113	1,857,471

1	Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21	47,915	47,915
2	Grants and other assistance to individuals in the United States. See Part IV, line 22
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....
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	37,292,345	34,903,824	2,388,521
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	428,617		428,617
9	Other employee benefits .......	6,179,241	5,284,753	894,488
10	Payroll taxes ...........	2,629,972	2,451,789	178,183
11	Fees for services (non-employees):
a	Management ......	2,610,368	185,569	2,424,799
b	Legal .........	281,183	24,215	256,968
c	Accounting ...........	110,460	110,460
d	Lobbying ...........	7,633		7,633
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O)	18,062,061	15,492,891	2,569,170
12	Advertising and promotion ....	184,465	30,623	153,842
13	Office expenses .......	2,574,541	203,099	2,371,442
14	Information technology ......	148,874	66,000	82,874
15	Royalties ..
16	Occupancy ...........	2,518,082	1,162,003	1,356,079
17	Travel ............	145,529	19,488	126,041
18	Payments of travel or entertainment expenses for any federal, state, or local public officials .
19	Conferences, conventions, and meetings ....	83,272	59,068	24,204
20	Interest ...........	1,224,687	1,224,687
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization ..	5,874,117	5,874,117
23	Insurance ...	1,115,058	1,114,903	155
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	MEDICAL SUPPLIES	15,666,916	15,666,916
b	BAD DEBT EXPENSE	6,407,412	6,407,412
c	REPAIRS & MAINTENANCE	1,014,561	810,770	203,791
d	EQUIPMENT LEASES & RENT	530,531	381,086	149,445
e	All other expenses	500,081	343,811	156,270
25	Total functional expenses. Add lines 1 through 24e	105,637,921	91,865,399	13,772,522	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).

1	Cash–non-interest-bearing ........			2,663	1	2,713
2	Savings and temporary cash investments .........			1,989,833	2	4,814,084
3	Pledges and grants receivable, net ......			902,217	3
4	Accounts receivable, net .............			14,493,664	4	13,529,876
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 ........			2,161,409	8	2,122,582
9	Prepaid expenses and deferred charges ......			1,415,020	9	1,404,094
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	172,456,282
b	Less: accumulated depreciation	10b	134,481,550	37,537,435	10c	37,974,732
11	Investments—publicly traded securities .			9,952,469	11	9,454,542
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 ...........			4,130,240	15	2,165,408
16	Total assets. Add lines 1 through 15 (must equal line 34)...			72,584,950	16	71,468,031

17	Accounts payable and accrued expenses .....	11,394,070	17	11,407,890
18	Grants payable ...		18
19	Deferred revenue .........		19
20	Tax-exempt bond liabilities .........	17,100,795	20	16,116,839
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 ..	9,143,024	23	11,365,966
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	1,829,956	25	213,298
26	Total liabilities. Add lines 17 through 25..	39,467,845	26	39,103,993

	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets	29,856,911	27	31,318,478
28	Temporarily restricted net assets ...........	1,426,362	28	0
29	Permanently restricted net assets	1,833,832	29	1,045,560
	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 ...........	33,117,105	33	32,364,038
34	Total liabilities and net assets/fund balances ........	72,584,950	34	71,468,031